Loan Limits Increase in 2020
On November 26, 2019, the Federal Housing Finance Agency (FHFA) published the 2020 conforming loan limits for Freddie Mac and Fannie Mae. The baseline (national) limit will increase to $510,400 from $484,350 in 2019.
In the higher cost areas of King, Pierce and Snohomish counties, the limit will go up to $741,750. The way that loan limits are calculated, all counties within the same Metropolitan Statistical Area (MSA) benefit from the highest limit in that MSA.
The loan limits are based on FHFA’s Housing Price Index, which increased by 5.38% since last year. Therefore, the baseline maximum conforming loan limit in 2020 will increase by the same percentage. Look up the loan limit in your area.
The new limits take effect on Jan 1, 2020. Federal Housing Administration (FHA) published its loan limits on December 3, which mirrors the FHFA limits.
Content for this story provided by NAR.