The CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) today issued the following statement in response to the Federal Housing Finance Agency’s (FHFA) announcement to increase the 2020 conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac to $510,400 on one-unit properties and a cap of $765,600 in high-cost areas. The previous loan limits were $484,350 and $726,525, respectively.

“C.A.R. commends the FHFA for increasing the 2020 loan limits for loans insured by Fannie Mae and Freddie Mac. The new loan limits recognize California’s and the nation’s rising home prices and will ensure more home buyers have access to safe and affordable mortgages,” said C.A.R. President Jeanne Radsick. “These increases keep the cost of borrowing manageable for many California home buyers and will help improve housing affordability across the state. We hope the FHFA will continue to look for ways to increase homeownership opportunities across all housing markets, including high-cost areas.”

C.A.R. and the NATIONAL ASSOCIATION OF REALTORS® (NAR) both have long advocated for higher conforming loan limits. As a result of C.A.R.’s and NAR’s efforts, cities with high median home prices have benefited from a loan limit above the national conforming loan limit.

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.

Leading the way…® in California real estate for more than 110 years, the CALIFORNIA ASSOCIATION OF REALTORS® ( is one of the largest state trade organizations in the United States, with more than 190,000 members dedicated to the advancement of professionalism in real estate. C.A.R. is headquartered in Los Angeles.


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