Conforming Loan Limits Jumped in 2024 — Here's What That Means for Your Mortgage

What Changed

The federal government raised the maximum amounts it will guarantee on single-family mortgages for 2024, and the increases are substantial. The Federal Housing Finance Agency (FHFA), which regulates Fannie Mae and Freddie Mac, set its new conforming loan limit at $766,550 — a $40,350 jump from 2023's baseline of $726,200.^[1] The Federal Housing Administration (FHA) went further, raising its limit to $498,257, an increase of $60,000 from the prior year.^[1]

Federal law requires both agencies to adjust these limits annually to keep pace with U.S. home prices. According to FHFA's House Price Index, home values rose 5.6% on average between the third quarters of 2022 and 2023, which is what triggered the increases.^[1]

Why It Matters to You

The conforming loan limit is the ceiling for mortgages that Fannie Mae, Freddie Mac, and FHA will guarantee. Loans above those amounts are called jumbo loans, which typically come with stricter requirements, higher interest rates, and more stringent underwriting.^[2]

When limits rise, some buyers who previously needed a jumbo loan can now finance under the conforming threshold instead. That can mean access to lower rates, simpler qualification guidelines, and more lender options.

FHA loans in particular are popular among first-time buyers because they require lower down payments and credit scores compared to conventional mortgages.^[1] The $60,000 increase to FHA's limit means buyers in more markets can use that program rather than being pushed into non-conforming territory.

High-Cost Areas Get Even Higher Limits

If you're buying in a pricey market, the cap is higher. FHFA allows limits up to $1,149,825 in counties where median home prices are significantly above the national average. That includes parts of California, New York, Washington D.C., and Hawaii.^[1]

Check FHFA's county-by-county list to see the exact limit for your area.^[1]

What You Can Do With This

If you're shopping in a price range that straddled the old limits, the 2024 increase may change what's available to you. A buyer who previously needed a jumbo loan at a higher rate might now qualify for a conventional or FHA loan at better terms.

These limits apply to loans originated in 2024. If you're in contract now or planning to buy early this year, your lender should be working with the new figures.

Bottom Line

The conforming loan limit increases reflect a simple math adjustment — home prices went up, so the government raised the ceiling it will back. That expansion gives more buyers a path to federally guaranteed financing instead of costly jumbo products. Whether that helps you depends on your target price range and local market limits, but it's a factor worth discussing with your lender.

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^[1]: "FHA, FHFA Announce Higher Conforming Loan Limits in '24," National Association of REALTORS®, November 28, 2023. https://www.nar.realtor/magazine/real-estate-news/fha-fhfa-announce-higher-conforming-loan-limits-in-24

^[2]: "FHFA Conforming Loan Limit Values," U.S. Federal Housing Finance Agency. https://www.fhfa.gov/data/conforming-loan-limit