Fannie, Freddie Raise Conforming Loan Limits for 2019

Filed in Housing Finance by on November 27, 2018 0 Comments
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money house conceptThe Federal Housing Finance Agency (FHFA) today announced that the maximum baseline conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2019 will increase to $484,350 from $453,100.

The loan limit will rise 6.9% in 2019 because FHFA has determined that the average U.S. home value increased 6.9% between the third quarters of 2017 and 2018.

Higher loan limits will be in effect in higher-cost areas as well. In areas where 115% of the local median home value exceeds the baseline loan limit, the maximum area loan limit will be higher. The new ceiling loan limit in high-cost markets will be $726,525, or 150% of the $484,350 for single-family properties. The previous ceiling was $679,650.

Special statutory provisions establish different loan limit calculations for Alaska, Hawaii, Guam, and the U.S. Virgin Islands. In these areas, the baseline loan limit will be $726,525 for single-family properties, but actual loan limits may vary in specific locations. A list of the 2019 maximum conforming loan limits for all counties and county-equivalent areas in the country may be found here.

The FHA also will increase the floor of its 2019 loan limits, which is set at 65 percent of the new national conforming loan limit.

For additional information, contact Curtis Milton at 800-368-5242 x8597.

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