FHFA increases 6.9%!

Loan Limits 2019

Given the rapid run-up in home prices over the last year, it’s no surprise that loan limits will also be going up in 2019. 

The Federal Housing Finance Agency (FHFA) announced that the maximum conforming loan limits for mortgages eligible for acquisition or guaranteed by the two government-sponsored enterprises (GSEs) Freddie Mac and Fannie Mae will be $484,350.

The conforming loan limit as established by the Housing and Economic Recovery Act (HERA) is reviewed each year and adjusted as necessary to reflect the change in the average U.S. home price.   The new limit represents a 6.9 percent increase over the $453,100 limit for 2018, the percentage by which FHFA’s Housing Price Index (HPI) for the third quarter of 2018 increased on an annual basis.

The new limits are effective as of January 1, 2019. The Federal Housing Administration (FHA) and the VA are expected to adopt the same loan limits for 2019.