This ARTICLE On 2020 Conventional Loan Limits On One To Four Unit Properties Was PUBLISHED On December 5th, 2019

The housing market has never been stronger than it is now due to the strong U.S. economy.

• The Federal Housing Finance Agency often referred to as the FHFA, has increased 2020 conventional loan limits for one to four-unit properties
• The FHFA increased 2020 conventional loan limits to $510,400 due to rising home prices
• Many home buyers are priced out of the market due to increasing home prices
• Due to skyrocketing home prices, the FHFA increased 2020 conventional loan limits to $510,400
• 2020 conventional loan limits for two to four-unit homes also increased
• This also holds true for high-cost areas
• When conforming loan limits increase in single-family homes, two to four-unit loan limits also increase
• HUD, the parent of FHA, also increased 2020 FHA Loan Limits to $331,760

In this article, we will cover and discuss the 2020 Conventional Loan Limits On One To Four Unit Properties.

2020 Conventional Loan Limits Increases Due To High Home Prices

The main reason for the FHFA to increase the conforming loan limits for 2020 is due to high skyrocketing home values.

• The U.S. economy has never been this good
• Unemployment numbers hit 3.5% which is the lowest number in 50 years
• Unemployment hit a historic low for women, Asians, Blacks, Hispanics, and other minority group members
• There are more jobs available in the workforce than qualified workers
• American workers are enjoying high wages
• Homeownership hit a historic high
• FHA, USDA, VA, Fannie Mae, Freddie Mac are lowering agency guidelines to promote homeowners to qualify for their loan programs
• Mortgage companies are coming out with niche loan programs like Non-QM loans and other alternative financing mortgage programs

Below is the table outlining 2020 conforming loan limits on one to four-unit properties;

The above chart shows 2020 conforming loan limits on one to four-unit properties as well as high-balance loans in high-cost areas:

Other Loan Programs Are Following The FHFA Lead

The Federal Housing Finance Agency has increased conforming loan limits for the past four years in a row. The U.S. Housing and Urban Development (HUD) followed the FHFA’s lead and also increased FHA loan limits for the past four years. The increases are due to rising home values and prices. There is no sign of any housing correction in the near future. VA loan limits normally follow conforming loan limits. However, President Donald Trump recently eliminated the maximum VA loan limits on VA loans. Starting January 1st, 2020, there is no maximum VA loan limit caps on VA mortgages.

Non-QM Mortgages And Alternative Financing

Another reason for the hot housing market is due to the fact that mortgage companies have launched non-QM loans. There are no mandatory waiting period requirements on Non-QM loans after foreclosure, deed in lieu of foreclosure, short sale. Non-QM loans have no maximum loan limit caps. Self-employed borrowers can now qualify for bank statement mortgage loans with no income tax required. Non-QM and Bank Statement Mortgage Loans allow borrowers to qualify for a mortgage with no maximum loan limit caps with a 10% to 20% down payment. Retired homebuyers with no steady income but who have substantial assets can now qualify for our Asset-Depletion mortgage program. The housing market is expected to be hot for 2020 without any correction in sight.