Starting in 2020 Fannie Mae and Freddie Mac will let borrowers nationwide take out mortgages over $500K.
The Federal Housing Finance Agency (FHFA) has again raised the maximum conforming loan limits. The agency announced that it will increase the limit on conforming loans, meaning mortgages that adhere to the standards imposed by Fannie Mae and Freddie Mac, to a maximum of $510,400 nationwide. In high-cost areas, the maximum loan limit for mortgages acquired by Fannie Mae and Freddie Mac will be $765,600.
On a local level, the loan limits were set higher in all but 43 counties across the country, the FHFA reported.
See full list published by FHFA of the loan limits for each county nationwide for borrowers to reference.
By law, conforming loan limits must be adjusted to reflect changes in home prices across the U.S. The FHFA noted that its data show home prices had increased on average 5.38% between the third quarters of 2018 and 2019. Therefore, the loan limits increased by that percentage. In high-cost areas, the law allows loan limits to be set 50% higher than the baseline level nationally. Special provisions also establish different loan limit calculations for Alaska, Hawaii, Guam and the U.S. Virgin Islands