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California REALTORS® applaud FHFA for raising Fannie Mae and Freddie Mac conforming loan limits

CALIFORNIA ASSOCIATION OF REALTORS today issued the following statement in response to the Federal Housing Finance Agency (FHFA) announcement to increase the 2021 conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac to $548,250, on one-unit properties and a cap of $822,375 in high-cost areas. The previous loan limits were $510,400 and $765,600, respectively.

C.A.R. commends the FHFA for recognizing California’s record-setting home price increases during this past year and raising maximum conforming loan limits, which will give tens of thousands of California homebuyers a chance at homeownership,” said C.A.R. President Dave Walsh, vice president and manager of the Compass San Jose office. “Increasing the existing Fannie Mae and Freddie Mac conforming loan limits will greatly benefit higher-priced areas of the state and provide stability and certainty to the housing market.”

C.A.R. and the NATIONAL ASSOCIATION OF REALTORS® (NAR)  both have long advocated for making higher conforming loan limits permanent. As a result of C.A.R.’s and NAR’s efforts, cities with high median home prices have benefited from a loan limit above the national conforming loan limit.

The conforming loan limit determines the maximum size of a mortgage that government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac can buy or “guarantee.” Non-conforming or “jumbo loans” typically have tighter underwriting standards and sometimes carry higher mortgage interest rates than conforming loans, increasing monthly payments and hampering the ability of families in California to purchase homes by making them less affordable.


Aria Vatankhah Founder of Milad Real Estate
Real Estate Broker/Attorney at Law
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Aria Vatankhah - Menlo Park Homes For Sale

Aria Vatankhah

650-799-8168

Real Estate Broker / Attorney at Law

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