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I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.

As we enter 2021, loan limits for different types of loans have changed. Veterans Affairs (VA) loans closing on or after Jan. 1st, 2021 will be subject to the same loan limits announced by the Federal Housing Finance Agency (FHFA). The 2021 VA loan limit will therefore increase to $548,250 for one-unit properties. This is a 7.42% increase from the 2020 limit. The ceiling loan limit for one-unit properties in most high-cost areas will be $822,375. 

Here is the limit breakdown by property size:

2021 VA loan limit

VA loans are loans backed by the Department of Veterans Affairs and are available to active-duty members and veterans of the U.S. military, as well as members of the National Guard and surviving spouses. Cadets, in nearly all military branches also have VA eligibility. If you qualify, you should consider taking advantage of the 2021 VA loan limits.

Learn the basics of VA loans – from eligibility to getting qualified – here. 

There are a few things you need to keep in mind when considering a VA loan: 

  1. VA does not impose a maximum loan amount that a veteran may borrow. However, VA imposes a maximum amount that may be guaranteed on a home loan. 
  2. If you are a veteran with full entitlement, VA will guaranty 25% of any loan amount. 
  3. If you are a veteran who has previously used entitlement, and the entitlement has not been restored, the maximum amount of guaranty is the lesser of the 25% of the loan amount or the maximum amount of guaranty entitlement available. 
  4. An exception is required to manually underwrite loan amounts that exceed the FHFA conforming loan limit. 

The United States Department of Agriculture (USDA) has also increased its maximum loan limit. The 2021 USDA loan limit is $548,250. USDA loans are available to home buyers with low-to-average income for their area. Some of the offerings include financing with no down payment, below-market rates, and reduced mortgage insurance. They are a part of the USDA’s Rural Development Housing Loan Program. 

It’s important to keep in mind that the USDA also has household income limits that dictate eligibility and thereby limit the loan amounts of the program. Homebuyers qualify based on their debt to income ratio. Here’s an example of 2021 income limits in Florida:

You can check the household income limit for your county on the USDA eligibility website

This is a great time to be a prospective homebuyer. These higher loan limits allow borrowers to borrow up to an amount that reflects the housing market around them, thereby increasing their buying power. If you’re looking to kickstart your journey to homeownership, get started by getting a rate quote.