The Federal Housing Finance Agency (FHFA) and The Federal Housing Administration (FHA) have announced the loan limits for Conventional Conforming and FHA loans have been increased for 2020.
FHFA announced the baseline conventional conforming loan limit for one-unit properties closed on or after January 1, 2020 will be $510,400 an increase of $26,050. The new ceiling loan limit for one-unit properties in most high-cost areas will be $765,600.
The 2020 FHA loan limit for most of the country will be $331,760, an increase of nearly $17,000 over 2019’s loan limit of $314,827. That loan limit is determined as a percentage of the national conforming loan limit for Fannie Mae and Freddie Mac.
FHA’s 2020 minimum national loan limit, or “floor,” of $331,760 is 65% of the national conforming loan limit of $510,400. This floor applies to “low-cost areas,” which are counties where 115% of the median home price is less than the floor limit. For those approximately 70 “high-cost” counties, the FHA’s 2020 loan limit will be $765,600, an increase of nearly $40,000 over 2019’s total of $726,525.
Contact a Wallick & Volk Mortgage Advisor for exact loan limits in the county where you want to buy your new home. www.wvmb.com.