Conforming Loan Limits for 2024
A conforming loan is a mortgage that meets — or “conforms” — to a set of rules created by Fannie Mae and Freddie Mac, two companies that provide funds for most mortgages issued across the country. Conforming loans are the most popular type of mortgage because they’re often cheaper than other mortgage types, and borrowers can access bigger loan amounts than most government-backed loans allow.
What are conforming loan limits?
Conforming loan limits represent the maximum dollar amount you can borrow for a conforming residential mortgage. The Federal Housing Finance Agency (FHFA), which is the agency that oversees Fannie Mae and Freddie Mac, sets new conforming limits each year. The limits are based on the median home value in each U.S. county, so your loan limit depends on the county where you’re buying a house.
The 2024 conforming loan limit for one-unit properties in most of the U.S. is $766,550, but it can go up to just over a million — $1,149,825 — in high-cost areas.
A conforming loan is a mortgage that meets two criteria:
- The borrower’s credit profile and the property must qualify for approval and funding under the guidelines set by Fannie Mae and Freddie Mac.
- The loan amount must be within the conforming loan limits set by the FHFA each year.
Most mortgages in the U.S. are conforming, meaning that they meet the criteria above and therefore qualify to be purchased and guaranteed by Fannie Mae and Freddie Mac. As a result, most lenders are careful to follow conforming loan rules when evaluating your loan application and underwriting your loan.
All conforming loans are conventional loans since they’re issued by banks or private lenders and aren’t part of government-backed loan programs from the Federal Housing Administration (FHA), U.S. Department of Veterans Affairs (VA) or U.S. Department of Agriculture (USDA). Not all conventional loans, however, are conforming loans.
Nonconforming loans are mortgages that don’t conform to the loan guidelines set by Fannie Mae and Freddie Mac and the FHFA. Instead, they follow guidelines set by investors or the government agency that runs them. Some examples of common nonconforming loans include:
- Jumbo loans
The word “jumbo” describes any loan for an amount above the maximum conforming loan limits. Jumbo loans are often a good choice for financing luxury houses or homes in high-cost-of-living areas. - Non-QM loans
Borrowers with unique needs often use non-qualifying mortgages because they can provide financing for borrowers who can’t meet conforming, conventional or government-backed loan standards. For instance, a borrower with unusual income, with low or no credit or who wants to purchase a special or alternative property type. However, these loans can come with risky features like interest-only payments that may keep your payment low but don’t reduce your balance. - Government-backed loans
Loans backed by the FHA, VA and USDA are technically nonconforming loans; their income, credit, down payment and property standards are set by the government agencies that run them. These guidelines are often more flexible than conforming conventional loans and are popular with credit-challenged first-time homebuyers.
Who are Fannie Mae and Freddie Mac?
Fannie Mae and Freddie Mac are government-sponsored enterprises that help the mortgage industry run smoothly. By buying, packaging and reselling mortgages as securities, Fannie and Freddie help spread out the risk involved in mortgage lending, which in turn helps loans have lower interest rates.
Nationwide conforming loan limits for 2024
| Number of units | Most of the continental U.S. | High-cost areas in the continental U.S. | Alaska, Guam, Hawaii and the U.S. Virgin Islands |
|---|---|---|---|
| 1 | $766,550 | $1,149,825 | $1,149,825 |
| 2 | $981,500 | $1,472,250 | $1,472,250 |
| 3 | $1,186,350 | $1,779,525 | $1,779,525 |
| 4 | $1,474,400 | $2,211,600 | $2,211,600 |
Look up your county’s limit on the FHFA’s website or by using our map below.
Find your county’s 2024 conforming loan limits
Conforming loan limits vs. FHA loan limits
FHA loan limits are lower than what you could get with a conforming loan — just 65% of the current conforming loan limit, to be exact. For a single-family home in most parts of the U.S., the maximum FHA loan amount is $498,257 — that’s about $268,000 less than the conforming loan limit.
Conforming loan benefits
Lower mortgage insurance costs
Conforming loans come with a slightly different kind of insurance than government-backed loans. With a conforming loan, you’ll have to pay private mortgage insurance (PMI) if you can’t come up with at least a 20% down payment. However, once you reach 20% equity in your home, you can get rid of PMI on a conforming loan.
Government-backed loans, like FHA or USDA loans, require both upfront and annual insurance premiums, regardless of your down payment. In most cases, you can’t remove FHA mortgage insurance — you’ll have to refinance to get rid of it.
Lower APRs
Although interest rates for conforming loans tend to be higher than those offered on government-backed loans, the lower mortgage insurance costs often make the annual percentage rate (APR) — which reflects the total cost of your mortgage over the life of the loan — lower on a conventional conforming loan.
More occupancy options
Unlike government-backed loans, conforming loans aren’t restricted to primary residences; they’re also available for investment properties, vacation homes and second homes.
Higher loan limits
A conventional loan allows you to get a larger mortgage compared to FHA loans.
Potential appraisal waivers
You may be able to skip the cost and time involved in getting a home appraisal if you qualify for an appraisal waiver, even if you’re buying a home. That perk isn’t available with government purchase mortgage programs.
Conforming loan drawbacks
Higher credit score requirements
Conforming loans require a minimum 620 credit score. That’s 120 points higher than the 500 minimum credit score required for an FHA loan. In addition, to qualify for the best mortgage rates with a conforming loan, you’ll need to have a 780 credit score or higher. That’s a tough bar to reach for many borrowers; the average credit score in the U.S. is only around 714.
Higher interest rates
Loan rates are usually higher for conforming loans than government-backed mortgages. As of this writing, 30-year fixed mortgage rates are about 0.49 percentage points higher than VA loan rates and 0.21 percentage points higher than FHA loan rates. However, the lower mortgage insurance costs associated with conforming loans often make your APR lower, saving you money in the long run compared to an FHA, VA or USDA loan.
How to qualify for a conforming loan
To qualify for a conforming loan, you’ll need to meet conventional loan requirements:
| Minimum down payment | 3% |
| Minimum credit score | 620 |
| Mortgage insurance | Required until you reach 20% equity |
| Maximum debt-to-income (DTI) ratio | 45%* |
| Maximum loan-to-value (LTV) ratio | 97% |
| Loan limit (single-family home) | $766,550 |
*Higher DTI ratio exceptions may be made for borrowers with cash reserves, residual income or high credit scores.