HUD 2020 Loan Limits On FHA Loans Increases To $331,760

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This ARTICLE On HUD 2020 Loan Limits On FHA Loans Increases To $331,760 Was PUBLISHED On December 4th, 2019

What are HUD 2020 Loan Limits On FHA Loans Increases To $331,760

As expected, HUD, the parent of FHA, has increased FHA Loan Limits to $331,760 for most counties in the U.S.

  • HUD 2020 Loan Limits increased for four years in a row
  • Part of the HUD 2020 Loan Limits increase is due to increasing home prices
  • The U.S. Department of Housing and Urban Development (HUD) normally follows the Federal Housing Finance Agency (The FHFA) when the FHFA increases conforming loan limits
  • The FHFA increased 2020 Conforming Loan Limits last week to $510,400
  • The lower loan limits on conforming and FHA loans are a hurdle for homebuyers when shopping for a home during a hot housing market
  • The VA will no longer have a maximum loan limit starting January 1st, 2020

In this article, we will cover and discuss the breaking news on HUD 2020 Loan Limits On FHA Loans Increases To $331,760.

Breaking News On HUD 2020 Loan Limits Being Increased

What are Breaking News On HUD 2020 Loan Limits Being Increased

Below is the breaking news announcement by HUD released on Tuesday, December 4th, 2019:

Today, the Federal Housing Administration (FHA) published Mortgagee Letter 2019-19, 2020 Nationwide Forward Mortgage Limits, which provides the maximum mortgage limits for FHA-insured Title II forward mortgages. These new loan limits are effective for case numbers assigned on or after January 1, 2020, through December 31, 2020.  This year, the change in the national median home price increased the Federal Housing Finance Agency (FHFA) loan limits. Therefore, FHA’s “floor” and “ceiling” loan limits will increase for Calendar Year (CY) 2020, to $331,760 and $765,600, respectively, for a one-unit property.

Below is a chart that lists the 2020 Loan Limits On One To Four Unit Residential Homes and the High-Balance Loan Limits on FHA Loans:

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There are certain areas in the country where home prices are substantially higher than in regular areas. These areas are labeled as high-cost areas. FHA Loan limits on high-cost areas are higher than the rest of the United States. Alaska, Hawaii, Guam, and the U.S. Virgin Islands have higher FHA loan limits than the rest of the United States due to higher home prices. There are many counties in California where it is considered high-cost areas.

HUD Breaking News Announcement On Increasing Loan Limits On FHA Loans

What is HUD Breaking News Announcement On Increasing Loan Limits On FHA Loans

Below is the breaking news by HUD on the new changes and updated loan limit increase starting January 1st, 2020:

In CY 2020, nearly all U.S. counties will have an increase in forward loan limits; however, due to changes made to the makeup of certain Metropolitan Statistical Areas (MSAs) by the Office of Management and Budget, 11 jurisdictions will see a loan limit decrease from the CY 2019 levels. To enable mortgagees to more easily identify areas with loan limit increases or decreases, FHA has published a separate list of these jurisdictions. Mortgagees may view these lists — along with lists that can be sorted by state, county or MSA or by calendar year — on the Maximum Mortgage Limits web page.

Rising Home Prices

This breaking news of HUD increasing FHA Loan Limits to $331,760 for 2020 is the fourth consecutive increase. Last week, the Federal Housing Finance Agency has announced that 2020 Conforming Loan Limits will increase to $510,400. The FHFA has increased conventional loan limits for four years in a row. HUD normally follows FHFA’s lead when it comes to raising FHA Loan Limits. The increase of FHA Loan Limits for 2020 is a great benefit for homebuyers. This holds true due to a rising home prices and competitive housing market.

Useful Online Links Pertaining To FHA Mortgages And Updates To Agency Guidelines

Quick Links To HUD’s Website:

View Mortgagee Letter 2019-19 by HUD and all other Mortgagee Letters at the following links:

View the online or PDF versions of the SF Handbook at:

View CY 2020 forward mortgage limits information at:

FHA Loan Limits By County And State

FHA mortgage limits by county, state, or MSA at:

A complete listing of FHA loan limits by the calendar year at: http://www.hud.gov/pub/chums/file_layouts.html

Jurisdictions with decreases in loan limits:

https://www.hud.gov/sites/dfiles/SFH/documents/2020jurisdict_w_decreases.pdf

Jurisdictions with increases in loan limits:

Maximum Mortgage Limits web page at:

2020 Home Equity Conversion Mortgage (HECM) Loan Limits

2020 Nationwide Home Equity Conversion Mortgage (HECM) Limits

Below is the press release by HUD on HECM:

Today, the Federal Housing Administration (FHA) published Mortgagee Letter 2019-20, 2020 Nationwide Home Equity Conversion Mortgage (HECM) Limits, which provides the Calendar Year (CY) 2020 maximum claim amount for FHA-insured traditional HECM, HECM for purchase, and HECM-to-HECM refinances. The maximum claim amount for FHA-insured HECMs for all areas, including Alaska, Hawaii, Guam, and the U.S. Virgin Islands, in CY 2020, will be $765,600; 150 percent of Federal Home Loan Mortgage Corporation’s (Freddie Mac) national conforming limit of $510,400. This limit is applicable for case numbers assigned on or after January 1, 2020, through December 31, 2020. For additional details, refer to Mortgagee Letter 2019-20.

Useful HECM Online Resources

The maximum CY 2020 claim amount for FHA-insured HECMs will be included in a future SF Handbook release.

Quick Links

View Mortgagee Letter 2019-20 and all other Mortgagee Letters at:

Maximum FHA HECM Loan Limits

What are 2020 HECM Loan Limits

Reverse mortgages are becoming more popular today than ever before. Reverse mortgages are equity-based mortgage loans. What this means is that homeowners need equity to qualify for reverse mortgages. Borrowers need to be at least 62 years old to qualify. The older the homeowner is, the higher the loan to value requirement.

View CY 2020 HECM limit attachments:

FHA mortgage limits by county, state, or MSA at:

A complete listing of FHA loan limits by the calendar year at:

Maximum Mortgage Limits web page at:

Resources By HUD

What are Resources By HUD

Contact the HUD FHA Resource Center for more mortgage information about the upcoming changes on FHA Loans and loan limit increases:

Visit HUD’s online knowledge base to obtain answers to frequently asked questions 24/7 at:

E-mail the FHA Resource Center at:

Emails and phone messages will be responded to during normal hours of operation, from 8:00 AM to 8:00 PM (Eastern), Monday through Friday, on all non-Federal holidays. Or call 1-800-CALL-FHA (1-800-225-5342). Persons with hearing or speech impairments may reach this number by calling the Federal Relay Service at 1-800-877-8339.

We hope our viewers at Gustan Cho Associates will want to continue receiving information from HUD. HUD safeguard their lists and do not rent, sell, or permit the use of our lists by others, at any time, for any reason.

4 Comments
  1. William Woodward ll says

    Can I apply with crazy credit card debt

    1. Gustan Cho, NMLS 873293 says

      Yes. We will use the minimum monthly payments on your credit cards to calculate debt to income ratios

  2. ngochana says

    want to find out

    1. Gustan Cho, NMLS 873293 says

      Conforming loan limits is capped at $510,400 and FHA loan limits are capped at $331,700 for 2020. There is no maximum loan limit caps on VA loans for 2020.

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