Mortgage KnowledgeThe Mortgage Minute Series

2021 Southern California Loan Limits

Now that we are well into January, I thought it would be a good idea to look at the 2021 Southern California loan limits.

Oh, if you prefer to watch rather than read, then click on the video below.  You can also head over to my YouTube Channell to check out other videos in the library.

The awesome news is that there are big increases to the 2021 Southern California Loan limits.  Let’s start off by taking a look at Conforming loan limits.

2021 conforming loan limits

These are the conforming loan limits nationwide with the exception of Alaska, Hawaii, Guam or the US Virgin Islands.

2021 conforming loan limits for all areas except Alaska, Hawaii, Guam or the US Virgin Islands
These limits apply to the contiguous US, DC and Puerto Rico

As you can see, the more units in the property, the higher the loan limit.  But what if you are in Alaska, Hawaii, Guam or the US Virgin Islands?  Then your 2021 conforming loan limits would be:

1 Unit $822,375
2 Units $1,053,000
3 Units $1,272,750
4 Units $1,581,750

2021 Southern California Loan limits for High Balance Loans

High cost areas have access to High Balance loans. Here are the figures for the 2021 Southern California area

2021 high balance loan limits for Southern California

Check out the high balance limits in your area HERE.

What is the difference between conforming and high balance loans?

Conforming and high balance loan have a lot of similarities, however there are some subtle differences between the two. They include higher down payment requirements on conventional loans, more restrictive Debt to Income ratio guidelines and different interest rates.

I do want to point out that these limits apply to conventional and FHA loans. If you are looking for a VA loan, then the limits will not apply as long as you have full entitlement. If you DO NOT have full entitlement, then use the 1 unit limits. VA loans do not make allowances for higher loan amounts based on unit count.

Laura Borja on Social Media

So, there you have it. A quick look at the 2021 Southern California Loan Limits.

If you have any questions on this topic or any other mortgage-related topic, by all means reach out to me. Send me an email Give me a call – (858) 3-LOANS-3 Text LOANINFO to 44222 Connect with me on Social Media.

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