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Loan Limits Increase for 2024
December 1, 2023
New conforming loan limits for 2024 have been announced by the Federal Housing Finance Agency (FHFA), with the cap for single-unit properties across most of the country set at $766,550.
The conforming loan limit is the maximum dollar amount of a mortgage that Fannie Mae or Freddie Mac will guarantee. In accordance with the Housing and Economic Recovery Act, the limit is adjusted every year to reflect changes in the average price of a home in the U.S.
This adjustment is made on a per-county basis, with the limit in most counties receiving a bump equal to the average annual percentage increase of national home prices. In third-quarter 2023, this increase (seasonally adjusted) was 5.56%, according to the most recent FHFA House Price Index report.
The chart below outlines changes for major counties in Southern California including Riverside County. Additional information available with buttons below including Area Median Income Lookup Tool which can show you the exact AMI for any address and a full list of AMI updates for 2023 by County.
What does this mean for home buyers and homeowners?
The loan limit increases don't just benefit home buyers; they help homeowners, too! You can now access more equity, which means more cash in hand when you choose a cash-out refinance.
2024 FHFA Conforming Conventional Loan Limits
Click Here for All Conforming Loan Limit Values
How does this affect FHA Loans?
The FHA is mandated to set mortgage loan limits every year by the National Housing Act (NHA), as amended by the Housing and Economic Recovery Act of 2008 (HERA). The NHA requires the FHA to set its limits based on the national conforming loan limit set by the Federal Housing Finance Agency (FHFA) for mortgages guaranteed by Fannie Mae and Freddie Mac. In 2024, the national conforming loan limit for a one-unit property is $766,550; the FHA loan floor is set at 65% of the conforming loan limit.
The floor applies to so-called “low-cost” areas — counties where 115% of the median home price is less than the floor limit. Any area where that threshold is surpassed is deemed a “high-cost” area, and varying loan limits above the floor for those areas are set by the FHA based on local median home prices.
The NHA also requires the FHA to set a maximum loan ceiling of 150% of the national conforming loan limit for those high-cost areas. In 2024, that ceiling for a one-unit property is set at $1,149,825. Additionally, there are some areas where loan limits are determined differently due to factors such as construction costs. Those places include Alaska, Hawaii, the U.S. Virgin Islands and Guam; in those areas, the 2024 limit for a one-unit property is $1,724,725.
Maximum loan limits are set to rise in 3,138 counties nationwide, while another 96 counties will see no change. The new loan limits are effective for FHA case numbers assigned on or after Jan. 1.
Source: Arnie Aurellano, Scotsman Guide
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We do business in accordance with the Federal Fair Housing Law and the Equal Credit Opportunity Act. This letter is for informational purposes only and is not an advertisement to commit to lend or extend customer credit as defined by section 12 CFR 1026.2 Regulation Z. Restrictions and conditions may apply. Terms, rates, data, programs, information, and conditions are subject to change without notice, and may not be available in all areas. Fortem Loans, LLC is licensed by the Department of Financial Protection and Innovation under the California Financial Lenders Law License, NMLS# 2315626 , DFPI# 60DBO-165158. Subject to Borrower Approval.
