2021 has brought higher home loan rates but even with the rise in mortgage rates…
Fannie Mae and Freddie Mac maximum conforming loan limits for 2021 will increase to $584,250 according to the Federal Housing Finance Agency (FHFA) November 24, 2020 Press Release. The 2021 maximum conforming loan limits will increase $37,850 from the 2020 level. In 2020 the maximum conforming loan limit was $510,400 however in 2021 the new maximum conforming loan limit will be $548,250.
Martini Mortgage Podcast (episode 114)
Why the change in conforming loan limits?
Per the Housing and Economic Recovery Act, annually the baseline maximum conforming loan limit needs to be adjusted to reflect the change in the average U.S. home price. According to the 2020 FHFA House Price Index, home prices increased 7.42%, on average, between the third quarters of 2019 and 2020. The increase in the 2021 conforming loan limit reflects this percentage change.
What is the maximum conforming loan limit in Raleigh?
For a single family home the the maximum conforming loan amount is $548,250 in Raleigh, North Carolina which is located in Wake County, North Carolina. A duplex (2-unit single family) in Raleigh, North Carolina would have a maximum conforming loan limit of $702,000. A tripex (3-unit single family)in Raleigh, North Carolina would have a maximum conforming loan limit of $848.500. A quadplex in Raleigh, North Carolina would have a maximum conforming loan limit of $1,054,500.
(NOTE: North Carolina has 100 counties…3 of 100 counties are considered high cost (e.g. Camden, Pasquotank and Pewrquimans) and carry a maximum conforming loan limit of $625,500)…all other countries in North Carolina carry a maximum conforming loan limit of $548,250.
Does Fannie Mae and Freddie Mac offer unique home loan programs with low downpayment?
If you are dreaming of buying a home and are conserved about the down payment, don’t be. It is a myth that you have to put 20% down to buy a home. Freddie Max has a program called Home Possible and Fannie Mae has a program called HomeReady. Both program are low down payment options for first-time home buyers and repeat homebuyers too. For more information about these programs contact Martini Mortgage Group at Benchmark Mortgage by calling (919) 238-4934.