After a 10 year break in increasing loan limits Fannie and Freddie Mac are once again raising the loan limits for the third strait year. What does this mean for the market and for you? On Tuesday, November 27th the FHFA announced that all around the country loan limits are increasing for Conforming loans. In 2018 the total loan limit was $453,100. The 2019 loan limit will be increasing to 484,350. in all counties except those in Alaska, Guam, Hawaii, and the U.S. Virgin Islands. In those 47 counties, reports show that limits remain unchanged and in no county across the U.S. did the loan limits decrease.
As far as Alaska, Hawaii, Guam and the Virgin Islands go, the general loan limits increased significantly, which resulted in no high-cost areas in those states and territories.
Here is a general guide for unit numbers, just in case you want to buy a multi-unit complex in the coming year.
# of Units Maximum Loan
3 $749, 650
4 $931, 600
Why raise the loan limits?
Well, according to reports house prices increased 6.9% between the third quarters of 2017 and 2018, so the FHFA has decided to make the same change to the loan limits in the coming year.