2020 Conforming Loan Limits Increased To $510,400


This Article On 2020 Conforming Loan Limits Increased To $510,400 Was PUBLISHED On November 29th, 2019

2020 Conforming Loan Limits
Gustan Cho Associates

The U.S. economy is booming.

  • Historic records are being broken as days, weeks, and months pass
  • Unemployment numbers hit 3.5% which is at a 50 year low
  • The Dow Jones Industrial Average is hitting new highs every day
  • Lowest unemployment numbers for African Americans, Asians, Hispanic Americans, and women in the history of the United States
  • Lowest mortgage rates since the 2008 Great Recession
  • Highest homeownership ever recorded in history
  • The housing market has never been so strong in the history of the United States
  • Demand for housing has never been this strong
  • There is more demand for homes than inventory
  • Homebuilders are reporting record sales and revenues
  • Homebuilders are selling homes before they are getting final permits and plans approved
  • With a strong housing market with more demand versus inventory comes higher home price
  • The Federal Housing Finance Agency (FHFA) has announced 2020 Conforming Loan Limits increased to $510,400
  • This is the fourth year in a row the FHFA is increasing conforming loan limits due to the hot housing market

In this article, we will cover and discuss the breaking news on 2020 Conforming Loan Limits Increased To $510,400.

Breaking News Of FHFA Increasing 2020 Conforming Loan Limits To $510,400

Breaking News Of FHFA Increasing 2020 Conforming Loan Limits To $510,400

Breaking news of the FHFA increasing 2020 Conforming Loan Limits to $514,400 hit Tuesday, November 26, 2019.

  • This marks four year in a row that the Federal Housing Finance Agency increased conventional loan limits
  • Although the 2020 Conforming Loan Limits increase is not effective until January 1st, 2020
  • Gustan Cho Associates is accepting the 2020 Conforming Loan Limits effective immediately
  • Borrowers do not have to wait until January 1st, 2019 to take advantage of the 2020 Conforming Loan Limits increase to $510,400

Please review the chart below concerning the updated Conforming Loan Limits on one to four-unit properties:


According to the Federal Finance Housing Agency:

The high-cost area loan limits are established for each county (or equivalent) and are published on Fannie Mae’s website and on FHFA’s website.

High-Cost Maximum Loan Limit

The conventional loan limit increase also applies to high-balance loans in high-cost areas:

The maximum Conforming Loan Limits for high-cost areas are outlined in the chart below:

* A number of states (including Alaska and Hawaii), Guam, Puerto Rico, and the U.S. Virgin Islands do not have any high-cost areas in 2020.

Here is what Fannie Mae and Freddie Mac stated on their breaking news press release:

High-cost area loan limits are derived from median home prices estimated by the Federal Housing Administration (FHA) of the Department of Housing and Urban Development (HUD). FHA will permit a 30-day appeals period during which requests for individual area median home price increases will be evaluated. FHFA will issue a subsequent announcement if any individual high-cost area loan limit is increased as a result of the appeals process. Updates resulting from subsequent FHFA announcements will be posted on our website. Loans subject to the high-cost area limits are referred to as high-balance loans and must comply with the high-balance loan requirements described in the Selling Guide. All loan limits apply to the original loan amount of the mortgage loan, not to its balance at the time of purchase by Fannie Mae. Lenders are responsible for ensuring that the original loan amount of each mortgage loan does not exceed the applicable maximum loan limit for the specific area in which the property is located.

When Does This UPDATE Take Place

When Does This UPDATE Take Place

Fannie Mae and Freddie Mac’s updated loan limit increase will be taking effect on January 1st, 2020. However, some lenders like Gustan Cho Associates will honor the 2020 Conforming Loan Limits increase effective immediately prior to the January 1st, 2020 effective date. Contact us at Gustan Cho Associates at 262-716-8151 or text us for a faster response for more information about the effective date. Or email us at gcho@gustancho.com.

2020 Conforming Loan Limits Versus FHA And VA Loans

What are FHA And VA Loans

In general, HUD, the parent of FHA, follows the loan limit increase on conventional loans. Gustan Cho Associates is expecting for HUD to announce a loan limit increase on FHA loans in the coming days and/or weeks. For the past three years, HUD was right behind FHFA when announcing the FHA Loan Limit increase. The VA no longer has a maximum loan limit cap. Earlier this year, President Donald Trump signed a bill eliminating maximum VA Loan Limit Caps on VA loans.

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