It’s that time of the year again. On November 26, 2019 the Federal Housing Finance Agency (FHFA) announced the new adjusted 2020 loan limits. With these adjustments, most of the U.S. counties will see an increase, while 43 counties will remain unchanged. Loan limits did not decrease anywhere in the U.S. or its territories.
For Contiguous States, District of Columbia, and Puerto Rico the maximum conforming loan limits for 2020 are as follows:
For Alaska, Guam, Hawaii, and the U.S. Virgin Islands the maximum conforming loan limits for 2020 are as follows:
For Contiguous States, District of Columbia, and Puerto Rico the maximum *High-Cost Area loan limits for 2020 are as follows:
*Note: several states (including Alaska, Hawaii, Guam, Puerto Rico and the U.S. Virgin Islands), do not have any high-cost areas in 2020. Click here to view the full list of loan limits by counties.
FHFA data shows home prices have increased by 5.38% over the past year (third-quarter 2018 to third-quarter 2019). This percentage is used to calculate the new maximum conforming loan limits. To calculate for high-cost areas, the conforming loan limits have been increased by 150%.
The new loan limits will apply to loans delivered after the first of the year. In addition to the FHFA announcement, you can also view the Freddie Mac announcement and the Fannie Mae matrix.
In regard to government entities, FHA announced their new loan limits on December 3, 2019. VA has not yet announced their new loan limits, they align their loan limits with the FHFA loan limits, while FHA loan limits are calculated differently. FHA’s lower conforming loan limits are set at 65% of the FHFA’s conforming loan limits, and the high-cost areas are set at 150% of FHFA’s conforming loan limits. FHA’s new loan limits will be effective with case numbers assigned on or after January 1, 2020. VA should be making their announcement by mid-December and you can check their website for updates.
If interested in viewing the historical loan limits chart, and exploring the history of how loan limits were developed, head to the Conforming Loan wiki page.