What is the new Fannie Mae loan limit?
The new mortgage limit for conventional loans backed by Fannie and
Conforming limits are usually set at 115% of the median home price for each area, though they can exceed this level in some high-cost areas. The 2024 conforming limit for most counties in California State is $766,500.
| Subject Property Occupancy | Transaction | Maximum Number of Financed Properties |
|---|---|---|
| Principal residence | Transactions other than HomeReady loans | No limit |
| Principal residence | HomeReady loans | DU and manually underwritten - 2 |
| Second home or Investment property | All | DU - 10 |
The baseline conforming loan limit in 2024 for single-family dwellings is $766,550 for most of the United States, but it depends on where you live. The conforming loan limit is the maximum amount of money a homebuyer can borrow using a conventional mortgage that's eligible for purchase by Fannie Mae and Freddie Mac.
We now expect the 30-year fixed rate mortgage rate to average 6.6 percent in 2024 and 6.2 percent in 2025, upgrades of four-tenths and five-tenths, respectively. However, interest rates remain volatile, particularly given changes in Fed policy expectations, which adds risk to our outlook for interest rates.
FHA loan limits rise by over $26K
FHA loan limits are increasing in 2024. The new baseline limit — which applies to most single-family homes — will be $498,257.
Today's national jumbo mortgage interest rate trends
For today, Sunday, April 21, 2024, the national average 30-year fixed jumbo mortgage interest rate is 7.38%, up compared to last week's of 7.21%. The national average 30-year fixed jumbo refinance interest rate is 7.39%, up compared to last week's of 7.25%.
Often, a mortgage is considered non-conforming because it's for an amount higher than the conforming loan limit ($766,550 for most mortgages in 2024), also known as a jumbo loan. A loan could also be considered non-conforming if the borrower doesn't meet other Fannie and Freddie credit or financial criteria.
Conventional (conforming)
Loan amount must be $766,550 or less in most counties and may be as high as $1,149,825 in high-cost counties.
Who qualifies for Fannie Mae loans?
Fannie Mae Loan Requirements
With loans from either Fannie Mae or its competitor Freddie Mac, you'll need a qualifying FICO® Score of at least 620. If you're an individual borrower, your qualifying score is the median between the three major credit bureaus – Experian™, Equifax® and TransUnion®.
It's affordable – now and in the future. MH Advantage requires as little as 3% down payment and offers lower mortgage insurance compared to standard MH loans. Because it's a conventional loan, mortgage insurance may be cancelled once borrowers reach 20% equity in the home – resulting in more savings long-term.
Because Fannie Mae has a minimum qualifying credit score of 620, this should help more clients qualify together on the loan, allowing for the use of all incomes to determine what they can afford. This also helps clients who are still working on their credit but may be applying with a co-signer.
Non-conforming mortgages don't meet Fannie Mae and Freddie Mac's rules. Examples of non-conforming loans are jumbo and government-backed loans, including FHA, VA, and USDA. These loans are still good, reliable mortgage programs that have helped millions of people become homeowners.
The highest loan amount for mortgages that Fannie Mae or Freddie Mac can acquire. Mortgages above this limit are known as jumbo loans.
A conforming loan is one that meets specific criteria set by the FHFA, including conforming loan limits. A conventional loan is any loan that isn't guaranteed or insured by the government (FHA, VA and USDA loans). Conventional loans can be either conforming or non-conforming.
Buying a home this year, particularly in early 2024, might mean you're able to beat the rush, as the market could get more crowded if or when rates drop further. Waiting, however, could give you more options to choose from as supply improves, along with the potential for increased mortgage affordability.
Some economists are revising their rate predictions, looking for them to be higher this year than previously thought. Fannie Mae was among them, this week saying it expected the 30-year fixed-rate mortgage to end 2024 at 6.4%, up from its 5.9% prediction earlier this year.
This reflects an upward revision in Fannie's analysis: Just last month, the mortgage giant expected rates would dip below 6% at the end of this year. All told, Fannie Mae predicts mortgage rates will average 6.6% in 2024 and 6.2% in 2025.
First, we'll give you a quick overview, then we'll drill down into each of these FHA loan requirements: Credit score: Minimum credit score of 580 (or 500 with a higher down payment) Down payment: 3.5 percent (or 10 percent with a credit score between 500 and 579)
What will mortgage rates be by end of 2024?
That means the mortgage rates will likely be in the 6% to 7% range for most of the year.” Mortgage Bankers Association (MBA). MBA's baseline forecast is for the 30-year fixed-rate mortgage to end 2024 at 6.1% and reach 5.5% at the end of 2025 as Treasury rates decline and the spread narrows.
Can You Get an FHA Loan More Than Once? You can get multiple FHA loans in your lifetime. But while you don't need to be a first-time homebuyer to qualify, generally speaking, you can only have one FHA loan at a time. This prevents potential borrowers from using the loan program to buy investment properties.
It's possible that rates will one day go back down to 3%, though if current trends hold that's not likely to happen anytime soon.
The average 30-year fixed mortgage rate as of Thursday was 6.99%. By the final quarter of 2025, Fannie Mae expects that to slide to 6.0%.
When will interest rates fall? Most analysts think that interest rates have peaked, and will soon start to fall – with current market expectations placing the first cut this summer. The Bank will lower the base interest rate to 3% by the end of 2025, according to analysis by research firm Capital Economics.
