FHFA Increases Conforming And High Balance Loan Limits For 2019

This BLOG On FHFA Increases Conforming And High Balance Loan Limits For 2019 Was PUBLISHED On November 27th, 2018

FHFA Increases Conforming And High Balance Loan Limits For 2019

Conventional Loans are the most popular loan program in the United States.

  • Housing prices have been skyrocketing in all areas of the U.S. despite mortgage rates being at the highest level since 2008
  • Many home buyers who qualified for conventional loans could not purchase homes since the maximum conforming loan limits were capped at $453,100

In this article, we will cover and discuss FHFA Increases Conforming And High Balance Loan Limits For 2019.

Federal Housing Finance Agency And Conforming Loans

The Federal Housing Finance Agency (FHFA) is the regulatory agency that regulates Fannie Mae and Freddie Mac and sets conforming loan limits on conventional loans:

  • FHFA increases conforming and high balance loan limits for 2019 from $453,100 to $484,350 effective January 2019
  • Great News for borrowers is Gustan Cho Associates will honor the higher $484,350 loan limit effect immediately

Conventional borrowers can close on their $484,350 conventional loans in 2018 and not have to wait until 2019.

FHFA Increases Conforming And High Balance Loan Limits Nationwide

FHFA Increases Conforming And High Balance Loan Limits Nationwide

The Federal Housing Finance Agency announced today that conventional loan limits purchased by mortgage giants Fannie Mae and Freddie Mac will be increasing from $453,100 to $484,350 nationwide.

  • FHFA Increases Conforming And High Balance Loan Limits is the third conforming loan limit increase in 3 years
  • Every year for the past three years, FHFA has been increasing conforming loan limits due to increasing home values
  • The FHFA Conforming Loan Increase marks the third time it has increased loan limits since 2006

The high balance loan limit of $679,500 will be increased to $726,525:

  • This means a 150% over the traditional conforming loan limit of $484,350

FHFA Increases Conforming And High Balance Loan Limits Due To Spike In Home Prices

The loan limit for owner occupant single-family properties will now be capped at $484,350 from $453,100 in 2018.

  • Home prices had an average increase of 7.0% in the past 12 months
  • 47 counties in the United States are classified as high balance loan limits
  • VA Loans normally follow Conventional Lending Guidelines
    • VA Loans will follow Conforming Loan Limits
    • This also includes VA High Balance Loans

Gustan Cho Associates is honoring the new increased loan limits effective tomorrow. That’s an increase from $453,100 to $484,350 for regular conventional loans and from $679,650 to $726,525 for conventional high balance loans.

Take Advantage Of Higher Conforming Loan Limits Today And Not Wait Until New Year

Take Advantage Of Higher Conforming Loan Limits Today And Not Wait Until New Year

Don’t wait for the New Year to qualify for conforming loans. Start the mortgage process tomorrow, November 28th and close before the holidays. Even though the FHFA announced the conforming loan limits will be increasing starting January 1, 2018, Gustan Cho Associates are letting you submit and close your high balance loans now, no need to wait. The increase in conforming loan limits is great news. HUD, the parent of FHA, normally follows loan limit increases by FHFA. We will see what HUD loan limit increases will be in the coming days.

To qualify contact us at Gustan Cho Associates Mortgage Group at 262-716-8151 or text us for faster response. Or email us at gcho@gustancho.com. Our licensed and support personnel team are available 7 days a week, evenings, weekends, and holidays.

9 Comments
  1. Mary Gaskins

    Looking to obtain FHA financing. I do have some collections but I believe with an A/E finding the 5% will not be a problem. I am still actively paying off debts from 2017 when I was in a bad accident. My current scores based on Experian, Transunion, and Equifax are 584, 600, 648.

  2. Taylor McCaan

    I am a huge fan of Mr. Gustan Cho and the Gustan Cho Associates website. Hello, I have a credit score somewhere in the 500s and need an FHA loan pre approval letter to purchase a home. I am targeting a home that is $460k and I have ~$150k in liquid assets. I am a W2 employee with an annual income of $150k. The only other debts I have are a car payment and student loans.

  3. Robert Schumacher

    Looking to get more information on this “blanket” loan you’re mentioning on your site.
    I live in Las Vegas, have primary residence, rental condo, 2- condotel units, then in kansas I have an 8-unit multi-family, in Illinois I have a three unit office/retail building.
    Total values approx 1.3m and equity around 650k
    Seeing about creating the portfolio loan with the extra funds used to purchase more properties.
    Thank you for your reply.
    Strangely enough, I’ve seen very attractive properties in a few different states. Illinois, Kansas, Iowa, North Dakota, Indiana.
    Now that I’ve purchased in different states it’s really opened up the options.
    So I assume we’d only be able to use the Kansas/Illinois properties? If so I own the Kansas property outright, value around 130-140k, and the Illinois property is on an owner carry and worth 85-90k and I owe 65k.
    Robert Schumacher

    1. Gustan Cho, NMLS 873293 says

      We are licensed in 18 states. What is your number and I will have my Associate Michelle McCue call you. Michelle McCue is our expert on non-qm loan programs.

      1. Gustan Cho, NMLS 873293 says

        I am always available so feel free to call me if you have any questions. Talk to you soon.

  4. Jennifer Buckaroo says

    Good morning.

    I am not expecting to hear back from you today, but appreciate your time on Monday.
    I am interested in an FHA loan. I have a federal tax lien with a repayment plan that I have been making payments on for almost 2 years. I have the letter accepting the payment plan and bank records to show the payments. Currently, Experian has my credit at 755 and my husband’s at 685. We recently paid off some long-term loans and it seems to have dipped a bit. I was over 800 just a month or so ago. Our payment rating is exceptional. It is the liens that are keeping us from qualifying for a conventional mortgage. We were going to reach out to the IRS this week to see if they will subordinate the lien to a mortgage company so we may buy a house; we are currently renting and the rental market here is insanely expensive. If you can reach out to us to see if you are able to help, we would appreciate it. If you think that you would NOT be able to help, we would appreciate that information also. Thank you for your time. Your website is great and full of a lot of useful information.

    Kind Regards,
    Jenn Buckaroo

  5. Billy Ray

    Looking for a Bank statement mortgage…I am a 1099 contractor.

  6. Juan Chavez

    I am currently in year 3 of a chapter13 and trying to refinance to a lower rate.

  7. Frederico Rodriguez

    I believe my credit score may be a little too low to qualify for VA new home construction loan, but I have low DTI and high income ($190,000).

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