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!