If you’ve been paying any attention to the real estate market this past year, you know that inventory was low and home prices steadily increased due to the demand. As of November 2018, the median existing-home price for all housing types was $257,700 — that’s up 4.2% from November 2017 and marks the 81st straight month of year-over-year gains.

In an effort to adjust to these pricing increases, the newly-released 2019 FHA and VA home loan limits are also a bit higher. The new rates — effective January 1, 2019 to December 31, 2019 — reflect the low and high ends of how much buyers can borrow, depending on where they live.

2019 VA Loan Limits

The Veteran’s Administration (VA) doesn’t set a cap on how much a qualified veteran can borrow to finance a home, but there are limits on the amount of liability it’s willing to assume. The loan limits below, which vary by county, are how much a qualified veteran with full entitlement may be able to borrow without making a down payment.

The new higher 2019 county loan limits will be eligible on VA loans that close on January 1, 2019 or after. Loan limits do not apply to IRRRL refinances. The VA will guarantee 25% of the loan amount on an IRRRL, regardless of whether the loan exceeds the limit for the particular county.

2019 FHA Loan Limits

The FHA has also announced they will be incorporating the new loan limits for loans with case number assignments on or after January 1, 2019. The new higher loan limits can be used with Embrace Home Loans as of December 21, 2018 for conventional loans.

Only 188 counties in the U.S. saw FHA loan limit increases in 2016. That number jumped to 2,948 in 2017, 3,011 in 2018, and now 3,053 for 2019.

Wondering if any of these mortgage options apply to you? Not sure which one to choose? Contact Embrace now to learn more about your options for homeownership in 2019.