2019 is over and Fannie and Freddie are giving new, larger loans in 2020. Fannie Mae, Freddie Mac, and the Federal Housing Administration are now backing larger mortgages than they were just a few weeks ago. This is because each of the loan agencies’ loan limits are higher than they were in 2019. With home prices increasing almost 5% compared to the previous year, the housing index rose in 2019.
Housing Wire reports: “With higher home prices come higher loan amounts, and the FHA, Fannie Mae, and Freddie Mac all recently adjusted their loan limit amounts to account for higher home prices.
Those higher loan limits took effect on Jan. 1, 2020, meaning the FHA, Fannie Mae, and Freddie Mac are all now backing larger loans.”