Are you considering buying or refinancing a home shortly? If so, you might be interested to know that the Federal Housing Finance Agency (FHFA) and the Federal Housing Administration have recently announced the new loan limits for 2024. The loan limit represents the maximum residential mortgage loan amount the government will allow in a certain geographical location…

For 2024, the maximum new loan limit is $1,149,825 for some high-cost counties throughout the United States. This is good news for those who were previously limited by the loan limits and had to opt for a jumbo mortgage loan which typically requires a down payment of 10% or more.

What does this mean for you? It means that you could purchase a home and put down as little as 5% and get financing up to $877,450 on a conventional standard loan backed by Fannie Mae or Freddie Mac. You could put down just 3.5% down on an FHA Loan to $877,450. The loan limit increase will open the door for more families to purchase or refinance with less-than-perfect credit and/or needing more flexible credit standards due to, for example, credit score, equity, debt ratio, or income.

Keep in mind that loan limits for both FHA Loans and Conventional Loans are now higher for 2024 as the ongoing demand for homeownership persists. Be sure to check the loan limits for your area and take advantage of the opportunity to purchase or refinance with more flexible credit standards.

This news is especially timely as the real estate market continues to be red-hot across the country. With mortgage rates still at historic lows, now may be the perfect time to take advantage of these new loan limits and make your dream of homeownership a reality.

We hope this information has been helpful in your home-buying or refinancing journey. If you have any questions or would like to explore your options further, don’t hesitate to reach out to a trusted financial advisor or mortgage lender.

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