Exciting News for Conforming Loans in 2019

Fannie Mae and Freddie Mac are restricted by law to purchasing single-family mortgages with origination balances below a specific amount, known as the “conforming loan limit.” Loans above this limit are known as jumbo loans.



Fannie Mae and Freddie Mac have announced that base loan limits for conventional loans have increased. The new loan limits will be effective for loans closed on or after December 10, 2018.  A permanent formula was established under the Housing and Economic Recovery Act of 2008 (HERA).   The past change in the loan limits have increased from$33,000 in the early 1970s to $417,000 for 2006-2008, with limits 50 % higher for four statutorily-designated high-cost areas: Alaska,  Hawaii, Guam, and the U.S. Virgin Islands

High-Cost Area mortgages are mortgages originated using higher maximum loan limits that are permitted in designated high-cost areas. These higher loan limits are intended to provide lenders with much-needed liquidity in the highest cost areas of the country while lowering mortgage costs for borrowers located in these areas. These areas are located on the FHFA’s website Loan Limits map.



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Information provided by:

The Federal Housing Finance Agency (FHFA)

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