On November 26, 2019, the Federal Housing Finance Agency (FHFA) published the 2020 conforming loan limits for Freddie Mac and Fannie Mae.
The baseline (national) limit will increase to $510,400 from $484,350 in 2019. In high cost areas, the limit will go up to $765,600 (from $726,525). The loan limits are based on FHFA’s Housing Price Index, which increased by 5.38% since last year. Therefore, the baseline maximum conforming loan limit in 2020 will increase by the same percentage.
The new limits take effect on Jan 1, 2020. FHA is expected to publish its loan limits in early December, which should mirror the FHFA limits.
What does this mean for you?
It means that it can make it easier to get into your dream home. With housing prices rising, this change brings the loan amounts more inline with real-world loan needs from buyers in todays market.
You may be able to get into the house that you wanted but were unable due to the loan limits. This is great news especially for California home buyers with some of the most expensive homes in the nation.
Amy Keizer a "Real Estate Agent that LISTENS!"
Amy Keizer Realtor® | (877) 925-4AMY (4269)Realty One Group Elite Team | DRE # 02055878 www.dreamhomesbyamy.com