Con­form­ing Loan Lim­its Go Up for 2019 as Prices Keep Ris­ing

National Mortgage News - - Origination - By Bon­nie Sin­nock

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.

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