Conforming Loan Limits have raised FINALLY for OC and LA!
The Federal Housing Finance Agency (FHFA) announced on Tuesday that it would be increasing the conforming loan limits on mortgages to be acquired by Fannie Mae and Freddie Mac for the fourth consecutive year.
For areas that generally feature higher-than-average home values, defined as places where median home values exceed 115% of the baseline, FHFA has set a higher maximum figure of $765,600 for 2020, up from 2019’s figure of $726,525.
“As a result of generally rising home values, the increase in the baseline loan limit, and the increase in the ceiling loan limit, the maximum conforming loan limit will be higher in 2020 in all but 43 counties or county equivalents in the U.S.,” FHFA said in an announcement of the new loan limits.
FHFA does not have authority over the lending limits tied to reverse mortgages; however, the Federal Housing Administration (FHA) has typically aligned them with the new Fannie and Freddie limits in previous years. Last year, the loan limit handed down by the Department of Housing and Urban Development (HUD) for federally backed reverse mortgages in 2019 was $726,525, matching FHFA’s aforementioned high-cost limit for that same year.
This means to you that possibly waiting until 2020 for that refi or purchase will be optimal to maximize your long term savings.
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