Conforming loan limits rise (again!)

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For the third year in a row, conforming loan limits are increasing.

  • In 2017, the limit increased from $417,000 to $424,100.
  • In 2018, the limit increased to $453,100.
  • In 2019, the new conforming loan limit will be $484,350.

Over three years, the max limit has increased by roughly 16%. This is quite a change as the limit stayed at 417,000 from 2006-2016. One thing though, I gotta say, what is the deal with no rounding up or down?!? I think it would be a lot easier to just say $453,000 or $484,000. Is the extra $350 going to make that big of a difference? Oh well…

Why the increase? Conforming loan limits are set by the Housing and Economic Recovery Act passed in 2008. This set the baseline loan limit of $417,000, and stated this baseline cannot increase until home prices return to pre-housing decline levels. With home prices still on the rise across the country, it is fitting the limit increased. Now a home buyer can purchase a $500,000 with roughly a 3% down payment. This opens up more homes for buyers who have stable jobs/strong income, but may be lacking in assets for a larger down payment. Congratulations!

We can also expect FHA mortgage limits to rise too. Currently for metro Atlanta, the limit is $359,950 (again, round up. Is $50 going to make that big of a difference :-). If we see a similar increase in 2019 as we did in 2018, expect the new FHA loan limit in metro Atlanta to be roughly $385,000. Expect a new blog post once FHA makes the official announcement.

Higher loan limits are great for consumers as housing prices continue to rise due to demand and low inventory levels. Looking to buy a new home in the new year? Is that home in Georgia? If yes, contact me today. I can get you prequalified in a matter of minutes and on your way to making an offer in no time!

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One Response to “Conforming loan limits rise (again!)”

  1. New FHA max loan limit | The Mortgage Blog Says:

    […] as conforming loan limits rose again this year, the maximum loan amount for FHA loans got a bit higher […]

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