Jumbo loan limits

A jumbo loan could fit you like a glove if you’re buying a more expensive home and need to borrow more than the conforming loan limits allow. So, if you’re looking at an upscale property or simply one in an area of the country where the cost of living is high, here’s what you need to know about the jumbo loan limits in 2021.

Mortgages aren’t one-size-fits-all and jumbo loans are no exception. Essentially, a jumbo loan is a mortgage that exceeds baseline amounts set by Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) guidelines. Since jumbo loans do not have upper limits established by the agencies mentioned, it’s up to your lender to determine the ceiling amount for jumbo loan limits, and whether it enforces it or not.

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Minimum and Maximum Loan Amounts

If you are wondering whether you’ll need a jumbo loan, you need to consider the limits set for conforming loans and U.S. Federal Housing Administration (FHA) loans. The agency-set maximum limits for these loans provide a baseline for jumbo loans.

Most parts of the country have one maximum loan amount for conforming loans. In some high-cost areas, such as Washington D.C. and certain California counties, the threshold for the maximum conforming loan is raised.

For 2021, the Federal Housing Finance Agency raised the maximum conforming loan limit for a single-family property from $510,400 (in 2020) to $548,250. In high-cost areas, the ceiling for conforming mortgage limits is 150% of that limit, or $822,375 for 2021.

See our county-by-county chart below, which highlights all counties with 2021 conforming loan limits above the standard $548,250.

Those limits apply to conforming loans that follow Fannie Mae or Freddie Mac guidelines. A different loan limit kicks in if you’re buying a home in 2021 using an FHA loan, which is backed by the Federal Housing Administration. The FHA loan floor for 2021 is $356,362, up from $331,760 in 2020. The maximum limit for approximately 70 high-cost counties has been raised to $822,375, up from $765,000 in 2020.

Keep in mind, the Federal Housing Finance Agency may increase conforming loan limits again for 2022. If you are planning on taking out a mortgage loan in 2022, check back here for updates on loan limits.

Jumbo Loan Requirements

Because a jumbo loan means you’re taking out a larger-than-typical mortgage, lenders impose stricter requirements than they might for a traditional loan. They will examine several aspects of your financial health to assess whether you can afford a bigger mortgage and if you are likely to pay it back on schedule.

Lenders will look for qualities like a good, steady income, strong credit score and credit history, and low debt-to-income (DTI) ratio, among other benchmarks. This is because they want to know you can afford higher monthly payments and typically higher interest rates that come with jumbo loans as opposed to traditional mortgages.

Keep in mind, while a 20% down payment may not be required for conforming loans, some lenders require 20% (or more) for jumbo loans. This gives lenders increased confidence that you have skin in your new housing game.

Is a Jumbo Loan Right for You?

Now that you know more about jumbo loan limits, you can begin to determine if it’s your best choice for a mortgage. You’ll want to consider whether you will meet the requirements for a jumbo loan, and if you will be able to handle the larger costs associated with a bigger mortgage.

If you are in the market for a bigger home, you might also be in the market for a jumbo mortgage. So, as you conduct your home search, keep an eye on current jumbo loan limits and possible changes to jumbo loan limits for 2022. Talking to a jumbo loan expert can help you decide if you should go big with your mortgage in order to go home.

Interested in a jumbo loan with Ally Home? We’ll walk you through everything you need to know.

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This chart lists only U.S. counties and territories with 2021 conforming loan limits above the standard $548,250. Don’t see your county in this chart? Your maximum conforming loan limit is $548,250.

State/Territory County Limit
Alaska All counties $822,375
California Solano County $550,850
California El Dorado County, Placer County, Sacramento County, Yolo County $598,000
California Santa Barbara County $660,100
California San Luis Obispo County $701,500
California Sonoma County $707,250
California Monterey County, Ventura County $739,450
California San Diego County $753,250
California Napa County $816,500
California Alameda County, Contra Costa County, Los Angeles County, Marin County, Orange County, San Benito County, San Francisco County, San Mateo County, Santa Clara County, Santa Cruz County $822,375
Colorado Adams County, Arapahoe County, Broomfield County, Clear Creek County, Denver County, Douglas County, Elbert County, Gilpin County, Jefferson County, Park County $596,850
Colorado Lake County $625,500
Colorado San Miguel County $649,750
Colorado Boulder County $654,350
Colorado Routt County $678,500
Colorado Garfield County, Pitkin County $765,600
Colorado Eagle County $822,250
Colorado Summit County $822,235
Connecticut Fairfield County $601,450
Florida Monroe County $608,350
Guam Guam $822,375
Hawaii Hawaii County, Honolulu County, Kalawao County, Kauai County, Maui County $822,375
Idaho Blaine County, Camas County, Lincoln County $625,500
Idaho Teton County $822,375
Maryland Calvert County, Charles County, Frederick County, Montgomery County, Prince George's County $822,375
Massachusetts Essex County, Middlesex County, Norfolk County, Plymouth County, Suffolk County $724,500
Massachusetts Dukes County, Nantucket County $822,375
New Hampshire Rockingham County, Strafford County $724,500
New Jersey Bergen County, Essex County, Hudson County, Hunterdon County, Middlesex County, Monmouth County, Morris County, Ocean County, Passaic County, Somerset County, Sussex County, Union County $822,375
New York Dutchess County, Orange County $726,525
New York Bronx County, Kings County, Nassau County, New York County, Putnam County, Queens County, Richmond County, Rockland County, Suffolk County, Westchester County $822,375
North Carolina Camden County, Pasquotank County, Perquimans County $625,500
Pennsylvania Pike County $822,375
Tennessee Cannon County, Cheatham County, Davidson County, Dickson County, Macon County, Maury County, Robertson County, Rutherford County, Smith County, Sumner County, Trousdale County, Williamson County, Wilson County $586,500
U.S. Virgin Islands St. Croix Island, St. John Island, St. Thomas Island $822,375
Utah Salt Lake County, Tooele County $600,300
Utah Box Elder County, Davis County, Morgan County, Weber County $646,300
Utah Summit County, Wasatch County $817,650
Virginia Alexandria City, Arlington County, Clarke County, Culpeper County, Fairfax City, Fairfax County, Falls Church City, Fauquier County, Fredericksburg City, Loudoun County, Madison County, Manassas City, Manassas Park City, Prince William County, Rappahannock County, Spotsylvania County, Stafford County, Warren County $822,375
Washington King County, Pierce County, Snohomish County $776,250
Washington D.C. District of Columbia $822,375
West Virginia Jefferson County $822,375
Wyoming Teton County $822,375