Conforming Loan Limit Increases to $802,650
If you're looking to buy a home or refinance in this latter part of 2024, there’s great news! The conforming loan limit is increasing from $766,550 to $802,650, opening the door to more borrowing power and better loan options—whether you're a first-time homebuyer or someone looking to move up to a larger home.
Why a Higher Loan Limit Matters
The conforming loan limit is the maximum loan amount that can be backed by Fannie Mae and Freddie Mac, which often come with lower interest rates and easier qualification criteria compared to jumbo loans. A higher limit allows you to buy a more expensive home without having to turn to jumbo loans, which typically require larger down payments and stricter credit standards.
Lower Downpayment, Bigger Home
One of the biggest benefits of the new loan limit is the ability to access more financing while still putting down a smaller down payment. Here's how it breaks down:
First-Time Homebuyers: You can now purchase a home with as little as 3% down, even with the new higher limit! This means you could buy a home priced up to $826,000 and still qualify for conforming loan rates and the low 3% down option.
Returning Homebuyers: If you’ve bought a home before, you can take advantage of a 5% down payment option on the higher loan limit. This gives you the ability to upgrade to a larger home without needing to save for a huge down payment.
This expanded access to funding can make a significant difference, especially in today’s competitive real estate market. In some higher-cost areas, where home prices have steadily increased, the higher conforming loan limit will allow you to qualify for better loan terms on a larger property without having to resort to a jumbo loan.
What About FHA and VA Loan Limits?
While the conforming loan limit increase is already in place for 2024, FHA and VA loan limits will likely be updated closer to the start of 2025. These government-backed loans are also affected by changes in the conforming loan limit, so if you’re planning to buy with an FHA or VA loan, stay tuned for more updates as we get closer to next year.
Lenders Already Accepting the New Loan Limit
Here’s more good news: 4 of our 13 lenders are already accepting the new conforming loan limit of $802,650, so you can start applying for loans that take advantage of these expanded limits immediately!
Whether you're looking to buy your first home, move into something bigger, or refinance your current mortgage, this increase in loan limits gives you more flexibility and better opportunities to secure affordable financing.
Next Steps
Curious how the new loan limit can impact your buying power or refinancing options? Reach out today to explore how this change could help you achieve your homeownership goals, whether it’s through purchasing a new home or refinancing your current mortgage to save on interest.
