Breaking News: FHFA Conforming Loan Limits Increasing for 2024
Homebuyers, have you been eyeing that dream home just out of reach? Well, the Federal Housing Finance Agency (FHFA) has just made it a bit easier to make those dreams a reality by increasing the conforming loan limits for 2024.
For 2024, the national standard conforming loan limit for a single-family home will increase to $766,550, up from $726,200 in 2023. This increase reflects the overall rise in home prices across the country.
What are Conforming Loan Limits?
Conforming loan limits are the maximum mortgage loan amounts that Fannie Mae and Freddie Mac, two government-sponsored enterprises (GSEs), are willing to purchase for Conventional Loans (conforming to their guidelines, thus the term, conforming loan limits). These limits are set annually by the FHFA and are based on changes in the national average home price.
What does this mean for homebuyers?
The increase in conforming loan limits means that more homebuyers will be eligible for conventional loans, which typically have lower interest rates and fees than jumbo loans. In Denver County, Colorado housing prices are higher than the national average, so FHFA has what is known as a a high balance loan limit which is set at $816,500 in many areas in Colorado for 2024. Be sure to confirm your loan limit in the area you are looking to buy and also be aware that such loans limits may be difference for FHA or VA loans. Areas in Eagle County, Garfield County, and Pitkin County, Colorado where cities like Vail, Boulder, Breckenridge reside and where real estate is even at a higher premium have high balance loan limits that can go as high as $1,149,825 for a single family home. For anything higher than the conforming loan limit or high balance loan limit in the area you’re looking to buy you would need to look at Jumbo Loan. Jumbo loans are loans that exceed the conforming loan limits and are typically offered by private lenders. We work with those as well and can find the best Jumbo Loan for your needs
Here is a table of the new conforming loan limits for 2024:
| Area | Loan Limit – 1 Unit |
|---|---|
| National FHFA Minimum Conforming Loan Limit | $766,550 |
| Denver Metro Area High Balance Loan Limit Colorado | $816,500 |
| Alaska, Guam, Hawaii, and the U.S. Virgin Islands | $1,149,825 |
What to Consider Before Applying for a Mortgage
Before you apply for a mortgage, it is important to consider your financial situation and make sure you can afford the monthly payments. You should also shop around for the best interest rates and terms.
Here are some tips for getting the best mortgage possible:
- Get pre-approved for a mortgage. This will give you a good idea of how much you can afford to borrow and will make you a more competitive buyer.
- Shop around for different lenders. Compare interest rates, fees, and terms from multiple lenders before you choose one.
- Make sure your credit is in good shape. Your credit score will affect the interest rate you qualify for.
- Put down as much as you can afford. The more money you put down, the lower your monthly payments will be.
Looking to Buy a Home in 12 Days or 12 months in Colorado?
If you are thinking about buying a home, now is a great time to start talking to a mortgage broker or mortgage lender. With the new conforming loan limits, you may be able to buy more home and get a conventional loan with a lower interest rate than you thought possible. We would be honored to have the opportunity to take care of you. Schedule a Consultation to find out what your best options are.
