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Mortgage Knowledge.   Industry Updates.   Market Insights.   Local Happenings. 


NEW: 2020 Conventional Loan Limit Increase! $510,400

Updated: Jun 15, 2021

2020 marks the 4th year in a row that the Federal Housing Finance Agency (FHFA) is raising the maximum conforming loan limit. The conventional loan limit will increase to $510,400, which is $26,050 higher than the 2019 conventional conforming loan limit of $484,350. Data from the FHFA shows that home prices have increased by 5.38% from Q3 of 2018 to Q3 of 2019 therefore, the maximum loan limit will increase by the same percentage.

In the current market, it may seem that these increases are automatic and expected, but it wasn’t too long ago that the loan limit held steady for an entire decade. The housing and economic recovery act of 2008 established a baseline loan limit at $417,000 and mandated that after a period of declines, the baseline cannot be raised until homes prices return to pre-decline levels.  In 2016, the loan limit was raised by $7,100, which was the first time there was an increase in 10 years. Over the past 4 years it has gone up by at total of $93,000.

There are some higher cost areas where 115% of the local median home value exceeds the baseline conforming loan limit. These areas have a higher loan limit, which is established as a multiple of the area median home value. The maximum loan limit, regardless of the location, is set at $765,600 - or 150% of the baseline loan limit. This limit of $765,600 applies to the highest cost areas, as well as, Alaska, Hawaii, Guam and the US Virgin islands.

How does this apply to you and your mortgage situation?

A higher conventional loan limit allows you to utilize a conventional loan on a property that may not have qualified for a conforming conventional loan in 2019. While High Balance and Jumbo Loans are great financing options for higher price properties, conventional loans are typically the better option. They are often faster, easier and have lower interest rates and closing costs.

Ready to buy your dream home?

Call Simplicity today 386.401.9000 to discuss your mortgage options!


Simplicity Mortgage is a local mortgage broker company located on 411 Dunlawton Avenue in Port Orange, Florida. We serve borrowers looking for loans in the central Florida area to include Volusia and Flagler counties, Palm Coast, Ormond Beach, Ormond by the Sea, Deland, Daytona Beach, Daytona Beach Shores, Port Orange, Ponce Inlet, New Smyrna Beach and all surrounding areas. We have a portfolio of 20 lenders, which allow us to find the best home loan product for a borrowers unique purchasing scenario. Our mission is to provide a simple and smooth customer experience coupled with an excellent rate and low fees. We are your accessible, single point of contact throughout the process.  We offer a full suite of loan products: Conventional, VA loan, FHA loan, USDA, Jumbo, Non Qualified Mortgage (non-QM), Self Employed, 1099, first time home buyer, investment, and secondary property purchases.  We have excellent options for your refinance as well, IRRRL, Home Equity Loan, Streamline Refinance, Cash Out, Rate and Term.  Give us a call today to discuss current mortgage rates.  We will utilize our mortgage calculator to assess the mortgage payment with various mortgage rates for your home loan to help you determine the best financial fit for your purchase.


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