The FHA Raises Loan Limits 2024

The Federal Housing Administration (FHA) has just increased the amount of money that can be borrowed through its mortgage programs by more than $26K in most areas. In high-cost locations, the increase is even greater. New limits will take effect in 2024.

This news could make a big difference for homebuyers!

The increases will allow more borrowers to take advantage of FHA’s benefits:

• Low down payment options
• Lower total cash-to-close requirements with gift or seller contributions
• More lenient and streamlined refinancing
• Ability to combine purchase and rehab financing
• In some high-cost areas, higher loan limits than conventional mortgages

Here are the specifics:

• In most areas, the FHA loan limit will be $498,257, a 5.56% increase over 2023’s limit of $472,030.
• In most high-cost areas, the limit moves to $1,149,825, a 5.56% increase over 2022’s $1,089,300.
• In some lower-cost areas or those with higher costs of construction, limits will vary.

If you have questions about what this change could mean for you, please reach out at 888-616-9885 or click here to contact us.

And if you have friends who may benefit from the news, please pass it along. We would be honored to help them too.

 

On November 28, 2023, the Federal Housing Finance Agency (FHFA) announced an increase in the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2023.

The maximum loan limit for one-unit properties will be $766,550*, an increase of $40,350 from $726,200 in 2023.​ Release.

National Baseline

The decision was based on the recovery of housing prices under the Housing and Economic Recovery Act of 2008 (HERA). They require that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price.  

FHFA third quarter 2022 House Price Index (HPI) reported that house prices increased 5.56%, on average, between the third quarters of 2022 and 2023. The baseline maximum conforming loan limit in 2024 will increase by the same percentage.

High-Cost Areas

For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit, the maximum loan limit will be higher than the baseline loan limit. 

List of 2024 Conforming Loan Limits For All Counties

Curious about limits in your county or other areas? Follow the link below to check. We update it with every change, so bookmark it for future reference if you'd like. 

What Does This Mean for Homebuyers and Homeowners?

• Buyers may be able to borrow more money through a conventional, typically lower-rate loan, potentially with lower down payment requirements.
• Owners may be able to refinance their "jumbo" loan to a lower rate conforming loan and possibly drop mortgage insurance, too.
• Combining (or avoiding) smaller 1st and 2nd mortgages may now be an option.
• The increase reflects the growth in values over the past year and reaffirms your decision to invest in a home.

The Lowdown About The New Loan Limits for 2024

• The standard loan limit, also known as the conforming loan limit, rose by just over 5.5% to a maximum of $766,550 in most areas.
• The percentage increase is equal to the national appreciation average over the last year.
• After a decade of no increases, the limit has now been raised 8 times for a total of more than $346K.

If you have questions about what this change could mean for you, please reach out.  And if you have friends who may benefit from the news, please pass it along. The Greenway Team would be honored to help them too.

*2024 Conforming Loan Limits Effective January 2024

 

 

Inflation is currently down. Does this mean it's time to make a move?

The October Consumer Price Index (CPI) showed U.S. prices were unchanged from September to October. Mortgage interest rates immediately fell with the news.

What does lower inflation mean moving forward?

• Many market analysts are projecting the Federal Reserve Board may be done raising rates. However, that doesn't mean rate cuts will come anytime soon.

• The annual inflation rate was 3.2% in October, still above the Fed target of 2%.

• It's likely markets will remain volatile as investors try to anticipate the Fed's next moves.

Seize The Moment of Lower Rates

• Many of our clients are already taking the opportunity to 𝙡𝙤𝙘𝙠 𝙞𝙣 𝙖 𝙧𝙖𝙩𝙚 on a purchase or refi before any alternative news drives rates back up again.

• If you've been waiting to purchase, refinance, or access cash from your home's equity, it's a good time to take a closer look and we can help!

Please reach out with your questions. We are happy to help you navigate the current market!

 

The Federal Housing Finance Agency (FHFA) which oversees Fannie & Freddie and sets loan limits for conventional mortgages is expected to increase the amount of money that can be borrowed through a standard home loan to $750K. In some areas, the limit is expected to be even higher.

The new limits will take effect in 2024.

Here are the specifics about the change

1. The standard loan limit, also known as the conforming loan limit, will rise by just over 3% to a maximum of $750,000 in most areas.

2. The percentage increase is equal to the national appreciation average over the last year.

3. This is the 8th year in a row that the FHFA has raised the limit, after a decade of no increases. The limit has risen more than $330K over eight years.

Great news for buyers and owners alike

1. Buyers may be able to borrow more money through a conventional, typically lower-rate loan, potentially with lower down payment requirements.

2. Owners may be able to refinance their "jumbo" loan to a lower rate conforming loan and possibly drop mortgage insurance, too.

3. Combining (or avoiding) smaller 1st and 2nd mortgages may now be an option.

4. The increase reflects the growth in values over the past year and reaffirms your decision to invest in a home.

Curious about limits in your county or other areas? Follow the link below to check. We'll update it when limits officially change, so bookmark it for future reference if you'd like.

If you have questions about what this change could mean for you, please reach out. 888-616-9885.  And if you have friends who may benefit from the news, please pass it along. We are happy to help!

 

 

Exciting developments are underway in the mortgage industry, and we're here to bring you the most significant breakthrough in the mortgage world in the past decade.

In order to expand credit availability and access to affordable rental housing, Fannie Mae is relaxing the down payment requirements for owner-occupants on purchase and basic refinance loans for multifamily homes.  

Here's what you need to know:

• Past requirements of 15% and 25% are being changed, and you can now purchase a two-, three- or even four-family home as an owner-occupant with as little 5% down.
• This change takes effect for loans closing after November 18, 2023.

Quick Question & Answer:

1. Will this work for a property im not going to live in? No, you must plan to live in the home.

2. Do I have to occupy the property as my primary residence? Yes!

 

 

Applies To: 

• Regular Conventional Loans
• HomeReady Loans for low-income buyers
• HomeStyle Renovation Loans that combines purchase and rehab costs
• Not available for high balance loans

 

Ideal For:

• Investors
• First-time buyers and those seeking affordability
• Those looking to become an owner-occupant landlord, building equity and lowering mortgage payments

Owning a home with rental income to help subsidize your monthly costs is a great way to get started as a property owner or to secure residual income for the future. And now it's more affordable.

 

Who is Fannie Mae?

Fannie Mae is a government-sponsored enterprise that purchases mortgage loans (along with Freddie Mac). This move addresses their goal of expanding credit availability and access to affordable rental housing.

Bottom Line:

This change opens doors to homeownership for so many people! Contact the Greenway Team for more information or to see if you qualify.