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Every year, the both the Federal Housing Administration (FHA) and the Federal Housing Finance Agency (FHFA) adjusts the conforming mortgage limits based on home price growth.

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The agencies do this to keep pace with the market and to make sure buyers have access to the right levels of financing.

Conventional Limits

Starting January 1, 2024, new conventional loan limits will rise to $766,550 in most of the U.S. — with larger limits for high-cost areas.  These loan limits vary by county.

The agency announced a 5.56% increase to the borrowing ceiling of conventional mortgages. For one-unit properties, this amounts to a $40,350 jump from $726,200 in 2023 to $766,550 in 2024.

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FHA Loan Limits

FHA loan limits are based on the Federal Housing Finance Agency’s conforming loan limits. Each year, FHA limits are set at 65% of the new conforming loan limits.

There’s not just one FHA loan limit. Rather, borrowers can access a wide range of loan sizes depending on the type of property they’re buying and where it’s located.

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The Federal Housing Administration backs mortgages on 2-, 3-, and 4-unit properties. These types of homes have higher loan limits than single-family residences.

Although FHA allows multifamily home loans, the property must still be considered a “primary residence.” That means the home buyer needs to live in one of the units full time.

Contact Me

Do reach out to me to find out what the maximum loan limit is for a particular county, as it would be my pleasure to help!  And remember, if you decide to utilize a multi-unit property as a primary residence, low down-payment options are available!

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The blog postings on this site represent the positions, strategies or opinions of the author and do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deductions.