2024 County Loan Limits For Entitlement & VA Loans
Due to the Blue Water Navy Vietnam Veterans Act, VA loans no longer have a specified loan limit as of 2020. This significant change means eligible veterans and service members can borrow beyond traditional high-cost loan limits without a maximum cap, provided they have full entitlement. For loan amounts exceeding the high-cost limit in a given county, a down payment of 25% on the amount over the limit may be required, depending on the borrower’s remaining entitlement.
This flexibility allows VA borrowers to access higher loan amounts while benefiting from the unique advantages of VA loans, such as no private mortgage insurance (PMI) and competitive interest rates. However, it’s important to understand your entitlement and how it applies to your specific financial situation. Consulting with a VA loan expert can help you navigate these options and make informed decisions based on your entitlement and loan amount.
Click here to learn more about VA Jumbo Loans.
2024 Updated Maximum Loan Limits for Conventional and FHA Financing
Exclusive Non-Conforming Options Up to $3 Million+ Available through VA Nationwide
Effective Date: November 28, 2023
The ever-changing housing market has prompted a revision in the maximum loan limits for 2024, impacting both conventional and FHA financing. Below are the newly established figures, presented similarly to the data provided in 2023:
2024 Maximum Loan Limits for Conventional Financing:
1 Unit: $766,550
2 Units: $981,500
3 Units: $1,184,925
4 Units: $1,472,550
High Balance/Super Conforming Loan Limits for Conventional Financing:
1 Unit: $1,149,825
2 Units: $1,472,250
3 Units: $1,779,525
4 Units: $2,211,600
Note: These higher balance limits apply exclusively to certain counties where increased limits are permitted.
2024 Maximum Loan Limits for FHA Financing:
1 Unit: $498,257
2 Units: $637,950
3 Units: $771,125
4 Units: $958,350
In regions with higher living costs, the FHA "ceiling" for a single unit is set at $1,149,825, with additional exceptions for areas such as Alaska, Hawaii, Guam, and the U.S. Virgin Islands, where the limits are even higher:
1 Unit: $1,724,725
2 Units: $2,208,375
3 Units: $2,669,275
4 Units: $3,317,400
These revisions are designed to align with current home price trends, providing broader access to home financing options.
Understanding the 2024 Conforming Loan Limits
When considering mortgage choices, it's crucial to understand the conforming loan limit, which represents the highest loan amount that Fannie Mae and Freddie Mac—key government-sponsored entities in the U.S. mortgage market—are willing to purchase from lenders. Here’s a breakdown of the key points regarding the 2024 conforming loan limits:
Annual Adjustments: The Federal Housing Finance Agency (FHFA) annually updates conforming loan limits to reflect changes in average home prices nationwide. The 2024 adjustments ensure these limits remain in sync with market trends, allowing borrowers to secure financing that matches increasing property values.
Baseline Limit Increase: In most areas of the U.S., the baseline conforming loan limit has been increased. This change allows borrowers to qualify for higher loan amounts without falling into the jumbo mortgage category, which typically involves stricter underwriting requirements and potentially higher interest rates.
High-Cost Area Adjustments: In regions where 115% of the local median home value exceeds the baseline conforming loan limit, higher limits are in place. This adjustment helps borrowers in expensive markets to take out larger loans without resorting to jumbo financing, making homeownership more attainable.
Special Statutory Provisions: Certain areas, including Alaska, Hawaii, Guam, and the U.S. Virgin Islands, have higher loan limits due to the elevated costs associated with living and building in these regions. These provisions ensure residents have access to financing that reflects their unique economic circumstances.
Borrower Advantages: The increase in conforming loan limits offers several benefits, such as greater flexibility in loan options, access to potentially lower interest rates, and enhanced purchasing power in both standard and high-cost areas.
For homebuyers and those planning to build, purchase, refinance, or renovate, it's essential to be aware of these updates and how they might influence your borrowing options. Consulting with a mortgage expert can provide clarity on these changes and help you make informed decisions that align with your financial objectives and the current housing market.
Summary of 2023 Loan Limits
To provide context, here is a brief comparison with the 2023 limits:
The baseline conforming loan limit for a single unit in 2023 was $726,200, which has now been increased to $766,550 for 2024.
High-cost area limits for a single unit in 2023 were capped at $1,089,300, now raised to $1,149,825 in 2024.
Similarly, FHA loan limits have seen adjustments, with the 2023 ceiling for a single unit at $1,089,300, now elevated to $1,149,825 for 2024.
These changes reflect the ongoing adjustments needed to accommodate rising home prices and ensure that borrowers continue to have access to necessary financing options.
