2020 Conforming Loan Limits for Fannie Mae and Freddie Mac

The 2020 conforming loan limits were announced by the Federal Housing Finance Agency (FHFA) on November 26, 2019.  Effective January 1, 2020 the new conforming loan limit for a single-family one-unit will be $510,400.  This is an increase from the 2019 limit which was $484,350 and the 4th straight year that FHFA has increased the conforming loan limits. 

For a very long period of time, the baseline loan limit was $417,000 and it increased in 2017 to $424,100…in 2018, it went to $453,100…in 2019, it went to $484,350 & in 2020 it will be $510,400 for a single-family one-unit.

What is a Conforming Loan Limit?

The Federal National Mortgage Association (FNMA) also know as, Fannie Mae and Federal Home Loan Mortgage Corporation (FHLMC) also know as Freddie Mac are sources of financing home loans.  Loans offered by Fannie Mae and Freddie Mac are sometimes are called conforming loans or conventional loans.  The term ‘conforming’ simply refer that the home loan follows the guidelines set forth by Fannie Mae and Freddie Mac hence, they conform to their guidelines.

What is a Single-Family One-Unit?

A single-family one-unit could be a Single-Family Home, Condominium or Townhouse. The 2020 conforming loan limits are $510,400

The conforming loan limits have also increased for multi-family homes.  Simply put, a multi-family home that has more than one unit and can house more than one family.  For residential financing that max units would be 4.  

Why the increase in Conforming Loan Limits?

The Housing and Economic Reform Act of 2008 established a baseline loan limit of $417,000. The baseline was not allowed to increase until pre-decline values were reached…this happened in 2017. The FHFA looks at the 3rd Quarter of 2018 vs the 3rd Quarter of 2019…their data reflects home prices increased 5.38% hence, the baseline loan limit is increased. 


If you or someone you know has questions about the 2020 conforming loan limits or about the unique mortgage solutions offered by the Martini Mortgage Group at Benchmark Mortgage simple call (919) 238-4934.

Kevin Martini

Kevin Martini | NMLS ID 143962 | Senior Mortgage Strategist & Branch Manager | Martini Mortgage Group at Benchmark Mortgage | Ark-La-Tex Financial Services, LLC NMLS ID 2143 | 223 S West Street, Suite 900 Raleigh, NC 27603 | (919) 238-4934 | www.KevinMartini.com | Kevin@KevinMartini.com | Equal Housing Opportunity