On November 26, 2019 the Federal Housing Finance Agency (FHFA) announced an increase in the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2020.
The maximum loan limit for one-unit properties will be $510,400, an increase from $484,350 in 2019. Release.
The decision was based on the recovery of housing prices under the Housing and Economic Recovery Act of 2008 (HERA). They require that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price.
FHFA third quarter 2019 House Price Index (HPI) reported that house prices increased 5.38%, on average, between the third quarters of 2018 and 2019. The baseline maximum conforming loan limit in 2020 will increase by the same percentage.
For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit, the maximum loan limit will be higher than the baseline loan limit.
A list of the 2020 maximum conforming loan limits for all counties and county-equivalent areas in the country can be found here.
Contact your Greenway Mortgage loan officer today for more details about how the increase can impact you.
There's good news in the home financing world: Lower interest rates make financing a home today cost less than it did last year, even though prices continue to rise.
Look at the difference in the monthly principal and interest (P&I) payment with a 5% jump in price:
You can see the market offers a renewed opportunity to buy at a lower cost. Of course, no one knows how long current rate trends will last.
If you or a loved one is ready to purchase, please remember that getting a pre-approval for your home loan is a good first step. We are glad to discuss the markets, the process, and the many available financing options.
Are you ready to get started? Contact us today!
The Federal Housing Finance Agency announced Thursday that it is extending the Home Affordable Refinance Program(HARP) through the end of 2018. The program was set to expire Sept. 30.
HARP was initiated in 2009 to help underwater and near-underwater homeowners refinance their mortgage. Since then, the plan has been extended past its intended expiration several times. In 2015, it was extended to the end of 2016. In 2016 – despite FHFA Director Mel Watt’s warning that the program wouldn’t last forever – it was extended until Sept. 30, 2017, in order to serve as a “bridge” to a new refinance program the FHFA planned to launch in October of 2017.
According to the FHFA, HARP is being extended again because of modifications to its High LTV Streamlined Refinance Program, which was created for borrowers who are current on their mortgage but unable to refinance because their loans’ LTV ratios exceed the maximum limits of Fannie Mae and Freddie Mac. The FHFA said it was extending HARP to “ensure that high LTV borrowers who are eligible for HARP continue to have a refinance option.”
“More than 143,000 homeowners could still benefit from refinancing through HARP,” the FHFA said.
You can continue reading more about the extension here.
Contact us to discuss your situation with one of our loan officers.