What Are Mortgage Loan Limits & Is My Mortgage Jumbo?

The federal government backs close to 95% of U.S. mortgages through one of its five mortgage agencies.

Of the remaining five percent, many are jumbo loans.

Jumbo loans are loans that are too large to be backed by the government. The demarcation lines between jumbo loans and non-jumbo loan are known as mortgage loan limits.

Mortgage loan limits are national and standardized, with exceptions made in areas where it's expensive for buyers to buy.

The 2021 mortgage loan limit is $548,250 for a one-unit homes including detached houses, town homes, and condominiums.

The limits for multi-unit homes are higher:

  • 2-unit home: $702,000 loan limit
  • 3-unit home: $848,500 loan limit
  • 4-unit home: $1,054,500 loan limit

There are also 158 areas where loan limits are increased.

These regions are known as “high-cost areas”. They include cities such as San Francisco, Los Angeles, and most of California; New York City; and, Washington, D.C. and its surrounding suburbs.

In high-cost areas, loan limits are close to twenty percent higher.

  • 1-unit home: $822,375 loan limit
  • 2-unit home: $1,053,000 loan limit
  • 3-unit home: $1,272,750 loan limit
  • 4-unit home: $1,581,750 loan limit

Ask us your question about mortgage loan limits and jumbo loans in the chatbox. We're here to help.

Dan Green

Dan Green is a former mortgage loan officer and an industry expert. He's appeared on NPR and CNBC, and in The Wall Street Journal, Bloomberg, and dozens of local newspapers. Dan has helped millions of first-time home buyers get educated on mortgages, real estate, and personal finance. Have mortgage questions? Ask Dan in the chat.

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