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Fannie Mae and Freddie Mac Raise 2019 Conforming Loan Limits

LOS ANGELES (Nov. 27) – The CALIFORNIA ASSOCIATION OF REALTORS today issued the following statement in response to the Federal Housing Finance Agency’s (FHFA) announcement to increase the 2019 conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac to $484,350 on one-unit properties and a cap of $726,525 in high-cost areas. The previous loan limits were $453,100 and $679,650, respectively.

“C.A.R. commends the FHFA for recognizing California’s robust home price increases over the last few years and raising maximum conforming loan limits, which will give tens of thousands of California homebuyers a chance at homeownership” said C.A.R. President Jared Martin. “Increasing the existing Fannie Mae and Freddie Mac conforming loan limits will greatly benefit higher-priced areas of the state and provide stability and certainty to the housing market.”

The conforming loan limit determines the maximum size of a mortgage that government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac can buy or “guarantee.” Non-conforming or “jumbo loans” typically have tighter underwriting standards and sometimes carry higher mortgage interest rates than conforming loans, increasing monthly payments and hampering the ability of families in California to purchase homes by making them less affordable.

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