Loan Limits for 2019 Are Increasing
November 27, 2018
In line with the Federal Housing Finance Agency (FHFA) announcement, we're increasing our maximum base conforming and high-cost area loan limits on January 1, 2019.
FHFA's house price index data indicate that house prices increased 6.9 percent, on average, between the third quarters of 2017 and 2018. Therefore, the baseline maximum conforming loan limit in 2019 will increase by the same percentage.
We will purchase mortgages secured by properties not located in designated high-cost areas with original loan amounts up to the following limits:
|Number of Units||Maximum base conforming loan limits for properties NOT in Alaska, Hawaii, Guam & U.S. Virgin Islands||Maximum base conforming loan limits for properties in Alaska, Hawaii, Guam & U.S. Virgin Islands|
For super conforming mortgages secured by properties located in designated high-cost areas, we will purchase mortgages with original loan amounts up to the following limits:
|Number of Units||Maximum loan amount for properties NOT in Alaska, Hawaii, Guam & U.S. Virgin Islands||Maximum loan amount for properties in Alaska, Hawaii, Guam and the U.S Virgin Islands|
*There are no properties in Alaska, Hawaii, Guam and the U.S. Virgin Islands with loan limits higher than the applicable base conforming limits for 2019. As a result, there are no super conforming limits specific to Alaska, Hawaii, Guam or the Virgin Islands for 2019.
We'll update the Freddie Mac Single-Family Seller/Servicer Guide in December to reflect the 2019 loan limits.
Check the Loan Limits for Specific High-cost Areas
As a reminder, actual loan limits for certain high-costs areas, as determined by FHFA, may be lower than the maximum high-cost area limits identified above.
When originating super conforming mortgages, you must check the loan limits for the specific county where the property is located. The 2018 loan limits for high-cost areas are available on the FHFA website.
Originating Mortgages and Taking Out Contracts Before January 1, 2019
We'll update Freddie Mac Loan Product Advisor® on December 1, 2018, so you may begin originating mortgages with the 2019 loan limits immediately. However, mortgages meeting the higher 2019 limits are not eligible for saleto Freddie Mac until on or after January 1, 2019.
- Loan Selling Advisor® will be updated by December 3, 2018. If you plan to take out a cash or guarantor contract in December 2018 for a mortgage with an original loan amount eligible under the 2019 base conforming loan limits, but not under the 2018 loan limits, you must enter a 2019 date for the "Requested Settlement Date" field.