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Loan Limits to Rise in DC Area For 4th Straight Year

  • December 3rd 2019

by UrbanTurf Staff

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Shortly before Thanksgiving, the Federal Housing Finance Agency (FHFA) announced that it would increase mortgage loan limits for 2020. This will allow Fannie Mae and Freddie Mac to acquire mortgages of up to $510,400, up from $484,350 in 2019 for a single dwelling unit. This will be the fourth year in a row that the agency will raise limits. 

For the immediate DC area, the loan limits will increase from $726,525 for a single dwelling unit to $765,600. The limit for a two-unit building is $980,325, and it is respectively $1,184,925 and $1,472,550 for three- and four-unit buildings.

While Government Sponsored Enterprises (GSEs) like Fannie Mae and Freddie Mac guarantee a great deal of mortgages nationwide, often at lower costs and with more favorable lending terms, they are legally bound to only accept loans of a certain amount. The increased loan limits make GSE loan underwriting more accessible to a larger pool of homebuyers.

See other articles related to: conforming loan limits, loan limits

This article originally published at http://dc.urbanturf.production.logicbrush.com/articles/blog/loan-limits-to-rise-in-dc-area-for-4th-straight-year/16205.

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