Mortgage News


Fannie Mae & Freddie Mac are increasing their county loan limits to more than $510,000.

The Federal Housing Finance Agency just announced that it is raising the conforming loan limits for Fannie Mae and Freddie Mac to $510,400 and to over 765,000 in high balance limit counties.

The $510,400 applies to most counties in the country.  This number is up from 2019’s level of $484,350.

This is the fourth straight year that the FHFA has raised these limits after not increasing them for an entire decade from 2006 to 2016.

In 2016, the FHFA increased the conforming loan limits from $417,000 to $424,100. Then, the next year, raised the loan limits to $453,100 for 2018. In 2018, they raised the loan limit to $484,350 for 2019.

The conforming loan limits for Fannie Mae (FNMA) and Freddie Mac (FHLMC) are determined by the Housing and Economic Recovery Act of 2008, which established the baseline loan limit at $417,000 and mandated that, after a period of price declines, the baseline loan limit cannot rise again until home prices return to pre-decline levels.

Data from FHFA shows that home prices increased by 5.38% on average between the third quarter of 2018 and the third quarter of 2019. Therefore, the baseline maximum conforming loan limit in 2020 will increase by the same percentage.

Median home values generally increased in high-cost areas in 2019, driving up the maximum loan limits in many areas. The new ceiling loan limit for one-unit properties in most high-cost areas will be $765,600. This is 150% of the low limit of $510,400.

The reason for the increase is a result of generally rising home values, the increase in the base loan amounts over the year, and the increase. The maximum conforming loan limit will be higher in 2020 in all but 43 counties or county equivalents in the U.S. This also allows the GSE's to continue to be able to offer loans to most borrowers. 

For a map showing the 2020 maximum loan limits across the U.S., click here.

And for a breakdown by county, click here.

To find out if this change can be an advantage to you, call us at 866-697-0101.