2024 Conforming Loan Limits Revealed What You Need to Know!!

Transcript

Hello, Scott Bill from Texas Home Loans. Welcome to our channel. In this video, we are going to provide an insightful breakdown of the 2024 conforming loan limits. So let’s dive right in. The conforming loan limits are the maximum that Fannie and Freddie will allow to borrow for a loan. How does it impact you and what, how does that impact your, your purchase choices and your lending choices?

Well, it makes a huge difference. It’s a tipping point between having going to a jumbo loan was typically 20 percent down as opposed to doing as little as 5 percent down. And if you’ve got good credit scores more insurance is quite cheap. I just ran a scenario on a 600, 000 purchase, high FICO scores, 5 percent down.

and the mortgage insurance was 113 a month, much lower than it was in the past. And you might ask why that is because it’s a risk based business and they’re rewarding the people of high FICO scores. So if you got high FICO scores, that low down payment might be a way to keep money working for you as opposed to putting in the house.

Putting 20 percent is always smart. But you have choices and you wanna look at those and weigh what makes sense for you at that point. So that being said, starting in 2024, the, the conforming loan limit goes from 2 76 7 26, 200 up to seven 50. So that allows you to borrow more with lower down payments or get better rates.

It’s adjusted annually. This is to keep up with the housing market and what’s available. They don’t want to go too high, but they also don’t want to, they will have to maintain obtaining financing for most people. So before you go out celebrating is a point, you know, the limits apply to conventional mortgages only this this is if you’re considering.

FHA, VA, USDA separate rules and limits will be in place. We can do up to 2 million for VA. So that’s something you can open up dialogue, but the others are not FHA and USDA do not follow conforming loan limits. In conclusion, understanding the 2024 loan limits is crucial in planning on your purchasing and which loan you’re going to get when you do purchase your home and occupy your product, your residence.

This is valuable. And we appreciate your business and we want to help you here at Texas Home Loans. Give us a call anytime 830 929 7100 and thank you and we’ll talk to you soon.