The Federal Housing Finance Agency announced the new limits for 2019. Fannie Mae and Freddie Mac will increase the maximum loan limits for 2019 to $484,350. If you are buying in a high cost area (not Minnesota), the ceiling limit will be $726,525.
This is an increase of 6.9% over the 2018 loan limit. It has been $453,100 in 2018. Per the FHFA’s seasonally adjusted, expanded-data home price index (HPI), property values increased 6.9% between the third quarters of 2017 and 2018. In 2017 during the same period, property values increased 6.8%. 2018 had the first loan limit increase in several years.
Typically conforming loans are cheaper than jumbo loans – but not always. Usually there are more programs available for conforming loans and they are usually easier to qualify for.
This should help home buyers that are looking in that $450-600,000 price range – especially those that don’t want to put 20% down.
These new numbers are effective with loan applications taken on or after January 1, 2019.
Leslie Vanderwerf, NMLS ID#335509, American Mortgage & Equity Consultants, Inc., An Equal Housing Lender, NMLS#150953 – Email – Website
