This is a YouTube video titled "New 2024 Conforming Loan Limits!" containing a detailed explanation about the updated conventional and FHA loan limits for 2024. The speaker discusses the implications of these changes on the mortgage market, home values, and interest rates, providing insights relevant to home buyers and real estate professionals. The content was created in December 2023.
Fannie Mae just rolled out their new conventional performing low limits for 2024. They updated their low limit from $726,000 up to $766,550. FHA updated their low limit from 472 up to 498. 257 FHA go live on January 1st conventional. We are honoring it right away today. Now what this means is FHA and Fannie are backing or insuring loans within this loan limit, which means if less risk to the entire mortgage market, which means consumers get their best interest rates as long as their loans are within these limits. You also can buy a house above these limits as long as the down payment brings the loan amount back within the limits and you still can get the better pricing. And if it's a high cost area or multi unit family, these limits extend. We can dive into that as well. But I think the big takeaway here is Fannie and FHA which are usually pretty conservative. They just put a 5 1/2% increase on home values for 2023 in a very tough year for real estate interest rates. Almost 25 year highs. So home values are resilient. Buyers keep this in mind because rates are planning to drop next year and when that happens, home values are going to shoot up because they already did that in a very tough year.
