On November 28, 2023, the Federal Housing Finance Agency (FHFA) announced an increase in the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2023.
The maximum loan limit for one-unit properties will be $766,550*, an increase of $40,350 from $726,200 in 2023. Release.
National Baseline
The decision was based on the recovery of housing prices under the Housing and Economic Recovery Act of 2008 (HERA). They require that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price.
FHFA third quarter 2022 House Price Index (HPI) reported that house prices increased 5.56%, on average, between the third quarters of 2022 and 2023. The baseline maximum conforming loan limit in 2024 will increase by the same percentage.
High-Cost Areas
For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit, the maximum loan limit will be higher than the baseline loan limit.
List of 2024 Conforming Loan Limits For All Counties
Curious about limits in your county or other areas? Follow the link below to check. We update it with every change, so bookmark it for future reference if you'd like.
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What Does This Mean for Homebuyers and Homeowners?
- Buyers may be able to borrow more money through a conventional, typically lower-rate loan, potentially with lower down payment requirements.
- Owners may be able to refinance their "jumbo" loan to a lower rate conforming loan and possibly drop mortgage insurance, too.
- Combining (or avoiding) smaller 1st and 2nd mortgages may now be an option.
- The increase reflects the growth in values over the past year and reaffirms your decision to invest in a home.
The Lowdown About The New Loan Limits for 2024
- The standard loan limit, also known as the conforming loan limit, rose by just over 5.5% to a maximum of $766,550 in most areas.
- The percentage increase is equal to the national appreciation average over the last year.
- After a decade of no increases, the limit has now been raised 8 times for a total of more than $346K.
If you have questions about what this change could mean for you, please reach out. And if you have friends who may benefit from the news, please pass it along. The EHL Team would be honored to help them too.
*2024 Conforming Loan Limits Effective January 2024
