Conforming Loan Limits to Rise

December 3, 2019
The new limit of $510,400 replaces 2019’s $484,350 limit.


The Federal Housing Finance Agency (FHFA) announced the maximum conforming loan limits for conventional conforming loans to be acquired by Fannie Mae and Freddie Mac in 2020. In most of the U.S., the 2020 maximum conforming loan limit for one-unit properties will be $510,400, an increase from $484,350 in 2019. According to FHFA’s seasonally adjusted, expanded-data HPI, house prices increased 5.38 percent, on average, between the third quarters of 2018 and 2019. Therefore, the baseline maximum conforming loan limit in 2020 will increase by the same percentage as required by the Housing and Economic Recovery Act (HERA).

For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit, the maximum loan limit will be higher than the baseline loan limit. The new ceiling loan limit for one-unit properties in most high-cost areas will be $765,600 — or 150 percent of $510,400. 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. For a map showing the 2020 maximum loan limits across the U.S. click here. 

Source: FHFA

Note: An announcement of similar increases for FHA Loans should be released shortly and this means more options for low-cost/low down payment financing for most Americans. VA will not have limits in 2020 due to recent legislation.