Conforming Loan Limits Go Up for 2019 as Prices Keep Rising
The sustained rise in home values will boost Fannie Mae and Freddie Mac’s loan limits to $ 484,350 in 2019, marking the second consecutive year in which it increased by nearly 7%.
The increase in the one-unit limit from
$ 453,100 in 2018 was based on a slightly higher rise in U. S. home prices this year, according to the Federal Housing Finance Agency. The FHFA is the two government-sponsored enterprises’ regulator and conservator.
The average seasonally adjusted home price tracked by the FHFA’s expanded-data home-price index rose 6.9% between the third quarter of 2017 and the third quarter of 2018. A year earlier, the equivalent 12-month rise in the average seasonally adjusted home price was 6.8%, according to the FHFA.
While the $ 484,350 limit will be the baseline for most one-unit properties, the maximum will be higher in certain counties and county equivalents. In those areas, the maximum amount will be $726,525, or 150% of the baseline limit, up from $679,650 in 2018.
To obtain a limit above the national baseline, 115% of the local median home price must be higher than the national baseline loan limit. The baseline loan limits for the two states and the two U. S. terri- tories that have special statutory authority ( Alaska, Hawaii, Guam and the U. S. Virgin Islands) will be $ 725,525, up from $ 679,650. Limits are 50% higher in these areas.