2020 Conforming Loan Limits

Last week, the Federal Housing Finance Agency (FHFA) announced new conforming loan limits for Fannie Mae and Freddie Mac. 

In 2020, the maximum conforming loan limit will increase to$510,400 for most of the United States. This is an increase of the $484,350 loan limit in 2019.

The Housing and Economic Recovery Act (HERA) requires baseline conforming loan limits to be adjusted every year, in order to reflect the change in the average U.S. home price. According to the third quarter House Price Index report, home prices have risen 5.38%, on average. The baseline loan limit increased by the same percentage. 

From 2006 to 2016, the conforming loan limit did not increase at all, remaining at $417,000 for an entire decade. For the past four years, the baseline limit has increased steadily and is now almost $100,000 higher than in 2016. 

Here are conforming loan limits from 2006-2020:

Year Conforming Loan Limit (for most of U.S.)
2006-2016 $417,000
2017 $424,100
2018 $453,100
2019 $484,350
2020 $510,400

For a breakdown of 2020 conforming loan limits by county, click here

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