FHA Raises Loan Limits for the Forthcoming Year

2021 will be a prime time to be looking for a new home. The FHA promotes a raise of limits by nearly $25,000, with the higher-costing ceilings reaching an amount of $56,000. As a result of the real estate market continually increasing in prices, it only makes sense to increase the home loan limits to keep up with the growth.

2020 had a loan limit of around #331,760 for most areas in the continental United States, while the next year is expected to have a limit of $356,362. Fannie Mae and Freddie Mac are subsequently increasing the national conforming loan limit to $548,250. The FHA’s minimum “floor limit” of this year is 65 percent of the conforming loan limit of $548,250, which applies to counties with 115 percent of median home prices less than that.

More About High-Cost Counties

Many counties surpass the FHA’s floor limit for home loans, which is why they are changing things up for 65 of these to have a loan limit of $822,375. This change is close to around a $57,000 increase over this year’s total of just over $760,000. Therefore, getting a home loan in Ewa Beach or other areas of Hawaii just might be easier next year, so living that beach life can be possible soon.

The Mission of the FHA

The FHA always works to provide low-to-moderate income borrowers with opportunities to secure their dream homes. With these shifts to higher conventional loan numbers for the coming years, this might be a great way to get people the homes they seek. Additionally, the FHA was required under the National Housing Act to set single-family loan limits to 115% of median house prices, with a floor and ceiling on the loans. The Housing and Economic Recovery Act of 2008 required the FHA to set the ceilings on higher-cost areas to 150% regarding the national conforming limit.

Hawaii’s 2021 FHA Limit

Securing a home loan in Ewa Beach or any other area in Hawaii is more manageable next year, as the limit is a whopping $1,233,550. This number is similar in areas like Alaska, Guam, and the Virgin Islands, as these are places with some of the highest real estate values in the United States.

2021 might be the year where you can secure a new home in a tropical paradise or a tranquil northern area like Alaska. In Hawaii, Ewa Beach mortgage brokers can help you get started on planning for the coming year and assist in finding the best properties for your budget.

HI Velocity Mortgage: FHA Loan Expert in Hawaii

Real estate is complicated, especially knowing how much money it costs to purchase a house. With plenty of states available to choose your next home from, it is nice to know that the FHA is raising loan limits for everyone who wishes to find a home somewhere different. Hawaii is nice all-year-round, which might be a point of contention for your list of options!

HI Velocity Mortgage is home to the best Ewa Beach mortgage brokers who deal with properties in the local Hawaiian area. If you wish to make a move this coming year, a professional who deals with the whole process will be your best friend. Contact us at (808) 727-1055 to learn more about 2021 loans and buying your next home!