Just ahead of the official announcement typically made in late November, we have the scoop on increased loan limits for conventional loans through Fannie Mae and Freddie Mac. Each year, the Federal Housing Finance Agency sets new loan limits based on the third-quarter House Price Index report.
While updates to FHA and VA loan limits are slated for the new year, if you’re considering a conventional loan, you can take advantage of this expanded buying power right now.
In this blog post, we’ll reveal the new limits and explore what this means for prospective homebuyers and those seeking to refinance.
Getting to Know Conventional Loan Limits
If you’re in the market for a conventional loan, you need to understand that there is a limit on what lenders will lend you. Conventional loans aren’t backed by the government but come from private lenders with their own set of rules and perks. The cap they put on how much you can borrow gets updated every year.
Conforming loan limit values diverge based on location and property type. In 2023, the limit for a single-family home is $726,200, with exceptions in high-cost areas like Alaska and Hawaii, where it goes up to $1,089,300. Stay informed about any increases in lending limits, as it affects your borrowing capacity.
What’s Changing in 2024?
In 2024, expect significant increases in conventional loan limits. The Federal Housing Finance Agency will adjust these limits based on the House Price Index as per the Housing and Economic Recovery Act of 2008, the expected loan limits are as follows:
| Number of Units | Lower 48 States | Alaska & Hawaii |
|---|---|---|
| 1 | $766,550 | $1,149,825 |
| 2 | $981,500 | $1,472,250 |
| 3 | $1,186,350 | $1,779,525 |
| 4 | $1,474,400 | $2,211,600 |
You Can Take Advantage Of These Limits Now
There’s no need to wait until January 1st to benefit from the increased loan limits. Make the most of the current situation and seize the opportunity for the following reasons:
- Boost Your Buying Power: Keeping in mind the 2024 limits, expand your options and potentially afford a bigger or more valuable property.
- Stay Ahead in the Market: Gain an edge over your competitors in the real estate market by leveraging these higher limits early.
- Experience Tangible Advantages: Think about the possibilities like owning a comfortable three-unit property for your family, generating rental income, or securing your financial future with a four-unit property. These increased loan limits bring you these opportunities.
Getting Ready to Buy Your First House
So, you’re thinking about buying a house? That’s awesome!
But remember, it’s not just about picking out your dream pad, you have to get your finances in check first. Make sure you know what kind of income you need and how much money to save for the down payment.
You’ll also want to make sure your credit score is up there because that will impact your mortgage rates big time. And don’t forget about those sneaky closing costs!
Now, I bet you’re wondering how much house can I afford? Well, the first step is to talk with an expert – like us who can help guide you in the right direction. The home buying process may seem complicated but we’ll make it easy for you!
Unlocking Your Home Buying Potential
These new, higher loan limits have opened the door to more affordable homeownership without the added complexities of securing a jumbo loan. With conventional loan limits growing to the new figures, your purchasing power has seen a substantial boost. It’s a game-changer for those in search of their dream home.
If you’re ready to explore your loan options, you can apply online today.
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