Navigating the 2024 Conforming Loan Limit Increase: Your Path to Enhanced Homeownership

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In a promising development for prospective homebuyers and current homeowners alike, the conforming loan limits for mortgages are set to increase in 2024. This adjustment, announced by the Federal Housing Finance Agency (FHFA), brings with it valuable opportunities for those entering the real estate market or considering refinancing. 

How to Understand conforming loan limits: 

The baseline conforming loan limit for mortgages backed by Fannie Mae and Freddie Mac in 2024 will see a notable uptick, rising to $766,550. This reflects a substantial 5.5% increase compared to the current limit of $726,200. It's a clear indication of the Federal Housing Finance Agency's commitment to keeping pace with the dynamic nature of the housing market. 

How are conforming loan limits set?  

Conforming loan limits are based on home prices. Each year, conforming loan limits are updated based on home prices. That means that in some areas, the conforming loan limit is higher than in others based on how much the homes are worth in those areas. For areas where 115% of the local median home value surpasses the baseline conforming loan limit, the Housing and Economic Recovery Act (HERA) establishes a ceiling at 150% of the baseline limit. In practical terms, this means that the new ceiling loan limit for one-unit properties will be an impressive $1,149,825. 

What do the new loan limits mean for Homebuyers? 

1. Expanded Home Options:

The increased baseline limit of $766,550 offers prospective homebuyers the flexibility to consider a broader range of properties without venturing into the realm of non-conforming or jumbo loans. With a higher loan limit considered conforming, homebuyers have increased purchasing power, which makes your dream home more attainable. Read more about the loans we offer here.  

2. Competitive Rates for Larger Loans:

Current homeowners seeking to refinance—or those looking for larger loan amounts—can take advantage of the competitive interest rates associated with conforming loans. The uptick in limits ensures that even larger mortgages can fall within the conforming category, allowing borrowers to secure favorable terms. 

3. Geographic Considerations:

The understanding that home prices can vary by market is helpful for homebuyers. A house in California or Hawaii is more expensive than the same house in Ohio. By acknowledging that variation, conforming loan limits are better designed to help homebuyers. The 150% ceiling of the baseline limit recognizes the diverse nature of housing markets, ensuring that individuals in areas with higher property values can still benefit from the increased limits. 

What are the steps to buy a home? 

1. Assess Your Eligibility:

With the new baseline and ceiling limits in mind, assess your current financial situation to determine your eligibility for these expanded loan amounts. Consider factors such as income, credit score, and existing debt to make informed decisions. 

2. Explore Loan Packages:

Connect with our team of mortgage specialists to explore the various loan packages available to you. This gives you a chance to understand how the increased conforming loan limits align with your unique financial goals and homeownership aspirations. 

3. Secure Favorable Rates:

Given the potential rise in demand resulting from higher conforming loan limits, consider securing your interest rates promptly. Doing so ensures that you can lock in the most favorable terms and protect yourself from potential rate fluctuations in the future. 

In conclusion, the 2024 conforming loan limit increase is a positive development for consumers in the mortgage market. At Armed Forces Bank, we are dedicated to helping you navigate these changes and make the most of the opportunities presented by the new loan limits. Your journey to enhanced homeownership begins with understanding these changes, and our team is here to guide you every step of the way. 


Subject to credit approval. Each loan product listed has specific terms and conditions. Fees apply. 

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