Increased 2020 Conforming Loan Limits Provides More Buying Power

Here’s some good news for the nation’s homebuyers. For the fourth straight year, the Federal Housing Finance Agency (FHFA) has announced that it is increasing the conforming and high-cost area loan limits for Fannie Mae and Freddie Mac mortgages in the majority of the United States.
With home prices rising across the nation, this increase may make it easier for both first-time buyers and current homeowners to buy a home. Homeowners can also apply to refinance their home.

As of 1 January 2020, the base conforming loan limit will increase to $510,400 for one-unit properties. There’s no need for you to wait until January to take advantage of these new loan limits. Stearns will honor the new base conforming loan limits beginning December 4, 2019.
In high-cost areas, where 115% of the local median home value exceeds the baseline loan limit, the new maximum base conforming loan limit for one-unit properties has increased from $726,525 to $765,600. These higher limits are set for individual counties and can be viewed on the 2020 conforming loan limit map. Alaska, Hawaii, Guam, and the U.S. Virgin Islands will also receive the maximum baseline loan limit of $765,600 for one-unit properties in 2020.
Here are more details of the 2020 conforming home loan limits:
Number of Units
Maximum Base Conforming Loan Limits for Properties NOT in Alaska, Hawaii, Guam, & U.S. Virgin Islands
Maximum Base Conforming Loan Limits for Properties in Alaska, Hawaii, Guam, & U.S. Virgin Islands
Want to check out the new FHFA loan limits in your county? Click here to see the 2020 Conforming Loan Limits map.
To learn how the increased conforming home loan limit may help you to finance a home purchase or refinance, contact a Stearns mortgage professional.
- Nov 29, 2019