For the fourth year in a row, the Federal Housing Agency has announced an increase in the maximum conforming loan limits for mortgages eligible to be purchased by Fannie Mae and Freddie Mac.  For 2020, the maximum conforming loan amount for a Single Family home in our area will be $510,400.

Giving the continuing run-up in home prices over the past several years, this is not unexpected.  This is because the maximum loan amount is reviewed each year and adjusted to reflect changes in the average U.S. home price.  The Fannie Mae and Freddie Mac conforming loan limit is intended to be adequate for the financing of a wide variety of homes for the financing needed for the majority of homes purchased by families.

Jumbo Mortgages are those that exceed the conventional conforming loan limit – so the smallest Jumbo loan in our area would be for $510,401.  Please contact me if you have questions about Jumbo Mortgages.

This chart shows various down payment options that maximize the 2020 conventional conforming loan limit:

Purchase Price$526,186$537,263$567,111$600,471$638,000
Down Payment %3%5%10%15%20%
Down Payment$15,786$26,863$56,711$90,071$127,600
L T V97.00%95.00%90.00%85.00%80.00%
Loan Amount$510,400$510,400$510,400$510,400$510,400

The above limits apply to one-unit properties.  A list of limits for two-to-four units properties and specific limits for all counties and county-equivalent areas is here.

You can read an article about the new limits by clicking on this link.

This chart shows conforming loan limits for 1st lien mortgages going back to 1980, as pertains to our area of North Carolina.

YearHistorical Conventional Loan Limits – 1st Mortgages
Single FamilyTwo FamilyThree FamilyFour Family
2020$510,400$653,550$489,950$981,700
2019$484,350$620,200$749,650$931,600
2018$453,100$580,150$701,250$871,450
2017$424,100$543,000$656,350$815,650
2016$417,000$533,850$645,300$801,950
2015$417,000$533,850$645,300$801,950
2014$417,000$533,850$645,300$801,950
2013$417,000$533,850$645,300$801,950
2012$417,000$533,850$645,300$801,950
2011$417,000$533,850$645,300$801,950
2010$417,000$533,850$645,300$801,950
2009$417,000$533,850$645,300$801,950
2008$417,000$533,850$645,300$801,950
2007$417,000$533,850$645,300$801,950
2006$417,000$533,850$645,300$801,950
2005$359,650$460,400$556,500$691,600
2004$333,700$427,150$516,300$641,650
2003$322,700$413,100$499,300$620,500
2002$300,700$384,900$465,200$578,150
2001$275,000$351,950$425,400$528,700
2000$252,700$323,400$390,900$485,800
1999$240,000$307,100$371,200$461,350
1998$227,150$290,650$351,300$436,600
1997$214,600$274,550$331,850$412,450
1996$207,000$264,750$320,050$397,800
1995$203,150$259,850$314,100$390,400
1994$203,150$259,850$314,100$390,400
1993$203,150$259,850$314,100$390,400
1992$202,300$258,800$312,800$388,800
1991$191,250$244,650$295,650$367,500
1990$187,450$239,750$289,750$360,150
1989$187,600$239,950$290,000$360,450
1988$168,700$215,800$260,800$324,150
1987$153,100$195,850$236,650$294,150
1986$133,250$170,450$205,950$256,000
1985$115,300$147,500$178,200$221,500
1984$114,000$145,800$176,100$218,900
1983$108,300$138,500$167,200$207,900
1982$107,000$136,800$165,100$205,300
1981$98,500$126,000$152,000$189,000
1980$93,750$120,000$145,000$180,000

Source:

https://www.fhfa.gov/DataTools/Downloads/Pages/Conforming-Loan-Limits.aspx

 

 

Fannie Mae and Freddie Mac – Conventional Conforming Loan Limits Increased for 2020