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Higher Conforming Loan Limits Take Effect | Realtor Magazine

The Federal Housing Finance Agency’s new loan limits for 2020 have gone into effect; Fannie Mae and Freddie Mac, which are operated by the FHFA, began backing larger loans last week when the new year started. The cap on Fannie and Freddie loans has increased to $510,400 from 2019’s $484,350 limit.

This is the fourth consecutive year that the FHFA has raised conforming loan limits, which can stretch even higher in areas with expensive median home values. High-cost areas will be capped at $765,600, or 150% of the $510,400 limit. The maximum conforming loan limit is higher in 2020 for all except 43 counties in the U.S.

View a breakdown of loan limits by county for Fannie and Freddie.

The Federal Housing Administration also increased its loan limit to $331,760, which is a $17,000 increase from 2019. In about 70 designated high-cost counties, the FHA’s 2020 loan limit has climbed to $765,600, a $40,000 increase from 2019. Alaska, Hawaii, Guam, and the U.S. Virgin Islands have higher limit ceilings than the rest of the country because of higher construction costs, the FHA says. Those areas have a 2020 FHA loan limit of $1,148,400.


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