Federal Loan Limits Increased in 2020

Effective Jan. 1, 2020

 Financing and Credit, Department of Housing and Urban Development, FHA Programs

Published Monday, December 23, 2019

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In November, the Federal Housing Finance Agency (FHFA) published the 2020 conforming loan limits for Freddie Mac and Fannie Mae. The national limit will increase to $510,400 from $484,350 in 2019. In high-cost areas, the limit will go up to $765,600, from $726,525.

The loan limits are based on FHFA’s Housing Price Index, which increased by 5.38% since last year. Therefore, the baseline maximum conforming loan limit in 2020 will increase by the same percentage. The new limits take effect on Jan 1, 2020. Look up the loan limits in your area via the FHFA.

The Federal Housing Administration (FHA) also published its loan limits for 2020 and nearly every county in the country saw an increase. The high-cost limit is the same as the GSE limit at $765,600. The FHA floor rose to $331,760.

The new limits are effective Jan 1, 2020, to Dec. 31, 2020. For more information, view the FHA's Mortgagee Letter 2019-19, which includes links to all the limits. Look up the loan limits in your area via FHA Mortgage Limits. Be sure to specify 2020 when using the FHA Mortgage Limits tool.