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For a loan to be considered a "jumbo" mortgage, the loan amount must exceed conventional conforming loan limits, which are set by two government-sponsored enterprises - Fannie Mae and Freddie Mac. These two corporations set the limit on the maximum value of any
individual mortgage they will purchase from a lender. Currently, the 1-unit conforming loan limit has a base line of $726,200.
It is also true
that some conforming loan limits may exceed $726,200.
High-cost areas
In areas where 115 percent of the local median home value exceeds the baseline loan limit, the maximum area loan limit will be higher. HERA sets the maximum loan limit as a function of the area median home value, while setting a "ceiling" on that limit of 150 percent of the baseline loan limit.
This year, median home values generally rose in high-cost areas. Because the baseline loan limit will be higher in 2024, the new ceiling limit will also be higher. The new ceiling loan limit, which applies in areas with the most expensive homes, will be $1,089,300 (150 percent of $726,200) for one-unit properties in the contiguous U.S.
Special statutory provisions establish different loan limit calculations for Alaska, Hawaii, Guam and the U.S. Virgin Islands. In these areas, the baseline loan limit will be $1,089,300 for one-unit properties, but actual loan limits may be higher in some specific locations.
.
In some cases, there are loan products that have elevated conforming loan limits, which give borrowers the ability to obtain mortgages exceeding the normal $726,200. The availability of these loans varies by county. The U.S. Housing Department has a useful tool on their website, in which you can
find limits in each state/county.
For a loan to be considered a "jumbo" mortgage, the loan amount must exceed conventional conforming loan limits, which are set by two government-sponsored enterprises - Fannie Mae and Freddie Mac. These two corporations set the limit on the maximum value of any
individual mortgage they will purchase from a lender. Currently, the 1-unit conforming loan limit has a base line of $726,200.
It is also true
that some conforming loan limits may exceed $726,200.
High-cost areas
In areas where 115 percent of the local median home value exceeds the baseline loan limit, the maximum area loan limit will be higher. HERA sets the maximum loan limit as a function of the area median home value, while setting a "ceiling" on that limit of 150 percent of the baseline loan limit.
This year, median home values generally rose in high-cost areas. Because the baseline loan limit will be higher in 2024, the new ceiling limit will also be higher. The new ceiling loan limit, which applies in areas with the most expensive homes, will be $1,089,300 (150 percent of $726,200) for one-unit properties in the contiguous U.S.
Special statutory provisions establish different loan limit calculations for Alaska, Hawaii, Guam and the U.S. Virgin Islands. In these areas, the baseline loan limit will be $1,089,300 for one-unit properties, but actual loan limits may be higher in some specific locations.
.
In some cases, there are loan products that have elevated conforming loan limits, which give borrowers the ability to obtain mortgages exceeding the normal $726,200. The availability of these loans varies by county. The U.S. Housing Department has a useful tool on their website, in which you can
find limits in each state/county.