Conventional, VA and USDA Mortgage Loan Limits have been increased for the new year. On November 26, 2019, the Federal Housing Finance Agency (FHFA) announced that the 2020 conforming loan limits for one-unit property mortgages acquired by Fannie Mae and Freddie Mac will increase nationwide from $484,350 to $510,400. Additionally, due to the underlying formula, the maximum limit in high-cost areas will increase to $765,600 (from $726,525). PRMG is taking mortgage applications at the new limits effective immediately with closings after December 16, 2019.
- 1 Unit: $510,400
- 2 Unit: $653,550
- 3 Unit: $789,950
- 4 Unit: $981,700
VA Loans: As announced previously by VA in Circular 26-19-30 (which provides interim guidance on implementing “The Blue Water Navy Vietnam Veterans Act of 2019”) the conforming loan limit cap on guarantees was removed for Veterans with full entitlement. For Veterans who have previously used entitlement and the entitlement has not been restored, the maximum amount of guaranty entitlement available to the Veteran (for a loan above $144,000) is 25 percent of the conforming loan limit reduced by the amount of entitlement previously used (not restored) by the Veteran. The new guaranty requirements apply for loans closed on or after January 1, 2020.
As a reminder, Veterans are able to use their VA Home Loan Guaranty benefit regardless of loan amount, but in order to purchase homes with loan amounts above the conforming loan limits, Veterans with partial entitlement may be required to make a down payment on amounts in excess of the conforming loan limit. Regardless of full or partial entitlement, the VA guaranty plus any required down payment must total 25% of the loan amount.
USDA
For all loans locked on or after January 1, 2020, the max loan amount will be the 2020 conforming high balance limit.
Florida Mortgage Experts 