2020 Mortgage Loan Limits

2020 Loan limits are up from 2019. In fact, they are way up!

This doesn’t come as much surprise, with housing prices continually rising throughout the nation over the past year. With the increase in house prices, it’s important for loan limits to follow suit. This is big news for potential home buyers and homeowners who are looking to refinance in 2020.

Because loan limits have increased in 2020, borrowers don’t have to rely on putting as much of a down payment down on their home, or they now qualify for more home.

2020 Conventional Loan Limits

The Housing and Economic Recovery Act (HERA) required that the baseline conforming loan limit to be adjusted each year for Fannie Mae and Freddie Mac to reflect the current state of the housing market based on average home value.

Conventional, or “conforming” (Fannie Mae and Freddie Mac) loan limits have jumped way up!

For areas in which 115% of the local medium home value exceeds the baseline conventional loan limit, the maximum loan limit will be increased to a “high-cost” limit. There are high-cost areas within the following states: California, Colorado, Connecticut, District of Columbia, Florida, Georgia, Idaho, Maryland, Massachusetts, New Hampshire, New Jersey, New York, North Carolina, Pennsylvania, Tennessee, Utah, Virginia, Washington, West Virginia, Wyoming.

• 2020 Conventional Limit: $510,400
• 2020 Conventional High-Cost Limit: $765,600
• 2019 Conventional Limit: $484,350
• 2019 Conventional High-Cost Limit: $726,525

2020 FHA Loan Limits

Every year the FHA is required by the National Housing Act to set single-family forward loan limits at 115% of the median house prices on a per-county basis. The FHA also sets a “high-cost” limit in areas where the median home price is more than 115% than the local average.

Below are the FHA loan limits for Maricopa County in Arizona. You can look up the limits for your specific county here.

• 2020 FHA Limit: $331,760
• 2020 FHA High-Cost Limit: $765,600
• 2019 FHA Limit: $314,827
• 2019 FHA High-Cost Limit: $726,525

2020 VA Loan Limits

The VA loan guidelines went over a huge overhaul for 2020. Effective Jan 1, 2020 there will be no loan limit for VA loans. This means you will be able to go as high as $1M+ with as little as $0 down with qualifying VA entitlements!

There will also be a change in the VA funding fees in 2020 vs 2019 as they will be increasing slightly.

• 2020 VA Limit: No Limit*
• 2020 VA High-Cost Limit: No Limit*
• 2019 VA Limit: $484,350
• 2019 VA High-Cost Limit: $726,525

NOTE*: This is not intended to be a permanent change. As of the date of this posting, this is only supposed to be in effect until October 1, 2020. It may or may not get extended.