Every year the Federal Housing Finance Agency adjusts the conforming mortgage limits based on home price growth. This week they announced the new limits for 2024. The new limits for Fannie/Freddie one unit homes will be $766,550! And while this is effective January 1, 2024, most lenders including us will allow you to use the new limit effective immediately.
The limits change based on the unit size – here is the breakdown:
- one unit – $766,550
- two unit – $981,500
- three unit – $1,186,350
- four unit – $1,474,400
The standard limits apply to most of the country. If you are purchasing in a high-cost area, the limits are higher. In Minnesota and Wisconsin, the standard limits apply.
FHA also came out with their new limits for 2024. These limits will be effective January 1, 2024. In Minnesota, the limit in the Minneapolis/St Paul metro area will be $515,200. For those purchasing outside the metro area, the limit will be $498,257 for most of the remainder of MN. This is also the limit for a one unit. If you are purchasing a 2-4 unit home, the limits are higher.
For FHA mortgages, the limits are:
- one unit – $515,200
- two unit – $659,550
- three unit – $797,250
- four unit – $990,800
Remember FHA mortgages must be owner occupied and you are allowed to put 3.5% down, even on a 2, 3 or 4 unit home.
Fannie Mae now allows for a down payment of 5% if you are buying a 2, 3 or 4 unit home as long as you are owner occupying it. Using FHA or Fannie Mae programs will allow you to purchase a home and rent out the other units to help you cover your housing costs.
The new loan limits will allow more home buyers to be eligible for financing in 2024 with the rising costs of home buying. Typically conforming loans have lower interest rates than jumbo loans and also have easier underwriting guidelines!
If you are in the market to buy, reach out and let me know if I can help you!
Leslie Vanderwerf, NMLS ID#335509, CrossCountry Mortgage LLC, An Equal Housing Lender, NMLS#3029 – Email – Website
