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 V | 97.00% | 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.
| Year | Historical Conventional Loan Limits – 1st Mortgages | |||
| Single Family | Two Family | Three Family | Four 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