This was quite an interesting year for the real estate market. Home prices continued to rise and bidding wars remained prevalent, all despite rising interest rates. Many buyers found it difficult to compete for homes given high prices and mortgage limits. Fortunately, there is good news for buyers hoping to inch into higher price points without using jumbo loan products. 2019 conforming loan limits are increasing nationwide. Here’s what buyers can expect and how this will help homeownership prospects.
Why Loan Limits Matter
Conforming loans have limits that apply per county based on average home prices from the previous year’s sales. There is also an overall minimum and maximum that applies. For last year, the lower limit was $453,100. That is increasing to $484,350 for loans issued in 2019. That’s over $30,000 in increased purchasing power for buyers. As for high end markets, the upper limit has increased from $679,650 to $726,525! The $46,875 increase will enable more buyers to avoid jumbo loans.
New 2019 Conforming Loan Limits
As we mentioned above, the limit can vary by county but will always remain between $484,350 and $726,525. Here’s a look at counties in MA and NH and their respective limits:
Massachusetts Conforming Loan Limits
| County | Single Family | 2 Family | 3 Family | 4 Family |
| BARNSTABLE | $484,350 | $620,200 | $749,650 | $931,600 |
| BERKSHIRE | $484,350 | $620,200 | $749,650 | $931,600 |
| BRISTOL | $484,350 | $620,200 | $749,650 | $931,600 |
| DUKES | $726,525 | $930,300 | $1,124,475 | $1,397,400 |
| ESSEX | $688,850 | $881,850 | $1,065,950 | $1,324,750 |
| FRANKLIN | $484,350 | $620,200 | $749,650 | $931,600 |
| HAMPDEN | $484,350 | $620,200 | $749,650 | $931,600 |
| HAMPSHIRE | $484,350 | $620,200 | $749,650 | $931,600 |
| MIDDLESEX | $688,850 | $881,850 | $1,065,950 | $1,324,750 |
| NANTUCKET | $726,525 | $930,300 | $1,124,475 | $1,397,400 |
| NORFOLK | $688,850 | $881,850 | $1,065,950 | $1,324,750 |
| PLYMOUTH | $688,850 | $881,850 | $1,065,950 | $1,324,750 |
| SUFFOLK | $688,850 | $881,850 | $1,065,950 | $1,324,750 |
| WORCESTER | $484,350 | $620,200 | $749,650 | $931,600 |
New Hampshire Conforming Loan Limits
| County | Single Family | 2 Family | 3 Family | 4 Family |
| BELKNAP | $484,350 | $620,200 | $749,650 | $931,600 |
| CARROLL | $484,350 | $620,200 | $749,650 | $931,600 |
| CHESHIRE | $484,350 | $620,200 | $749,650 | $931,600 |
| COOS | $484,350 | $620,200 | $749,650 | $931,600 |
| GRAFTON | $484,350 | $620,200 | $749,650 | $931,600 |
| HILLSBOROUGH | $484,350 | $620,200 | $749,650 | $931,600 |
| MERRIMACK | $484,350 | $620,200 | $749,650 | $931,600 |
| ROCKINGHAM | $688,850 | $881,850 | $1,065,950 | $1,324,750 |
| STRAFFORD | $688,850 | $881,850 | $1,065,950 | $1,324,750 |
| SULLIVAN | $484,350 | $620,200 | $749,650 | $931,600 |
Summary
As a backlog of buyers are still searching for home to purchase, the increase in conforming loan limits in Massachusetts and New Hampshire is welcome news. It will allow some buyers to avoid a jumbo loan and save on homeownership expenses. For those that do not qualify for jumbo products, it can improve the chances of finding a home by increasing the price point for homes that qualify. If you are looking to purchase a home, contact me for a re-evaluation of your qualification criteria. This increase in loan limits could directly impact you and your ability to get into the home of your dreams.