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Cook County FHA Limits Increase Almost $12,000

Attention Buyers: Cook County FHA loan limits are set to go up almost $12,000 higher in 2021 than the 2020 limits.

The Federal Housing Administration (FHA) is increasing its 2021 single family house loan limit in Cook County, IL to $379,500, almost $12,000 higher than the 2020 limit of $368,000. The loan limit is based on the national conforming loan limit for Fannie Mae and Freddie Mac.

The purpose of FHA loans (loans backed by the Federal Housing Administration, which means you can get insurance-free loans with down payments as low as 3.5%) is to provide assistance to low-to-moderate income borrowers. Loan limits set the maximum amount of money a borrower can take out under the FHA program to purchase a home. FHA loans can be obtained for single family homes and owner-occupied multi-unit properties. They cannot be obtained for commercial properties.

FHA is required by the National Housing Act to set single-family loan limits at 115% of median house prices. Unlike 2020’s report, the FHA said there are no counties where the loan limits will be decreasing. According to the FHA, the loan limits are effective for loans originated between Jan. 1, 2021, and Dec. 31, 2021.

Happy buying in 2021!

Written by Joanna Sokolowski
Source: LendingTree; HousingWire;

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