17 Dec FHFA Announces Conforming Loan Limits For 2020
The Federal Housing Finance Agency recently raised the conforming loan limits for 2020. This is the fourth straight year that the FHFA has increased conforming limits after not raising them for 10 consecutive years from 2006 to 2016. By law, Fannie Mae and Freddie Mac are restricted to buying single family mortgages with origination amounts below a set limit. Loans that fall outside of this limit are Jumbo loans which are considered non-agency and do not adhere to rules set by housing finance agencies.
The FHFA released a report that reveals that home prices increased an average of 5.38% from Q3 2018 and Q3 2019. As a result, they increased the baseline maximum conforming loan limit by the same percentage.
The maximum loan limit for the majority of the U.S. in 2020 for one unit properties is set at $510,400. This is an increase from $484,350 in 2019. High cost areas for approximately 70 counties where the loan limit exceeds this floor amount increased to $765,600. The high cost loan limit in 2019 is $726,525.
This is great news for homebuyers wanting to qualify for a conventional loan and buy a higher priced home. Angel Oak Home Loans has traditional loan products to help those whose loan falls under the conforming limit and an innovative Jumbo program for those outside of conforming limits.
Contact us today for more information about our conventional and Jumbo loan products and how we can help with your mortgage needs.
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