Correspondent ALERT – 2024 Loan Limit Increase
The conforming loan limit increases announced by the Federal Housing Finance Agency (FHFA) for the 2024 calendar year will be available at Arc Home, effective December 4, 2023, for all new and existing loan registrations. Arc Home systems and third-party pricing engines will be updated on December 4, 2023.
The standard loan limits, as well as limits for high-cost areas, are defined in the tables below. The loan limits vary by county and unit, please refer to the FHFA Conforming Loan Limits for complete details.
|
FHFA Standard Loan Limits |
||
|
Units |
Contiguous States & District of Columbia |
Alaska & Hawaii |
|
1 |
$766,550 |
$1,149,825 |
|
2 |
$981,500 |
$1,472,250 |
|
3 |
$1,186,350 |
$1,779,525 |
|
4 |
$1,474,400 |
$2,211,600 |
|
FHFA High-Cost Area Loan Limits* |
||
|
Units |
Contiguous States & District of Columbia |
Alaska & Hawaii |
|
1 |
$1,149,825 |
Not Applicable |
|
2 |
$1,472,250 |
|
|
3 |
$1,779,525 |
|
|
4 |
$2,211,600 |
* Alaska and Hawaii do not have any high-cost areas in 2024
Fannie Mae, Freddie Mac, Conventional Investment Property, and FNMA/FHLMC Second Home & Investment Property
Fannie Mae Desktop Underwriter (DU) and Freddie Mac Loan Product Advisor (LPA) were updated with the increased limits on December 3, 2023. Loans may close in 2023 with the increased 2024 loan limits provided the AUS meets the Arc Home program requirements. Loans currently in the pipeline must be resubmitted to DU and/or LPA on or after December 4, 2023 for the increased 2024 loan limits, as applicable.
Jumbo Express and Jumbo Prime (Non-Delegated Correspondent)
The minimum loan amount for the Jumbo Express and Jumbo Prime programs will be updated soon within the Arc Home systems to reflect the new base conforming loan limits.
FHA
Per Mortgagee Letter 2023-21, FHA announced the new 2024 mortgage loan limits effective for case numbers assigned on or after January 1, 2024. FHA loans with the increased loan limits must not be registered with Arc Home, have a case number ordered, OR have an appraisal ordered until on or after January 1, 2024.
The FHA Mortgage Limits page has been updated to include the new 2024 loan limits.
|
FHA Mortgage Limits |
|||
|
Units |
Low-Cost Area “Floor” |
High-Cost Area “Ceiling” |
Special Exceptions for Alaska & Hawaii |
|
1 |
$498,257 |
$1,149,825 |
$1,724,725 |
|
2 |
$637,950 |
$1,472,250 |
$2,208,375 |
|
3 |
$771,125 |
$1,779,525 |
$2,669,275 |
|
4 |
$958,350 |
$2,211,600 |
$3,317,400 |
VA
VA loans closed on or after January 1, 2024 may use the increased FHFA loan limits. As a reminder, the maximum loan amount permitted by Arc Home for VA transactions is $1,000,000.
VA does not impose a maximum loan amount that a veteran may borrower; however, VA does impose a maximum amount that may be guaranteed.
· For veterans with full entitlement, VA will guaranty 25% of any loan amount.
· For veterans with partial entitlement, the maximum amount of guaranty is the lesser of 25% of the loan amount OR the applicable year’s conforming loan limit for a 1-unit property reduced by the amount of entitlement previously used by the veteran.
§ For loans closed on or after January 1, 2024, the partial entitlement calculation is based on the 2024 conforming loan limits.
§ For loans closed prior to January 1, 2024, the partial entitlement calculation must be based on the 2023 conforming loan limits.