NWReporter logo
Serving More Than 32,000 Real Estate Professionals in the

December 2018

FHFA unveils increased loan limits for 2019

Loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac in 2019 are increasing for both conforming and jumbo loans. The adjustments were announced in late November by the Federal Housing Finance Agency (FHFA).

In most of the U.S., the 2019 maximum conforming loan limit for one-unit properties will be $484,350, an increase from $453,100 in 2018.

In higher-cost areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit, a higher limit will apply. The new ceiling will be 150 percent of the baseline loan limit.

Three counties in Washington state will have three tiers, with all other having just conforming (up to $484,350) and jumbo (capped at $726,525).

Conforming high  balance
King, Snohomish, PierceUp to $484,350$484,351 - $726,525$726,525
All other counties in WashingtonUp to $484,350

The limits were determined under provisions of the Housing and Economic Recovery Act of 2008 (HERA). That Act requires 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 officials said as a result of generally rising home values, the increase in the baseline loan limit, and the increase in the ceiling loan limit means next year's maximum conforming loan limit will be higher in all but 47 counties or county equivalents in the U.S.

The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks. These government-sponsored enterprises provide more than $6.2 trillion in funding for the U.S. mortgage markets and financial institutions.