Conforming Loan Limits For 2024

Set by the Federal Housing Finance Agency (FHFA), conforming loan limits cap the amount that can be financed through mortgages acquired by government-sponsored enterprises (GSEs) like Fannie Mae and Freddie Mac.

For 2024, the conforming loan limit for a one-unit property in much of the country is $766,550, which is a 5.6% increase from the 2023 limit of $726,200. In high-cost areas, loans are capped at $1,149,825, up from $1,089,300 last year.

Conforming Loan Limits 2024

Each year, the FHFA adjusts the conforming loan limits based on its third quarter House Price Index (HPI). In 2024, the limit for a one-unit property is $766,550. However, home buyers in high-cost areas may be eligible to take out loans for as much as $1,149,825 for a single-family home.

	Conforming Loan, Baseline	Conforming Loan, High-Cost Area
One-unit home	$766,550	$1,149,825
Two-unit home	$981,500	$1,472,250
Three-unit home	$1,186,350	$1,779,525
Four-unit home	$1,474,400	$2,211,600

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If you need to borrow more than the conforming loan limit, you’ll need to take out a non-conforming loan, otherwise known as a jumbo loan. Jumbo loan limits are set by the lender.

What Is a Conforming Loan?

A conforming loan is one that meets the guidelines of the three GSEs: Freddie Mac, Fannie Mae and Ginnie Mae. The GSEs are responsible for buying about 70% of all mortgages from lenders, which means that most borrowers will have to stick to these limits in order to qualify for a conventional loan.

If you go beyond the conforming loan limit in your area, then you’ll have to apply for a jumbo mortgage, which usually has stricter credit and income requirements. In addition to a higher credit score, jumbo mortgage lenders may:

• Ask for a larger down payment
• Require a lower debt-to-income ratio
• Ask for an additional appraisal
• Charge you a higher mortgage rate

Why Borrowing Limits Increased

Each year home prices are analyzed to determine whether conforming loan limits should be raised, per the Housing and Economic Recovery Act (HERA). HERA dictates the baseline maximum conforming loan limits for the GSEs, which adjusts with the average price of a home in the U.S. The prices are based on the FHFA’s HPI.

Because the FHFA HPI jumped by 5.56%, on average, between the third quarters of 2022 and 2023, the baseline maximum conforming loan limits also increased by that percentage.

Expensive Housing Markets Have Higher Loan Limits

In some areas of the country, where the local median home value exceeds the baseline conforming loan limit by 115%—San Francisco, Seattle and New York, for example—the government sets a higher borrowing ceiling.

For 2024, according to HERA rules, high-cost areas will get a maximum limit of $1,149,825—150% of the baseline loan limit, which is $766,550.

States and Counties With New Loan Limits Up to $1,149,825

Historical Conforming Loan Limit Values

Generally speaking, the conforming loan limit increases every year. However, from 2006 to 2016, the conforming loan limit remained unchanged at $417,000, so it’s not always guaranteed. Check out the table below to see the baseline conforming loan limit values over the last 10 years.

Year	One-unit home	Two-unit home	Three-unit home	Four-unit home
2024	$766,550	$981,500	$1,186,350	1,474,400
2023	$726,200	$929,850	$1,123,900	1,396,800
2022	$647,200	$828,700	$1,001,660	$1,244,850
2021	$548,250	$702,000	$848,500	$1,054,500
2020	$510,400	$653,550	$789,950	$981,700
2019	$484,350	$620,200	$749,650	$931,600
2018	$453,100	$580,150	$701,250	$871,450
2017	$424,100	$543,000	$656,350	$815,650
2016	$417,000	$533,850	$645,300	$801,950
2015	$417,000	$533,850	$645,300	$801,950
2014	$417,000	$533,850	$645,300	$801,950

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What Does This Mean for Consumers?

A hike in conforming loan limits gives home buyers the advantage of keeping up with rising home prices by having the ability to secure a mortgage that falls within the GSE limits. If home prices rise and the conforming loan limits do not, then home buyers would either have to come up with the difference in cash or get a jumbo loan—two options that are not viable for many borrowers.