11/26/2019 | News release | Distributed by Public on 11/26/2019 14:50
The Federal Housing Finance Agency (FHFA) today announced that the maximum baseline conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2020 will increase to $510,400 from $484,350.
The loan limit will rise 5.38% in 2020 because FHFA has determined that the average U.S. home value increased by that amount between the third quarters of 2018 and 2019.
Higher loan limits will be in effect in higher-cost areas as well. The new ceiling loan limit in high-cost markets will be $765,600. The previous ceiling was $726,525.
Special statutory provisions establish different loan limit calculations for Alaska, Hawaii, Guam, and the U.S. Virgin Islands. In these areas, the baseline loan limit will be $765,600 for single-family properties, but actual loan limits may vary in specific locations. A list of the 2020 maximum conforming loan limits for all counties and county-equivalent areas in the country may be found here.
In its news release, FHFA said that 'as a result of generally rising home values, the increase in the baseline loan limit, and the increase in the ceiling loan limit, the maximum conforming loan limit will be higher in 2020 in all but 43 counties or county equivalents in the U.S.'
For additional information, contact Curtis Milton at 800-368-5242 x8597.