Last month, FHFA announced it was increasing Fannie Mae and Freddie Mac’s conforming loan limit for 2020 to $510,400 from $484,350, a just-over five percent increase. HUD’s Mortgage Letter increases FHA’s loan limits for low-cost and high-cost areas to reflect this change. Specifically, the low-cost limit will increase to $331,760 from $314,827, and the high-cost loan limit will increase to $765,600 from $726,525. The loan limits for Alaska, Hawaii, Guam, and the Virgin Islands are set at $1,148,400 to reflect high construction costs.
The loan limits will increase for nearly all counties in the country in 2020. However, because of changes made to the definition of certain Metropolitan Statistical Areas by the Office of Management and Budget, eleven jurisdictions will see a loan limit decrease from 2019 to 2020. FHA has published separate pages listing those counties with loan limit increases and decreases, as well as a page allowing users to search for loan limits by county. The new limits will apply to all loans assigned FHA case numbers on or after January 1, 2020.
We are ready to help you find the best possible mortgage solution for your situation. Contact Sheila Siegel at Synergy Financial Group today.
