**Title: Understanding the 2024 Mortgage Loan Limit Increases and Their Impact on Your Buying Power**
**Introduction**
Each year, the Federal Housing Finance Agency (FHFA) releases new loan limits for conforming loans based on the third quarter House Price Index report. The new limits for 2024 are out, and they have increased. This article will help you understand these changes and how they can affect your mortgage options with O1ne Mortgage Inc.
**Understanding the Loan Limit Changes**
The loan limits you are eligible for depend on your location, the timing of your loan application, and the type of mortgage you are applying for. We will cover three main loan types: conventional, VA, and FHA loans. But first, let’s see how O1ne Mortgage clients can benefit from higher limits on conventional loans starting now.
**2025 Buying Power in 2024**
Each year, the FHFA sets limits for loans purchased by Fannie Mae and Freddie Mac, the biggest backers of conventional loans, based on data from the FHFA House Price Index. Because lenders hold loans in their portfolio for several months before selling them to Fannie or Freddie, O1ne Mortgage can offer higher loan limits before the official announcement. Limits have increased by about 4.71% over last year. Here are the new limits available starting today:
| Number of Units | Continental U.S. | Alaska and Hawaii |
|—————–|——————|——————-|
| 1 | $802,650 | $1,203,975 |
| 2 | $1,027,750 | $1,541,625 |
| 3 | $1,242,250 | $1,863,375 |
| 4 | $1,543,900 | $2,315,850 |
In high-cost areas, existing limits for 2024 still apply.
**2024 Conventional Loan Limits**
Baseline conventional loan limits for 2024 have increased by roughly 5.56% compared to 2023, rising $40,350 to $766,550 for one-unit properties. Limits in high-cost counties are set on a county-by-county basis, with the upper limit being $1,149,825. Heres a breakdown:
| Number of Units | Continental U.S. | Alaska and Hawaii |
|—————–|——————|——————-|
| 1 | $766,550 | $1,149,825 |
| 2 | $981,500 | $1,472,250 |
| 3 | $1,186,350 | $1,779,525 |
| 4 | $1,186,350 | $2,211,600 |
**VA Loan Limits**
Under normal circumstances, VA loans do not have loan limits. However, there are instances where VA loan limits apply, such as when you have impacted entitlement. In these cases, the limits listed above apply. O1ne Mortgage offers VA jumbo loans up to $2.5 million if you qualify.
**FHA Loan Limits**
FHA loan limits are updated at the beginning of each calendar year and are effective January 1. The minimum and maximum loan amounts for residential properties with up to 4 units are set at the county level. For 2024, the lowest loan limit for a 1-unit property is $498,257, which is 65% of the national conforming loan limit. Alaska and Hawaii have higher limits due to higher construction costs.
To find the limits in your area, you can use the Department of Housing and Urban Development’s mortgage limits search engine. Select Fannie/Freddie under limit type and CY2024 for the limit year to see the current limits.
**Why Loan Limits Matter**
The conforming loan limit in your area is crucial because amounts above these limits are considered jumbo loans. While O1ne Mortgage offers several benefits for jumbo loans, including lower down payment requirements and no required mortgage insurance, you will still need to meet stricter qualification standards. Additionally, conforming loans often have lower interest rates compared to jumbo loans due to the perceived increased risk of larger loan amounts.
**The Bottom Line**
The increase in loan limits across the country means that you can afford more home without the additional qualification requirements of a jumbo loan. With loan limits up more than 4.7% for conventional loans, this represents a significant increase in your purchasing power.
If youre interested in exploring your loan options, you can apply online at [O1ne Mortgage Inc.](https://o1nemortgage.com) or call us at 888-372-8820 to speak with a mortgage expert.
**Keywords:** mortgage loan limits, conforming loans, VA loans, FHA loans, 2024 loan limits, O1ne Mortgage Inc., higher loan limits, mortgage options, home buying power, jumbo loans
