FHFA announces increased conforming loan limits for 2024
The US housing market has been a record string of home price increases over the last few years. For example, the median existing home price a year ago was $379,100—now it is $391,800, down from its 2023 high of $410,200 in June. To contend with this increase, the Federal Housing Finance Agency (FHFA) is raising its conforming loan limits.
The FHFA announced today the updated baseline conforming loan limit for 2024 will be $766,550, an increase of $40,350 from 2023. The new limit for one-unit properties in most high-cost areas will be $1,149,825.
Ready to take advantage of the higher loan limits? Start your homebuying journey today by getting pre-approved.
What does this mean?
Conforming loan limits are updated each year to reflect the changes in average U.S. home prices. A conforming loan meets the requirements and dollar limits set by the FHFA and the lending guidelines set by Freddie Mac and Fannie Mae. Non-conforming loans, often called jumbo loans, usually have more stringent lending guidelines than conforming loans. So, the updated conforming loan limit makes it easier for you to buy more home in 2024.
Now the baseline for single-unit home mortgages acquired by Fannie Mae and Freddie Mac will increase from $726,200 to $766,550 in most of the continental US. This means you will receive conforming loan rates, as opposed to higher jumbo rates, for any loan at or below $766,550.
How can you take advantage?
This higher loan limit means that you can now potentially qualify for a bigger loan with less restrictive guidelines than you could have before. The house you would have previously needed a jumbo loan to purchase can now be bought with a conforming loan, which has many benefits over a jumbo loan, including:
- Lower rates, in general
- More loan options
- Lower down payments
- Less required in mortgage reserves
With the steady increase in home prices over the past few years, this new loan limit could help you snag the home that you thought was just out of reach.
Contact a Rate loan officer to see how much money you could borrow under these new limits today.
Applicant subject to credit and underwriting approval. Not all applicants will be approved for financing. Receipt of application does not represent an approval for financing or interest rate guarantee. Restrictions may apply, contact Rate for current rates and for more information.
Rate is not affiliated with the Federal Housing Finance Authority.