5 Ways to Leverage New Federal Lending Limits to Build Your Real Estate Empire in 2020

5 Ways to Leverage New Federal Lending Limits to Build Your Real Estate Empire in 2020

2 min read
Whitney Hutten

Whitney is a real estate investor and personal finance trainer whose vision is to launch 10,000 families on the path toward financial independence.

After purchasing her first rental in 2002 and hitting a home run, then nearly losing it all on her second deal, Whitney took control and figured out how to invest in real estate the right way. She realized that success must leave clues. So, she studied and replicated the very personal finance and wealth creation strategies the wealthy use to create financial freedom.

Today, Whitney is a partner in $500MM+ of real estate assets, including 5,000+ residential units (MF, MHP, SFR, and assisted living ) and 1,430+ self-storage. Additionally, she has flipped over $3MM in residential real estate and has a solid portfolio of commercial notes. (Don’t tell anyone though… BRRRR investing is still one of her favorite strategies—26 units and counting!)

In 2018, Whitney founded ASH Wealth and the Investor Accelerator Mastermind, where she helps you develop a clear, workable plan that gives you the results you dream of, solves your business startup or scaling issues, and drives massive progress toward your real estate and financial goals.

In her spare time, Whitney enjoys trail running, mountain biking, camping, and spending time with her family.

Whitney’s been featured on the BiggerPockets Blog, BiggerPockets Real Estate Podcast episode #340, BiggerPockets Rookie Show episode #29, BestEver Podcast, The InvestHer Show, The Investing for Good Show, Life Bridge Capital podcast, The Road to Family Freedom podcast, Frenzied to Financial Freedom podcast, Purchase to Profits podcast, and more!

ASH Wealth

Read More

Join for free and get unlimited access, free digital downloads, and tools to analyze real estate.

This year, many investors were giving thanks earlier than the designated holiday, when the Federal Housing Finance Agency raised the maximum conforming loan limit for the fourth straight year on November 26th.

So, what does this mean for you as an investor?

Well, if you are looking to get into your first rental property through a house hack or live-in flip using Fannie Mae or Freddie Mac products, you are in luck. You will soon be able to take out a federally backed mortgage up to $510,400 nationwide (and possibly higher if your purchase is in one of these 43 counties!).

Why the New Federal Lending Limit?

This is the fourth consecutive year the loan limits have risen. Why is that?

Related: Investment Property Loans: The Ultimate Guide to Funding Your Deals

By federal law, the loan limits must be adjusted as housing prices rise. From Q3 2018 to Q3 2019, home prices rose 5.38 percent; therefore, the loan limits had to rise by the same percentage.

Not everyone likes this.

housing crisis media coverage

Some market observers argue the larger loan limits are actually pushing up home prices for consumers. With home price growth slowing this year in many markets, this is actually creating more of an affordability crisis in many housing markets.

Additionally, this lending could balloon the government’s mortgage obligation. This, too, is causing a little unease.

But savvy investors know how to spot and leverage opportunity…

How Can You Take Advantage of This New Loan Limit?

Recently, I wrote about how to build a real estate empire using the FHA loan to purchase an investment property. This recent lending development—coupled with historically low interest rates—will allow you to access an additional $27,460 in lending capital for as little as $961 (3.5 percent) in a down payment at rock bottom rates (yes, please!).

Also worthwhile to note: this may open up access to lending opportunities for properties that just a few days ago couldn’t qualify for FHA lending. It’s time to rerun your lead searches.

Related: FHA Guidelines: How to Qualify for a 3.5% Down Loan

So, here’s how best to put this capital to use:

  • Purchase a live-in flip
  • Purchase a primary home that you will rent out after 2 years
  • Purchase a primary home that you will house hack and then move out after 2 years

neighborhood street 1

Now, you are building an empire, so let’s supercharge your strategies a little here and really take advantage of these lending dollars to:

  • Purchase a 2- to 4-unit multifamily to house hack, then move out after 2 years and repeat
  • Purchase a 2- to 4-unit multifamily to rehab as you live there, house hack, then move out after 2 years and repeat

The house hack may not be for everyone, but let’s not miss out on the fact that house hacking is not only a great way to reduce or eliminate your housing bill (for most Americans their largest ongoing expense), but it’s also an amazing savings strategy to help you scale your portfolio quickly.


Fannie Mae and Freddie Mac lending remain amazing tools to help any investor launch and scale their real estate empires for low money down. And everyone needs a roof over their head, so this strategy is technically accessible to all who can qualify for the loan.

blog banner House Hacking 2

As a savvy investor, how will you leverage this early holiday gift in 2020?

Comment below!