This week’s blog is a short one. More like a quick news report of something big that happened this week...
Both the FHFA (Federal Housing Finance Agency) and FHA (Federal Housing Administration) announced this week that the conforming loan limit for 2024 is getting a boost to accomidate the higher prices in the housing market.
The maximum amount in “normal” markets across America is going from the 2023 limit of $726,200 and jumping up to $766,550. That’s an increase of more than $40,000!!
And for “high-cost” markets — like Los Angeles — the new limit will be a whopping $1,149,825!
And that goes for both conventional loans as well as FHA loans (where you only need a 3.5% down payment and your credit score can be as low as 580).
The FHA also set a minimum floor (the least amount you can get an FHA loan for) at $498,357.
So what does this mean for buyers? High potential loan amounts to afford more expensive houses.
Is this also good news for sellers? You betchya! Higher loans means people can afford more house... which means you could see a lot more buyers putting in offers on homes they couldn’t afford under the 2023 loan limits!
As always, if you have any real estate needs (buying, selling, just want some information) you can reach out to me by email at [email protected] or by phone at (734) 819-3257.