The Federal Housing Finance Agency announced that it is raising the conforming loan limits for Fannie Mae and Freddie Mac to more than $510,000. In most of the United States, the 2020 maximum conforming loan limit will be raised to $510,400, up from the $484,350 limit this year.
“As a result of generally rising home values, the increase in the baseline loan limit, and the increase in the ceiling loan limit, the maximum conforming loan limit will be higher in 2020 in all but 43 counties or county equivalents in the U.S.,” FHFA said in an announcement of the new loan limits.
What does this mean for you?
When you stay within the conforming loan limits, you will most likely experience better terms and rates. This is positive news, especially for first-time homebuyers as home prices continue to rise. This will give you a chance to get in at a higher loan amount while not being docked on rates and terms.
The FHFA did talk about how home prices have increased 5.38% between the third quarter of 2018 versus the third quarter of 2019. The new ceiling loan limit for one-unit properties in most high-cost areas will be $765,600.
Click here for a map of the maximum conforming loan limits in your county: https://www.fhfa.gov/DataTools/Tools/Pages/Conforming-Loan-Limits-Map.aspx
If you have questions about this information, please reach out to us today! We would love to talk to you about your options.
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