Published on December 19, 2019
Written by The Servion Group
For the fourth straight year, the Federal Housing Finance Agency has announced an increase in conforming loan limits for Fannie Mae and Freddie Mac.
In most of the U.S., the 2020 maximum conforming loan limit will be $510,400. That's an increase of more than 5 percent from 2019's limit of $484,350. This fourth consecutive increase is all the more notable because the FHFA went an entire decade (2006-2016) without raising the limit even once.
In designated high-cost areas, the limit will rise from $726,525 to $765,600.
The FHFA keeps the conforming loan limit in line with home values, as required by the Housing and Economic Recovery Act of 2008. FHFA data showed that home prices increased an average of 5.38 percent between the third quarter of 2018 and the third quarter of 2019. Therefore, the agency raised the conforming loan limit by the same percentage.
To find the conforming loan limit for any county in the U.S., use FHFA's interactive map.
As a reminder, Servion retail and correspondent partners can access jumbo loans through us, bringing an important solution to borrowers.