Home prices rose 6.9 percent between the third quarter of 2017 and the third quarter of 2018, according to the Federal Housing Finance Agency (FHFA) House Price Index, which means that loan limits will adjust upward next year.
For most of the United States, the maximum conforming loan limit for mortgages acquired by Fannie Mae and Freddie Mac for one-unit properties will rise to $484,350, up from $453,100 in 2018. In high-cost housing markets such as the Washington area, the conforming loan limit will rise to $726,525. Special exceptions are made for houses in Alaska, Hawaii, Guam and the U.S. Virgin Islands for different loan limit calculations.
Buyers who need to finance houses above the loan limit for their area will need to apply for a jumbo loan, which generally has tighter loan approval guidelines and requires a larger down payment.
The maximum conforming loan limit will be higher in 2019 in all but 47 counties in the United States compared with 2018 because of generally rising home prices in most localities.
To check loan limits in a specific area, click here.