2024 New Loan Limits – Video Examples On How They Could Impact You!

FHFA Announces Conforming Loan Limit Values for 2024

The baseline Conforming Loan Limit Will Increase to $766,550

FOR IMMEDIATE RELEASE

​​​​​​Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced the conforming loan limit values (CLLs) for mortgages to be acquired by Fannie Mae and Freddie Mac (the Enterprises) in 2024. In most of the United States, the 2024 CLL value for one-unit properties will be $766,550, an increase of $40,350 from 2023.​

National Baseline

The Housing and Economic Recovery Act (HERA) requires that the baseline CLL for the Enterprises be adjusted each year to reflect the average U.S. home price change. Earlier today, FHFA published its third quarter 2024 FHFA House Price Index® (FHFA HPI®) report, which includes statistics for the average U.S. home value increase over the last four quarters. According to the nominal, seasonally adjusted, expanded-data FHFA HPI, house prices increased 12.21 percent, on average, between the third quarters of 2022 and 2023. Therefore, the baseline CLL in 2024 will increase by the same percentage.​

High-Cost Areas

For areas where 115 percent of the local median home value exceeds the baseline conforming loan limit, the applicable loan limit will be higher than the baseline loan limit. HERA establishes the high-cost area limit in those areas as a multiple of the area median home value while setting the ceiling at 150 percent of the baseline limit. Median home values generally increased in high-cost areas in 2023, which increased their CLL. The new ceiling loan limit for one-unit properties will be $1,149,825.

Special statutory provisions establish different loan limits for Alaska, Hawaii, Guam, and the U.S. Virgin Islands. In these areas, the baseline loan limit will be $1,149,825 for one-unit properties.

Why And How Much They Increase Each Year

The Housing and Economic Recovery Act of 2008 (HERA) requires that the baseline conforming loan limit (CLL) value be adjusted each year to reflect the national average home price changes. HERA specifies that the Federal Housing Finance Agency (FHFA) “establish and maintain” an index for tracking average home prices. In May 2015, FHFA published a Notice and Request for Input announcing its plans to use the nominal, seasonally adjusted, expanded-data FHFA House Price Index (HPI) for this purpose.1 Having received generally favorable feedback to the announcement, in October 2015, FHFA published a Final Notice declaring that it would follow the original plan.

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