Conforming loan limits are rising in the new year to keep up with escalating home prices, both the Federal Housing Administration and Federal Housing Finance Agency announced Tuesday.
The new conforming loan limit set by the FHFA for 2024 is $766,550 (a hike of $40,350 compared to 2023’s baseline amount of $726,200). FHFA is the regulator of Fannie Mae and Freddie Mac. For FHA, the new conforming loan limit for 2024 is $498,257, marking a $60,000 increase over last year’s baseline. FHA loans have lower minimum credit score and down payment requirements and are popular among first-time home buyers.
The conforming loan limits set by FHA and FHFA represent the baseline values that will be guaranteed by the federal government in 2024. However, more expensive areas can have higher limits, depending on the average prices in their markets. For example, in California, New York, the District of Columbia, Hawaii and other pricey markets, the limit for FHFA conforming loans in 2024 will be set at $1,149,825.
While conforming loan limits are the maximum amount guaranteed by the federal government, borrowers can still apply for jumbo loans.
Federal law requires FHFA and FHA to adjust their conforming loan limit values yearly to reflect changes in U.S. home prices. According to FHFA’s House Price Index, home prices rose 5.6%, on average, between the third quarters of 2022 and 2023.
Check out a list of 2024 FHFA conforming loan limits for all counties in the U.S.