February 4th, 2019 10:31 AM by Gerald Bliss
New Increased Loan Limits for 2019
The Federal Housing Finance Agency (FHFA) announced the maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2019. In most of the U.S., the 2019 maximum conforming loan limit for one-unit properties have increased to $484,350, from $453,100 in 2018.
Here's some recent activity of the FHFA and its loan limit changes. In 2016, the FHFA increased the conforming loan limits from $417,000 to $424,100. Then, in 2017, the FHFA raised the loan limits from $424,100 to $453,100 for 2018. And now, the FHFA has done it again, increasing the loan limit from $453,100 to $484,350 for 2019.
The Housing and Economic Recovery Act (HERA) requires that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price. The FHFA published its third quarter 2018 House Price Index (HPI) report, which includes estimates for the increase in the average U.S. home value over the last four quarters. According to FHFA's seasonally adjusted, expanded-data HPI, house prices increased 6.9 percent, on average, between the third quarters of 2017 and 2018. Therefore, the baseline maximum conforming loan limits increased by the same percentage at the beginning of 2019.
High-cost area limits
For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit, the maximum loan limit is higher than the baseline loan limit. HERA establishes the maximum loan limit in those areas as a multiple of the area median home value while setting a "ceiling" on that limit of 150 percent of the baseline loan limit. Median home values generally increased in high-cost areas in 2018, driving up the maximum loan limits in many areas. The new ceiling loan limit for one-unit properties in most high-cost areas is $726,525 — or 150 percent of $484,350.
Special statutory provisions establish different loan limit calculations for Alaska, Hawaii, Guam, and the U.S. Virgin Islands. In these areas, the baseline loan limit increased to $726,525 for one-unit properties.
As a result of rising home values, the increase in the baseline loan limit, and the increase in the ceiling loan limit, the maximum conforming loan limit is now higher in 2019 in all but 47 counties or county equivalents in the U.S.
Questions about the 2019 conforming loan limits can be addressed to LoanLimitQuestions@fhfa.gov.
Nationwide High Balance (Non-Jumbo Conventional Loan Option)
Bliss Mortgage offers a High Balance Nationwide Loan Product. It is a variation on a high balance conventional loan. It is underwritten mostly to Fannie Mae guidelines, with the exception of some overlays. This means that some loans that would generally have to go Jumbo can now remain in a high balance product. These loans will have a loan amount that is $1 greater than the county loan limit, up to $726,525.
If you have any questions about mortgage loan limits, general mortgage loan questions, or would like to get pre-approved for a home loan, contact us at firstname.lastname@example.org or call 813-966-1888.
Bliss Mortgage LLC is licensed to originate loans in Florida. If you are in another State and need a residential loan to purchase or refinance a property, please search for an independent loan officer at findamortgagebroker.com.
Gerald BlissMortgage Loan Orignator NMLS# 989582Bliss Mortgage LLCNMLS# 1564092