As always, at this time of year, The Federal Housing Finance Agency (FHFA) announced the conforming and high balance loan limit increases. This is important because Fannie Mae and Freddie Mac are legally restricted to purchasing mortgages with origination balances below a specific amount known as conforming loan limit (CLL) value.

Increased Conforming Loan Limits: High-Cost Areas

Loans above this amount are known as Jumbo loans and usually carry higher rates. High-cost areas such as the DMV have an additional tier for Fannie/Freddie loans referred to as high balance loan limits.

• The conforming limit for a one-unit property jumped from $726,200 in 2023 to $766,550 in 2024.
• The high balance limit went from $1,089,300 in 2023 to $1,149,825 in 2024.
• Limits for 2, 3, and 4-unit properties are higher.
• Increased conforming loan limits translate into increased buying power for future homeowners. Loans that meet Fannie and Freddie guidelines generally have lower rates and easier qualifying guidelines than Jumbo loans. So, the more buyers who can use these loans, the better it is for the market, especially in high-cost areas like ours.

Increased Conforming Loan Limits: Increased Buying Power

Increased conforming loan limits translate into increased buying power for future homeowners. Loans that meet Fannie and Freddie guidelines generally have lower rates and easier qualifying guidelines than Jumbo loans. So, the more buyers who can use these loans, the better it is for the market, especially in high-cost areas like ours. For more information about buying a home, please contact us.

Preparing for the Holiday Season

I had a great weekend preparing for the upcoming Hanukkah/Christmas season. I took one set of grandkids to see the miniature holiday train and trolley exhibit at the Trolley Car Museum in Silver Spring. We also got to ride a trolley with Santa. Then, in the evening, I went with the other set of grandkids to see the beautiful boats in Carroll Creek in Frederick.

Enjoy your week!