2020 Conforming Loan Limits

The Federal Housing Finance Agency approved a higher conforming loan limit that will take effect Jan. 1, 2020. The cap on loans purchased or acquired by Fannie Mae and Freddie Mac during 2020 will increase to $510,400, the FHFA said Tuesday. That marks an increase over the $484,350 limit for 2019.

Higher limits are available for properties that contain two, three, or four units. The limits for multiunit properties range from $653,550 to $981,700.

View a map showing the 2020 maximum loan limits nationwide. (Note: El Dorado County, CA. is $530,001 to $765,599 for 1 – 4 units)

Source: FHFA and “Conforming Loan Limit Increased to $510,400,” Mortgage News Daily (Nov. 26, 2019)

Home Buyers Really Need to Hurry

Home buyers are expected to outnumber home sellers this spring, which likely will drive up asking prices, Lawrence Yun, the chief economist for the National Association of REALTORS®, told The Wall Street Journal. “Given that prices are rising, more people will be pushed on the borderline of conventional mortgage limits and may need a large down payment or a jumbo mortgage,” Yun says.

Good news for home buyers this spring: Mortgage rates are expected to stay low, with the 30-year fixed-rate mortgage not likely to rise above 4 percent before May, says Keith Gumbinger, HSH.com.

We urge home buyers to get preapproved for a loan prior to home-shopping — a step above prequalification. Local lenders do this and assist with loan information. This could save home shoppers up to 10 days in the purchase process.

Source: “This Spring, Expect Higher Home Prices,” The Wall Street Journal (March 10, 2016) [Log-in required.]