FHA 2020 Loan Limits

December 5, 2019

 

 As expected, FHA published its 2020 loan limits yesterday. Mortgagee Letter 2019-19 includes links to all the limits, with the high-cost limit the same as the GSE limit - at $765,600. The FHA floor (the lowest FHA limit) also rose to $331,760. Nearly every county in the country saw an increase in their loan limits.

The way that loan limits are calculated, all counties within the same Metropolitan Statistical Area (MSA) benefit from the highest limit in that MSA. Over the last year, the government changed some definitions of MSAs. The result is that 11 counties, who were removed from their nearest MSA, will see decreases in their loan limits. A list can be found here.

Communities that wish to contest their loan limit only have 30 days to do so by contacting by providing the Santa Ana Homeownership Center with sufficient housing sales price data, listing one-family properties sold in an area within the look-back period, January through August of the previous year. Requests should differentiate between single-family residential properties, and condominiums or cooperative housing units. Ideally, the data provided should also distinguish between distressed and non-distressed sales. Requests for a change will only be considered for counties for which HUD does not already have home sales transaction data for the calculation of Mortgage limits.

You can look up your 2020 loan limit here. These limits are effective from January 1, 2020, to December 31, 2020.

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Joseph M. Ventrone
Vice President, Federal Policy and Industry Relations | Advocacy Group
NATIONAL ASSOCIATION OF REALTORS® | 500 New Jersey Ave NW | Washington, DC 20001
Email: JVentrone@realtors.org | Office: 202-383-1095 | Mobile: 202-841-6181 Twitter: @JoeVentrone
www.nar.realtor

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