Increased Loan Limits for Conventional Mortgages Announced for 2019
The Federal Housing Finance Agency (FHFA) has announced that the maximum Conforming loan limits for Fannie Mae and Freddie Mac mortgages will increase effective January 1, 2019. Fannie Mae and Freddie Mac are the two agencies that back up what we know as Conventional Mortgages. This announced increase raises the standard maximum loan limit for Conventional Mortgages to $484,350 for one unit properties in most of the United States. This new level of $484,350 represents a significant increase from the previous maximum Conventional limit of $453,100. For areas that are “high cost”, the limit was increased to $726,525 for a one unit property.
These levels are adjusted annually and they correspond with the measured 6.9% increase in home prices over the course of the last year.
How do these new loan limits affect mortgages in Pennsylvania?
All of Pennsylvania is eligible for this increase. Almost all of Pennsylvania falls under the standard limit of $484,350 for a one unit property. For a two unit property the new maximum loan amount is $620,000; for a three unit property $749,650; and for a four unit property $931,600.
There is one exception. Pike County is designated as part of the Metropolitan Statistical Area of New York City and therefore is included as a high cost area. The new maximum loan amount for a one unit property in Pike County is $726,525; for a two unit property $930,300; for a three unit property $1,124,475; and for a four unit property $1,397,400.