Conforming and FHA Loan Limits Boosted for 2024

New 2024 loan limits for conforming mortgages have increased to $766,550 and $1,149,825 in high-cost areas like Hawaii. The Federal Housing Finance Agency (FHFA) recently announced these conforming loan limit amounts for residential mortgages to be acquired by Fannie Mae and Freddie Mac.

The 2024 limits increased significantly due to the continuing rise in home prices. The new $766,550 baseline loan limit for one-unit properties is a hike of $40,350 from $726,200 for 2023.

High-cost areas like Hawaii, Alaska, and locations in Virginia, have a new ceiling loan limit for one-unit properties of $1,149,825 versus $1,089,300 for 2023.

Number of Units	Baseline Limits	High-Cost Area Limits
One	$766,550	$1,149,825
Two	$981,500	$1,472,250
Three	$1,186,350	$1,779,525
Four	$1,474,400	$2,211,600

For Federal Housing Authority (FHA) loans, the new 2024 conforming loan limit is $498,257, a $60,000 increase over the 2023 baseline. FHA loans have lower down payment and credit score requirements than conventional loans and are popular for first-time buyers.

FHFA and FHA are required by federal law to adjust conforming loan limit values yearly to reflect changes in U.S. home prices. The conforming loan limit will rise by 5.56% in 2024 due to the FHFA House Price Index that determined the average U.S. home value increased by that amount between the third quarters of 2022 and 2023.

2024 conforming loan limits are available by clicking here.

2024 FHA conforming loan limits are available by clicking here.

Benefits of Higher Loan Limits
Home Buyers

Lower Monthly Payment and Overall Loan Costs

Purchasing a home with a conforming loan versus a higher-cost jumbo loan can lower your borrowing costs. Conforming loans generally have better interest rates, lower costs, and flexible down payment, credit, and qualification guidelines.

Increased Purchasing Power

Apply for a larger loan to buy a better home with a remodeled kitchen, extra bedroom, more space, or in a preferred location.

Homeowners

Tap into more equity with a cash-out refinance

Pay down debt, cover college tuition, or make home improvements.

Refinance a Jumbo Loan

If you have a jumbo loan with a balance near a new loan limit in your area, you may benefit by refinancing to a conforming loan.

Ready to Discuss Your Mortgage Options?
If you’re considering a new home purchase or refinance, reach out to our seasoned mortgage advisors to discuss your loan options. Call 808-566-6611 or request a no-obligation consultation. Click here.