
Every year, the Federal Housing Finance Agency (FHFA) sets a dollar cap on conventional mortgages that Freddie Mac or Fannie Mae are allowed to back, commonly referred to as a conforming loan limit. In 2020, the conforming loan limit for a single-family home was $510,400. This year, the conforming loan limit for a single-family home increased to $548,250, nearly 7.6% higher!
This means Freddie Mac or Fannie Mae can purchase conventional loans valued at or under the conforming loan limit from mortgage lenders.
In most areas, the maximum conforming loan limits are as follows:
Single-family property $548,250
Duplex $702,000
Triplex $848,500
Four Plex $1,054,500
Anything larger than 4 units is considered a commercial loan which doesn’t qualify a residential conforming loan.
But if you live in a high cost area, the conforming loan limit may be higher. These loans are called conforming “high balance” loans and can come at a slightly higher interest-rate.
Those limits for conforming “high balance” loans are:
Single-family property $548,251 – $822,375
Duplex $702,001 – $1,053,000
Triplex $848,501 – $1,272,750
Four Plex $1,054,501 – $1,581,750.
Any mortgage amount that is higher than the loan limits outlined above is considered a jumbo loan and subject to different requirements, may have a higher interest-rate, and generally is considered as a different type of loan.
Check out how conforming loan limits for single family homes have changed throughout the years, dating all the way back to my first year in the business, 1986!
Year | Loan Limit |
2021 | $548,250 |
2020 | $510,400 |
2019 | $484,350 |
2018 | $453,100 |
2017 | $424,100 |
2016 | $417,000 |
2015 | $417,000 |
2014 | $417,000 |
2013 | $417,000 |
2012 | $417,000 |
2011 | $417,000 |
2010 | $417,000 |
2009 | $417,000 |
2008 | $417,000 |
2007 | $417,000 |
2006 | $417,000 |
2005 | $359,650 |
2004 | $333,700 |
2003 | $322,700 |
2002 | $300,700 |
2001 | $275,000 |
2000 | $252,700 |
1999 | $240,000 |
1998 | $227,150 |
1997 | $214,600 |
1996 | $207,000 |
1995 | $203,150 |
1994 | $203,150 |
1993 | $203,150 |
1992 | $202,300 |
1991 | $191,250 |
1990 | $187,450 |
1989 | $187,600 |
1988 | $168,700 |
1987 | $153,100 |
1986 | $133,250 |
Mortgage guidelines can change at any time, so always talk to an experienced mortgage loan officer who will help you understand the current guidelines and how they might apply to you.
Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.