These are the 2020 maximum loan amounts for USDA, VA, FHA and Conventional Loans
The maximum loan amounts have increased in 2020! This week’s blog highlights the updated maximum loan amounts for USDA, VA, FHA, and Conventional loans.
Maximum Loan Amounts:
USDA Single Family Guaranteed Rural Home Loan Program
Do USDA Loans have a maximum loan size?
Wait a second, is this a trick question? Nope, it’s true that USDA loans actually have NO loan limits! Since there’s no maximum sales price for a USDA loan, it can be a powerful option. Especially when compared to conventional or FHA loans because they require a minimum down payment.
While there is no maximum USDA loan size, the USDA maximum loan amount is calculated on the applicant’s ability to qualify. Thankfully, USDA income limits were also increased in 2019 This helps home buyers when trying to qualify for those higher-priced homes.
Department of Veterans Affairs
What is the VA maximum loan amount?
The Blue Water Navy Vietnam Veterans Act of 2019 (“the Act”) was signed into law on June 25, 2019 by the President and will apply to all loans closed on or after January 1, 2020.
The Act amends 38 U.S.C. § 3703(a)(1) and expands maximum guaranty amounts for purchase, construction, and cash-out refinance loans greater than the Freddie Mac conforming loan limit in certain circumstances.
In the past, maximum loan limits mirrored the Freddie Mac conforming loan limit, but that is no longer a factor for Veterans who possess their full entitlement. However, the Act does not adjust the maximum amount of guaranty available to Veterans for loans at or below $144,000.
As a quick reminder, the basic entitlement for each eligible Veteran is $36,000 and as a VA approved lender, Metroplex Mortgage Services will walk a Veteran through the steps and help determine how much entitlement is available and what VA loan amount you can qualify for.
Moreover, if a Veteran has previously lost a VA loan through bankruptcy, foreclosure, or a short sale they may still be eligible for a VA “bonus entitlement“. While this can be complicated, please call to discuss your scenario so we can try to help. Remember, minimum income, credit conditions, and meeting sufficient equity requirements will apply.
Conventional Loans (Fannie Mae and Freddie Mac Conforming)
What are the 2020 Fannie Mae and Freddie Mac conforming loan limits?
The 2020 Fannie Mae and Freddie Mac loan limits have been increased by the Federal Housing Finance Agency (FHFA). The previous 2019 general loan limit was $484,350, and has increased to $510,400 for a one-unit property!
While most of our homebuyers and realtors work in general loan limit counties, below is a loan limit comparison chart for one, two, three, and four-unit properties.
For more information go to the Federal Housing Finance Agency (FHFA) announcement for more details.
FHA Loans (Federal Housing Administration)
What are FHA 2020 maximum mortgage amounts?
The FHA has published its 2020 maximum mortgage amounts for forward mortgages with Mortgagee Letter 2019-19 (remember this is the loan amount financed, not the sales price) for both low and high-cost areas which become effective for case numbers assigned on or after January 1, 2020.
The maximum FHA loan amount, for a one-unit property in a low-cost county, has increased from $314,827 in 2019 to $331,760 in 2020!
Additionally, the respective loan amounts have also increased for 2,3, and 4 unit properties that are eligible for FHA financing. Additional details can be found in the full FHA announcement here.
2019 county limits have been updated on FHA’s Mortgage Limits Search Engine. To determine the 2019 limit, select “CY2019” from the Limit Year drop-down menu.
We Are Always Available
If you ever need assistance or have financing questions please use my team as a resource. That’s what we are here for!
Whether it’s for a new pre-qualification or to help with an existing transaction, just call (800)806-9836 Ext. 280 or email SeanS@MPLX.org to discuss your scenario so we can go to work for you!