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2024 Conforming Loan Limits Announced

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Did you hear? The conforming loan limits for 2024 were announced and with some good news for prospective buyers.

What Does This Mean?

Conforming loans are mortgages that adhere to specific dollar limits set by the FHFA (the Federal Housing Finance Agency) which in turn become the funding criteria for FNMA (Fannie Mae) and FHLMC (Freddie Mac).  These loans are advantageous given their typical and relative lower interest rates.

What are the Conforming Loan Limits for 2024

As announced on November 28, 2023, conforming loan limits are again on the rise for 2024.  Prospective home buyers can look for a ceiling of $766,550 (which represents an increase of $40,350 from 2023).  Certain areas with known higher costs of living will see a limit of $1,149,825 (up from $1,089,300 in 2023).  If you’re wondering if anywhere in Florida has the higher limits – Monroe County is the lone county. The remaining higher limit areas are found in CA, NY, DC and HI.  FHA loans will have a limit of $498,257 (which represents a $60,000 increase from 2023).  First time home buyers often find the FHA loans more advantageous as they have lower down payments and minimum credit scores.
The annual increases are designed to support the rising cost of home prices in the U.S.  Federal law requires the rates be reviewed annually.

What Happens if a Property Value Exceeds a Conforming Loan Limit?

For those buyers looking to buy a property that exceeds the aforementioned limits, they can look to non-conforming conventional mortgages (commonly referred to as jumbo loans) for funding.  Should you be considering this path – talk to a qualified lender who can analyze and assess your situation while educating and guiding you accordingly.  You will find many of the loan requirements the same (credit scores, debt-to-income ratios, cash reserves) but oftentimes with more rigorous criteria.

If you want to buy a home in 2024, please contact me to discuss your home search.  I would welcome the opportunity to learn about what you hope to find in your new home.  The First Coast is a wonderful area to call home.

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