Both the Federal Housing Administration (FHA) and the Federal Housing Finance Agency (FHFA) announced late last month they would increase loan limits in 2024.
The FHA floor, or lowest limit for any area of the country, will increase from $472,030 to $498,257, while the maximum amount the agency will insure will increase from $1,089,300 to $1,149,825 for a single-family property. In Alaska, Hawaii, Guam and the U.S. Virgin Islands, the ceiling rises to $1,724,725.
FHFA will increase the maximum baseline conforming loan limits in 2024 for mortgages acquired by Fannie Mae and Freddie Mac by $40,350, from $726,530 to $766,550. In high-cost markets, the new loan limit will be $1,149,825 (equal to 150% of $766,550).
In King, Pierce and Snohomish counties the one-unit limit increases to $977,500, while in all other counties in Washington state it is set at $766,550.
FHA also increased the loan limits for its Home Equity Conversion Mortgage (HECM), or reverse mortgage program, to $1,149,825 starting January 1, 2024. The new limit applies to all mortgages regardless of location.
Both entities are required to adjust their values each year to reflect changes in average U.S. home prices.
“The statutory loan limit increases announced today reflect the continued rise in home prices seen throughout most of the nation in 2023,” said Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon in a November 28 statement. “The increases to FHA’s loan limits will enable homebuyers to use FHA’s low-down-payment financing to access homeownership at a time when a lack of affordability threatens to shut well qualified borrowers out of the market.”
The 2024 FHA loan limits by Metropolitan Statistical Area (MSA) or county can be reviewed on FHA’s loan limits page.
The list of 2024 conforming loan limits for all counties and county-equivalent areas of the U.S. can be reviewed and downloaded on the FHFA website.
