In line with the Federal Housing Finance Agency (FHFA) announcement, we’re increasing our maximum baseline conforming loan limits and high-cost area loan limit values.
FHFAs seasonally adjusted house price index data indicate that house prices increased 5.56%, on average, between the third quarter of 2022 and 2023. Therefore, the maximum baseline conforming loan limit values in 2024 will increase by the same percentage.
If you’re looking to buy a home in 2024, it’s important to understand conforming loan limits Conforming loans are mortgages that meet the underwriting guidelines set by Fannie Mae and Freddie Mac These loans typically have lower interest rates and more flexible qualification requirements.
For 2024, Fannie Mae and Freddie Mac have increased the baseline conforming loan limits across most of the country. There are also higher limits for certain high-cost areas. Here’s what you need to know about 2024 conforming loan limits, especially the new high balance conforming loan amounts.
What Are Conforming Loan Limits?
Conforming loan limits are the maximum loan amounts that Fannie Mae and Freddie Mac will purchase. Loans above the limits are called “jumbo loans” and typically come with higher rates and stricter eligibility standards.
The baseline conforming loan limit applies nationwide For 2024, this limit is $766,550 for a single-family home, up from $726,200 in 2023 There are also higher limits for 2-4 unit properties
- 2-unit: $981,500
- 3-unit: $1,186,350
- 4-unit: $1,474,400
These baseline limits increased by about 5.6% from 2023 based on rising home values The limits are adjusted annually
High Balance Conforming Loans
In high-cost areas, Fannie and Freddie allow even higher conforming loan limits. These are called “high balance” conforming loans.
The high balance loan limits for 2024 depend on median home prices in each metro area, county, or state. They range from the baseline limit up to $1,149,825 for a single-family home.
High balance conforming loans let you borrow above the baseline limit while still getting a conforming loan. This gives you access to lower rates and easier eligibility in expensive housing markets.
Why High Balance Loan Limits Matter
Conforming loans offer big advantages over jumbo mortgages:
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Lower rates – Conforming loans typically have the lowest rates available, even high balance loans. Jumbos are 0.25% – 0.5% higher.
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Lower down payments – You can get a conforming loan with as little as 3% down. Most jumbos require at least 20% down.
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Better terms – Conforming loans allow 30-year fixed rates and have lower fees. Jumbos usually have shorter terms and higher costs.
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Easier approval – Conforming loans have flexible credit and income requirements. Jumbos are much tougher to qualify for.
High balance conforming loans let you enjoy these perks in high-cost areas with expensive home prices.
How To Find Your 2024 High Balance Limit
To find the exact high balance conforming loan limit for your county or metro area, use Fannie Mae’s AMI Lookup Tool.
You can search by property address, county, or state. The tool will show you the applicable limit for your specific area for loans with 1-4 units.
As an example, here are the 2024 high balance limits for select metro areas:
| Metro Area | 1-Unit Limit |
|---|---|
| San Francisco, CA | $1,149,825 |
| New York, NY | $1,075,650 |
| Los Angeles, CA | $1,074,400 |
| Washington, DC | $970,800 |
| Denver, CO | $726,200 |
The high balance loan limit increases based on the median home value in each specific area. The highest possible limit in 2024 is $1,149,825.
Requirements For High Balance Conforming Loans
Although high balance conforming loans offer better terms than jumbos, there are some additional requirements:
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Minimum 620 credit score for most programs
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Income must be verified and stable
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Debt-to-income ratio generally below 45%
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Reserves – 2+ months of mortgage payments post-closing
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Appraisal required – no automated valuation models
Your lender will check if you meet the high balance conforming loan requirements during pre-approval. Make sure to ask your loan officer to go over the guidelines in detail.
Tips For Using 2024 High Balance Limits
Here are some tips to make the most of the new 2024 high balance conforming loan limits if you want to buy a higher-priced home:
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Shop for pre-approval – Compare multiple lender quotes to find the best high balance mortgage rates and fees.
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Check your limit – Research the exact high balance limit amount for the areas/homes you’re considering.
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Boost your down payment – Putting down more money lowers the amount you need to borrow.
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Improve your credit – Aim for at least a 720 FICO score to get the top interest rates.
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Reduce debt – Pay down revolving balances to keep your DTI lower.
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Save for closing – Have reserves for your down payment, closing costs, and post-closing reserves.
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Act quickly – Loan limits can change each year depending on housing data.
