Conventional Loans

Conventional Loan Limits Increase in 2024

New York Conventional Loans

In 2024, the real estate market is undergoing significant changes, particularly concerning conventional loan limits. We are thrilled to provide you with a comprehensive overview of these changes and their implications for homebuyers and investors. The following article delves deep into the conventional loan limits set for 2024, offering valuable insights to ensure you are well-prepared for your next real estate transaction.

Understanding Conventional Loans

Before we delve into the updated loan limits for 2024, it’s essential to grasp the basics of conventional loans. These loans are not insured or guaranteed by the federal government, unlike FHA or VA loans. They are typically offered by private lenders and are popular among borrowers with strong credit histories and stable financial backgrounds.

Historical Context

To appreciate the significance of the 2024 changes, it’s crucial to understand the historical context. Conventional loan limits have traditionally been adjusted based on the Federal Housing Finance Agency (FHFA) guidelines. These limits determine the maximum loan amount that can be considered “conventional” without requiring jumbo financing.  

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The 2024 Update

In 2024, the FHFA announced a notable increase in conventional loan limits, reflecting the ever-evolving real estate market. These new limits aim to accommodate the rising home prices across the country. Let’s take a closer look at what this means for homebuyers and investors:

Increased Loan Limits

The new conventional loan limits for 2024 have been raised significantly compared to previous years. This increase provides borrowers with more flexibility, allowing them to purchase homes in higher-priced markets without resorting to jumbo loans.

Greater Accessibility

With the higher loan limits, more prospective buyers can now access conventional loans, as they align better with the current cost of housing in various regions. This greater accessibility can stimulate the real estate market by increasing demand.

Competitive Advantage

For those considering real estate investments, these higher limits offer a competitive advantage. Investors can now finance more substantial properties while benefiting from the advantages of conventional financing, such as lower interest rates and more favorable terms.

Will 2024 Conventional Conforming Loan Limits Increase?

The projected baseline conventional loan limits, also referred to as conforming loan limits, for the year 2024 are anticipated to experience a growth of approximately 3.28%. This increase would result in a rise of $23,800, bringing the limit for one-unit properties to $750,000.

As of the current date, which is toward the end of the third quarter, we do not have access to third-quarter data since the quarter has not concluded yet. However, we can gain valuable insights by examining year-over-year data for the second quarter (Q2). According to the Federal Housing Finance Agency (FHFA), the determination of loan limits for the year 2023 was based on the following calculation: = (2022 Q3 HPI – 2021 Q3 HPI) / 2021 Q3 HPI = (369.50228847 – 329.29910809) / 329.29910809 = 12.20871220 percent

This calculation revealed that the conforming loan limit was projected to increase by 12.2% from 2022 to 2023. Now, if we apply the same formula using the most recent data available, which is for the second quarter of 2023 (2023 Q2), the calculation looks like this: Percentage Change: = (2023 Q2 HPI – 2022 Q2 HPI) / 2022 Q2 HPI = (379.68 – 365.37) / 365.37 = 3.9 percent

If the loan limits for 2024 were determined based on the 2023 Q2 data, we would anticipate a conforming loan limit increase of 3.9%, going from $726,200 in 2023 to $754,500 in 2024. Applying the same rationale, high-cost loan limits, which are typically set at 150% of the standard limit, would increase from $1,089,300 in 2023 to approximately $1,131,750 in 2024. In summary, under the assumptions mentioned above, the projected 2024 conventional loan limits would be as follows:

  • Conforming Loan Limit: $754,500
  • High-Cost Loan Limit: Approximately $1,131,750 (150% of the standard limit)


Standard Area Limits 2024 Estimate

Maximum High-Cost Limits 2024 Estimate













Preparing for Your Next Real Estate Transaction

Now that you are aware of the increased conventional loan limits for 2024, it’s essential to be well-prepared for your next real estate endeavor. Here are some key steps to consider:

Check Your Eligibility

Ensure that you meet the necessary credit score and income requirements to qualify for a conventional loan under the new limits. Consulting with a mortgage advisor can be highly beneficial in this regard.

Explore Local Market Conditions

Research the housing market in your desired location. Understand how the increased loan limits impact property prices in your area, and assess whether it’s the right time to buy or invest.

