Every year around this time, the Federal Housing Finance Agency changes the conforming loan limit for the next year. It was expected for the limit to increase, and that is exactly what has happened.
For a one-unit property, the loan limit in 2020 will be $510,400.00. The limits for two, three, and four-unit properties are even more. The loan is backed by Fannie Mae or Freddie Mac. From 2019, the limit has increased by $26,050.00!
This increase will likely help more homeowners qualify for a mortgage as they are already more available than others and possibly easier to get approved. This will also be beneficial for those planning to refinance their mortgage this year.
In order to get approved for a conforming loan, you only have to put three percent down. Keep in mind that there are other qualifications to get approved, as well.
In 2006, the conforming loan limit was $417,000.00. That means it has risen almost $100,000.00 in 14 years. The likelihood of the limit to continue to rise as the years go on is low. (However, if appreciation increases, then it may be possible.)
If you live in an extremely expensive area in the United States (Los Angeles, NYC, DC, etc.) will actually have a higher loan limit due to the Housing and Economic Recovery Act.