Alternatives To High Balance Conforming
If your loan amount still exceeds the high balance conforming limit for your metro area, here are some options to consider:
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Adjust your budget – Buy a lower-priced home that keeps you within your area’s limit.
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Increase your down payment – Put down more money to lower the amount you need to borrow.
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Get a jumbo loan – Jumbos allow higher balances but come with higher rates/fees.
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Use a piggyback loan – Combining a conforming first mortgage with a HELOC or second lien avoids jumbo loan rates.
The Bottom Line
Conforming loan limits, including the new high balance amounts, are increasing for 2024. This lets buyers in expensive markets borrow more while still getting lower conforming mortgage rates and terms. Make sure to look up the exact high balance limit for your local area as you shop for a home.
Loan Limit Values for Mortgages on Properties in High-Cost Areas*
For properties located in designated high-cost areas*, we will purchase super conforming mortgages with original loan amounts up to the following limits:
| Number of Units | Maximum baseline conforming loan limit values for properties located in designated high-cost areas NOT in Alaska, Hawaii, Guam and U.S. Virgin Islands | Maximum baseline conforming loan limit values for properties located in designated high-cost areas in Alaska, Hawaii, Guam and U.S. Virgin Islands** | ||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| 1 | $1,149,825 | $1,089,300 | Not Applicable | Not Applicable |
| 2 | $1,472,250 | $1,394,775 | Not Applicable | Not Applicable |
| 3 | $1,779,525 | $1,685,850 | Not Applicable | Not Applicable |
| 4 | $2,211,600 | $2,095,200 | Not Applicable | Not Applicable |
*Actual loan limit values for certain high-cost areas, as determined by the FHFA, may be lower than the maximum high-cost area loan limits identified.
**Note: Consistent with the last several years, there are no counties or county equivalent areas in Alaska, Hawaii, Guam or the U.S. Virgin Islands with super conforming/high-cost loan limits higher than the already higher baseline conforming loan limit values in those areas.
When originating super conforming mortgages, you must check the loan limit values for the specific county where the property is located. The 2024 loan limit values for high-cost areas are available on the FHFA website.
Loan Limit Values for Mortgages on Properties Not Located in High-Cost Areas
The following chart shows the 2024 maximum baseline conforming limit values for mortgages secured by properties that are not located in designated high-cost areas.
| Number of Units | Maximum baseline conforming loan limit values for properties NOT in Alaska, Hawaii, Guam and U.S. Virgin Islands | Maximum baseline conforming loan limit values for properties in Alaska, Hawaii, Guam and U.S. Virgin Islands | ||
|---|---|---|---|---|
| 2024 | 2023 | 2024 | 2023 | |
| 1 | $766,550 | $726,200 | $1,149,825 | $1,089,300 |
| 2 | $981,500 | $929,850 | $1,472,250 | $1,394,775 |
| 3 | $1,186,350 | $1,123,900 | $1,779,525 | $1,685,850 |
| 4 | $1,474,400 | $1,396,800 | $2,211,600 | $2,095,200 |
2024 Conventional Loan Limits Explained, A Good Omen for the Economy
FAQ
What is the conforming high balance loan limit for 2024?
What is the HPML threshold for 2024?
What is the King county high balance loan limit for 2024?
What is the USDA loan limit for 2024?
How much can you borrow on a conforming loan in 2024?
In 2024, you can borrow up to $766,550 on a conforming loan in most areas, a $40,350 increase from last year’s limit. In high-cost areas, the ceiling loan limit for one-unit properties is $1,149,825. This is also the baseline loan limit in Alaska, Hawaii, Guam, and the US Virgin Islands.
Will the maximum baseline conforming loan limit values increase in 2024?
Therefore, the maximum baseline conforming loan limit values in 2024 will increase by the same percentage. The following chart shows the 2024 maximum baseline conforming limit values for mortgages secured by properties that are not located in designated high-cost areas.
What is the FHA floor limit for 2024?
FHA’s 2024 minimum national loan limit floor of $498,257 for a one-unit property is set at 65 percent of the national conforming loan limit. This floor applies to those areas where 115 percent of the median home price is less than the floor limit. Any area where the loan limit exceeds this floor is considered a high-cost area.
Where can I find the 2024 loan limit values for high-cost areas?
The 2024 loan limit values for high-cost areas are available on the FHFA website. Loan Product Advisor ® (LPA SM) will be updated on December 3, 2023. However, mortgages with original loan amounts that exceed the 2023 loan limit values but not the higher 2024 limits are not eligible for sale to Freddie Mac until on or after January 1, 2024.