For 2021, the Federal Housing Finance Agency (FHFA) which oversees Fannie Mae and Freddie Mac raised the maximum conforming loan limit for a single-family property from $510,400 in 2020 to $548,250. In high-cost areas, including parts of California, New York, Washington D.C. and others, the limit for conforming mortgage loan limits is 150% of that limit, or $822,375. You can also get a jumbo FHA loan, which follows the same limits as for conforming loans, with the exception that some counties in Hawaii, Alaska and Guam have limits as high as $1,233,550.

What if you need to borrow more? You’ll need a jumbo mortgage loan, defined as a loan that’s any amount over conforming limits. If you’re wondering whether you will need a jumbo loan to buy your next home, check conforming loan limits for your area here and FHA loan ceilings here.

What does it take to qualify? Ally.com suggests that non-conforming loans pose a higher risk to lenders. Qualification requirements can vary among lenders, but you will likely need higher credit scores, down payment and cash reserves, and you’ll pay higher interest rates and experience greater scrutiny of your financial sources.

Not all lenders provide jumbo loans, so it’s wise to shop around to get the best terms. You can also ask your Berkshire Hathaway HomeServices network professional for referrals to lenders who are experienced and willing to make jumbo loans or that offer other loan products that allow you to meet the FHFA limits for high-cost areas.