Exciting news is on the horizon for homebuyers and homeowners in Connecticut, as the Federal Housing Finance Agency (FHFA), in tandem with Fannie Mae and Freddie Mac, has announced a significant increase in conforming and high balance loan limits for 2024. This boost in loan limits brings a wealth of opportunities for those in pursuit of their dream homes or seeking to refinance existing properties.
2024 Loan Limit Highlights:
In a promising development, the new loan limit for most of the country in 2024 will be $766,550 for a 1-unit property. This marks a substantial 5.56% increase over the 2023 limit, demonstrating a commitment to facilitating homeownership and supporting the real estate market.
Mortgage Loan Limits
The Federal Housing Finance Agency (FHFA) sets loan limits for mortgages that are eligible for purchase by government-sponsored enterprises (GSEs) such as Fannie Mae and Freddie Mac. These limits determine the maximum amount that can be borrowed for a conforming loan, which is a mortgage that adheres to the guidelines set by Fannie Mae and Freddie Mac.
The FHFA adjusts these loan limits annually to reflect changes in average home prices. The purpose of these limits is to ensure that mortgages purchased by Fannie Mae and Freddie Mac are within reasonable bounds and to provide a degree of stability to the housing market. There are two main types of loan limits:
- Conforming Loan Limits: These are the maximum loan amounts that Fannie Mae and Freddie Mac can purchase. These limits vary by location, as they are based on the median home prices in each area. In high-cost areas, the limits are higher to account for the more expensive real estate.
- High-Cost Area Loan Limits: In certain regions where the median home prices are significantly higher than the national average, the FHFA establishes higher loan limits to accommodate the cost of housing in those areas.
It’s important to note that FHFA loan limits apply to conventional mortgages, and they do not directly impact government-backed loans like FHA (Federal Housing Administration) or VA (Department of Veterans Affairs) loans, which have their own set of limits and guidelines.
In Summary
Loan limits in 2024 are increasing! The new loan limit for most of the country will be $766,550 (1-unit) — a 5.56% increase over the 2023 limit. The Federal Housing Finance Agency (FHFA), as well as Fannie Mae and Freddie Mac, have announced the 2024 Conforming and High Balance Loan. Limits for 1-4 units.
For the most up-to-date information on FHFA loan limits, check the FHFA website or consult with a mortgage professional, like John Burke of Burke Mortgage.
FHFA – 2024 Conforming Loan Limit Values
Fannie Mae Lender Letter – Confirmation of Conforming Loan Limit Values for 2024
Freddie Mac Loan Limit Values for 2024