Higher Conforming Loan Limits Take Effect as of January 1

Conforming loan limits for mortgages backed by Fannie Mae and Freddie Mac have increased in California from 2021’s limit of $548,250 to $647,200 on one-unit properties and a cap of $970,800 in high-cost areas, effective Jan. 1. The previous loan limits were $548,250 and $822,375, respectively.The California Association of REALTORS® welcomed the increase since California’s home prices climbing so significantly during the pandemic. If loan limits were not allowed to increase every year to keep up with home prices, first-time and moderate-income homebuyers across the state would not have access to affordable mortgage capital, which reduces homeownership opportunities for those who need it the most.