The FHFA (Federal Housing Finance Agency) announced last Tuesday that they will raise the base GSE (Government Sponsored Enterprise) conforming loan limit to $484,350 in 2019, up from the current limit of $453,100. After not increasing the maximum conforming loan limits on mortgages to be acquired by Fannie Mae and Freddie Mac for 10 years, the Federal Housing Finance Agency has now increased the conforming loan limit for the third straight year.
This means homebuyers can borrow up to $31,250 more toward their conventional home purchase. The 6.9% increase reflects the change in average U.S. home prices between the third quarters of 2017 and 2018. Additionally, the maximum loan limit will see an increase of up to $726,525 in certain high-cost areas.
The conforming loan limits for Fannie and Freddie are determined by the Housing and Economic Recovery Act of 2008, which established the baseline loan limit at $417,000 and mandated that, after a period of price declines, the baseline loan limit cannot rise again until home prices return to pre-decline levels. But, as the FHFA noted earlier Tuesday, home prices are still on the rise, which necessitates a third straight yearly increase in the conforming loan limit.
For a county-by-county breakdown of the 2019 conforming loan limits, click here.
If you are wondering how this might impact your home search, or your property's sale in the upcoming months, please contact us. We would also be happy to introduce you to a mortgage professional who can answer your loan and financing questions.