Consult with Professionals

Real estate transactions can be complex. Seek guidance from experienced real estate agents and mortgage brokers who can provide valuable insights and assist you throughout the process.

Conventional Loans Benefits

Conventional loans are a popular mortgage option for many homebuyers. Here are some benefits of choosing a conventional loan:

  1. Flexibility: Conventional loans come in various terms, such as 10, 15, 20, and 30 years, allowing borrowers to choose a term that fits their financial situation and goals.
  2. No Upfront Mortgage Insurance: Unlike some government-backed loans, conventional loans don’t require an upfront mortgage insurance premium, which can save borrowers money.
  3. Higher Loan Limits: In many areas, conventional loans offer higher borrowing amounts than government-backed loans.
  4. Diverse Property Types: Conventional loans can be used for primary residences, second homes, and investment properties, giving borrowers more versatility.
  5. Rate Choices: Borrowers can choose between fixed-rate and adjustable-rate mortgages.
  6. No Government Involvement: As they are not insured or guaranteed by the federal government, there’s no need to meet any additional governmental guidelines or potential bureaucracy.
  7. Potential for Lower Rates: Depending on your credit score and down payment, you might be able to secure a lower interest rate with a conventional loan compared to some government-backed loans.
  8. Refinancing Flexibility: Conventional loans allow homeowners to refinance their mortgage if interest rates drop, potentially leading to lower monthly payments.
  9. Fewer Restrictions: There might be fewer property condition requirements compared to some government-backed loans.

When considering a conventional loan, it’s essential to compare it to other loan products and consult with a mortgage professional to ensure it’s the right fit for your financial situation and homebuying goals.


In conclusion, the increase in conventional loan limits in 2024 presents exciting opportunities for homebuyers and investors alike. With higher loan limits, greater accessibility, and a competitive edge in the real estate market, it’s essential to stay informed and take advantage of these changes. Whether you’re purchasing a new home or exploring real estate investments, understanding the 2024 loan limits is a vital step toward your success in the world of real estate.

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Simple Application & Approval Process

We simplify the home financing process through our intuitive online platform, allowing you to quickly apply and secure pre-qualification for a home loan. With our dedicated mortgage experts providing timely responses and assistance, your journey to home financing is both smooth and efficient.

  Conventional Loans, FHA, VA Loans are some of the most common loan programs. They’re great for buyers regardless of credit history or income! If you need help with your mortgage but don’t know where to start – Jet Direct Mortgage can help and and find out what’s best suited fit within each program designed specifically for homeowners like yourself.

Our mortgage lenders have successfully helped hundreds of borrowers in Staten Island secure the financing that they need.

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What’s the difference between a Mortgage Banker and a Mortgage Broker?

Both mortgage bankers and mortgage brokers assist individuals in securing loans for real estate purchases, but they have distinct roles. A mortgage banker lends directly to borrowers, overseeing the loan’s underwriting and furnishing the required funds for a home purchase. On the other hand, a mortgage broker acts as an intermediary, collaborating with various lenders to identify the most suitable loan for a borrower. Rather than directly supplying the loan funds, a mortgage broker guides the borrower to the right lender and streamlines the loan application, typically in exchange for a fee.

What is a Mortgage Banker?

A mortgage banker directly offers home loans to potential buyers. They handle the loan’s underwriting and supply the needed funds for a home purchase. Mortgage bankers might be part of larger financial entities like banks or operate as standalone firms specializing in home loans. Their role includes assessing a borrower’s financial standing and credit history to gauge repayment capabilities. They also collaborate with borrowers to pinpoint the optimal loan type and terms. Additionally, some mortgage bankers might provide further financial services, including guidance on home buying or loan refinancing.

Benefits of using a Mortgage Banker

Opting for a mortgage banker when securing a home loan comes with several perks. Foremost, since mortgage bankers are direct lenders, they offer a variety of loan choices and can tailor loans to fit individual borrower needs. This is particularly beneficial for those with unique financial conditions or credit issues. As direct lenders, mortgage bankers can often expedite loan application decisions, a plus for those on tight home-buying schedules. Furthermore, interacting with a mortgage banker ensures a more personal touch, as borrowers communicate directly with the lender, bypassing any intermediaries or brokers.

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