The Federal Housing Administration announced recently that the loan limit for single-family FHA mortgages will be increased from $331,760 to $356,362 in the majority of counties for 2021. The FHA is required to set single-family loan limits at 115% of area median house prices, subject to a ceiling and floor. This requirement was brought about by the National Housing Act per the Housing and Economic Recovery Act of 2008. The loan limit ceiling for single-family homes in high price housing areas will be raised from $765,600 to $822,375 for 2021. Recently the FHFA announced that the conforming loan limit for conventional loans was raised to $548,250 also, so the rise in FHA loan limits comes as no surprise.
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