New 2019 mortgage limits announced for Fannie Mae and Freddie Mac

2019 mortgage limits rise for many in 2019

The Federal Housing Finance Agency (FHFA) is raising Fannie Mae and Freddie Mac home loan limits to $484,350 in 2019.

The agency reviews its so-called “conforming loan” limit each year and adjusted as necessary to move with average home prices in the US. The 2019 mortgage limit represents a 6.9 percent increase over 2018’s limit of $453,100.

Higher 2019 mortgage limits apply in many areas

The $484,350 figure is the lowest limit and applies to much of the country. The agency applies this limit whenever it equals or exceeds 115 percent of the median home price in the area.

In areas with more expensive housing, higher limits apply, up to 150 percent of the baseline amount, or $726,520. Alaska, Hawaii, Guam, and the U.S. Virgin Islands have different limits — 2019 for them is a ceiling of $726,525. The FHFA reported that most of the higher-priced areas will have higher loan limits in 2019.

Higher limits apply for multi-unit properties

The limits described above apply to single-unit properties. If you purchase a duplex, triplex or four-plex, you’ll get a much higher mortgage limit.

The new limits are effective as of January 1, 2019. The Federal Housing Administration (FHA) and the VA are expected to adopt the same loan limits for 2019.