New Home Loan Limits

Dated: January 24 2024

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             New Home Loan Limits Announced for 2024

As home prices continue to rise, consumers are getting a break from the

Federal Housing Administration who regulates the loan limits for

conforming and government guaranteed loan programs.

Home loans are categorized into government guaranteed, conforming, and

jumbo lending products. As the name suggests, jumbo loans are larger

loan amounts for more expensive properties and multi-unit dwellings.

These larger loans will have higher interest rates and require larger down

payments due to the risk associated with the loan. So, being able to utilize

government conforming loans can save homebuyers thousands of dollars

over the life of the loan.

According to NAR, starting in 2024, the new conforming loan limit will

increase to $766,550; an increase of $40.350. The new maximum loan

value for FHA will increase to $498,257, which is an increase of $60,000.

These baseline values are guaranteed by the federal government and

designed to give homebuyers more choice and buying power to

compensate for the higher home prices.

It’s good to note also that in more expensive areas, the conforming loan

limit is even higher. For example, in California, New York, District of

Columbia, and Hawaii the conforming loan limit will be $1,149,825.

Government guaranteed loans offer strong value to homebuyers. Not only

are they easier to qualify for, but they also require lower down payments

and lower interest rates than jumbo or non-conforming loans. As home

values continue to rise, the increase in loan limits will allow homebuyers to

find an affordable home and payment.

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MoveLiveLoveTx Team

Peter and Vicky Royster, the dynamic duo behind MoveLiveLoveTx Team, are not just real estate experts but also passionate advocates for turning houses into homes. With a shared commitment to helping i....

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