Conventional loan limits approach $800K
Every year, the Federal Housing Finance Agency (FHFA) adjusts the conforming mortgage limits based on home price growth.
The agency does this to keep pace with the market and ensure buyers have access to accommodating levels of financing. Starting January 1, 2024, new conventional loan limits will rise to $766,550 in most of the U.S. — with larger limits for high-cost areas.
Even better, you may not need to wait until the new year for the increased limits as many lenders already offer the higher borrower ceilings today.
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Conventional loan limits for 2024
The FHFA bumped up lending limits for conventional conforming loans in 2024.
The agency announced a 5.56% increase to the borrowing ceiling of conventional mortgages. For one-unit properties, this amounts to a $40,350 jump from $726,200 in 2023 to $766,550 in 2024.
This boost mirrored the annual growth rate in the FHFA’s Home Price Index through the third quarter.
“U.S. house price growth continued to accelerate in the third quarter, appreciating more than in each of the previous four quarters,” said Anju Vajja, FHFA principal associate of research and statistics. “House prices rose in the third quarter in all census divisions and are higher than one year ago, driven primarily by a low supply of homes for sale.”
Below is the full breakdown of 2024’s conventional borrowing limits by unit size, both for standard and high-cost locations:
| Unit Count | Standard Limit | High-Cost Area (Maximums) |
| 1 Unit | $766,550 | $1,149,825 |
| 2 Units | $981,500 | $1,472,250 |
| 3 Units | $1,186,350 | $1,779,525 |
| 4 Units | $1,474,400 | $2,211,600 |
The standard limits will apply to the vast majority of the country. Among the 3,234 counties and county-equivalent areas in the United States and U.S. territories, only 152 or 4.7% adhere to higher limits. Of those, 106 observe the maximum conventional borrowing limits.
Some of these high-cost locales include, San Francisco County, California; Arlington County, Virginia; and Richmond County, New York enjoy the maximum conforming loan limits, while typically expensive cities like Boston, Seattle, and San Diego fall between the standard and ceiling limits.
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Alaska, Hawaii, Guam, and the U.S. Virgin Islands — which all have their own loan rules — follow the maximum limits as well.
The bottom line
The conventional loan limit increase will help more house hunters become eligible for financing in 2024 amid the rising costs of home buying.
If you’re in the market to buy, reach out to a local lender to get the process started. And, as always, shop and compare rates to make sure you’re getting the best deal you can.
