FHA and FHFA Announce Higher Conforming Loan Limits for 2024
In response to rising home prices, the Federal Housing Administration (FHA) and Federal Housing Finance Agency (FHFA) have announced increased conforming loan limits for 2024. These changes will affect borrowers in the new year, ensuring that federally-backed loans continue to be accessible and relevant.
New Conforming Loan Limits
The FHFA’s new conforming loan limit for 2024 is $766,550, a $40,350 increase from 2023’s baseline amount of $726,200. The FHA’s new conforming loan limit for 2024 is $498,257, a $60,000 increase over last year’s baseline. FHA loans, which have lower minimum credit score and down payment requirements, are popular among first-time homebuyers.
Regional Variations in Loan Limits
Conforming loan limits set by the FHA and FHFA represent the baseline values guaranteed by the federal government in 2024. However, more expensive areas may have higher limits depending on the average prices in their markets. For example, in California, New York, the District of Columbia, Hawaii, and other high-priced markets, the limit for FHFA conforming loans in 2024 will be set at $1,149,825.
Jumbo Loans
While conforming loan limits represent the maximum amount guaranteed by the federal government, borrowers can still apply for jumbo loans that exceed these limits. Jumbo loans can offer borrowers more significant amounts but may come with stricter requirements and higher interest rates.
Annual Adjustments
Federal law requires the 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. These adjustments ensure that federally-backed loans continue to provide appropriate support to homebuyers.
Find Conforming Loan Limits for Your Area
Check out the 2024 FHFA conforming loan limits for all counties in the U.S. and search for 2024 FHA conforming loan limits by area to stay informed and plan for your homebuying journey.
Orginal article: Link To Article – provided by Kansas City Realtors
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