FHFA, FHA increase loan limits for 2024

The Federal Housing Finance Agency (FHFA) announced a $40,350 increase to its new conforming loan limits (CLL) for 2024. The Housing and Economic Recovery Act of 2008 (HERA) requires FHFA to publish the limits annually and determine the top value of mortgages that Fannie Mae and Freddie Mac (the Enterprises) can acquire. The 2024 CLL is $766,550 for one-unit properties. For higher-cost areas where 115% of the local median home value exceeds the baseline CLL value, the loan limit is set to $1,149,825 for one-unit properties. Last year marked the first time federal government-backed mortgages were over $1 million, which caused concern for some housing advocates who note that such high limits risk continuing to inflate home prices overall.

The new increase is less than the 2023 CLL increase, which FHFA set at $726,200, a $79,000 raise from 2022. Last week’s announcement noted that the 2024 CLL values are higher in all but five U.S. counties or county-equivalents due to rising home values.

FHFA released its latest Housing Price Index (HPI) alongside the new limits, which informs the CLL baseline. The HPI showed a 5.56% average increase in house prices between the third quarters of 2022 and 2023. Consequently, FHFA increased the baseline CLL by the same percentage.

Also, last week, Ginnie Mae announced a revised definition for high-balance loans to conform with the new limits. Ginnie Mae set its new definition at $766,550 for a single-unit loan and $1,149,825 for a single-unit loan in Alaska, Hawaii, Guam, and the U.S. Virgin Islands.

Lastly, the Federal Housing Administration (FHA) updated its loan limits for the 2024 calendar year, affecting both its Single-Family Title II forward and Home Equity Conversion Mortgage (HECM) insurance programs. Effective Jan. 1, forward mortgage loan limits will increase in 3,131 counties, while 96 counties will remain unchanged. The floor and ceiling limits for one-to-four-unit properties vary based on location and are calculated as national conforming loan limit percentages. Areas such as Alaska, Hawaii, Guam, and the U.S. Virgin Islands have adjusted ceilings to account for higher construction costs. You can see a complete list of limits here.



The HECM maximum claim amount, consistent across the nation, will rise from $1,089,300 in 2023 to $1,149,825 in 2024. These adjustments are based on the National Housing Act formula as amended by HERA and respond to the continued upward trend in home prices in 2023.

“The increases to FHA’s loan limits will enable homebuyers to use FHA’s low-down-payment financing to access homeownership at a time when a lack of affordability threatens to shut well qualified borrowers out of the market,” said FHA Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon. 

HUD awards $25 million to PHAs expanding housing choice

The U.S. Department of Housing and Urban Development (HUD) awarded $25 million to seven public housing agencies (PHAs) in Housing Mobility-Related Services. The funds, as outlined in the Notice of Funding Opportunity (NOFO), will allow the PHAs to administer housing mobility programs and expand housing opportunities for Housing Choice Voucher (HCV) families. 

HUD based the awards on its Community Choice Demonstration program, built upon research demonstrating the positive impact of low poverty levels on academic achievement and long-term success. Despite an existing opportunity for HCV families to choose their neighborhoods, barriers persist, such as financial constraints, limited time for unit search, and landlord reluctance to accommodate voucher holders. This program addresses these challenges by providing mobility-related services, fostering collaborative efforts among PHAs, and adopting policies to promote housing mobility. 

“Every parent knows the value of providing a safe and secure place for their child to call home. Stability at home helps promote their future success – in school and on,” said HUD Secretary Marcia Fudge.

“The impact of these funds is tangible – families can more easily move to neighborhoods of their choice and near more opportunity. Providing families additional support with their housing search can ultimately lead to better long-term outcomes in employment and education,” said HUD Principal Deputy Assistant Secretary for Public and Indian Housing Richard Monocchio.  

Enterprise partners with Church of God in Christ CEDC to develop 18,000 homes

Enterprise Community Partners announced a collaboration with the Church of God in Christ Community Economical Development Corporation (COGIC CEDC) to create an estimated 18,000 new affordable rental and homeownership opportunities. Through the collaboration, 200 churches will receive technical and financial assistance to convert vacant or underutilized land into housing and 72 community facilities. The partnership seeks to expand the supply of housing and community facilities that serve low- and moderate-income households, support equitable procurement opportunities, and strengthen neighborhood anchor institutions while serving as a model for houses of worship and denominations interested in housing. COGIC established its Faith-Based Development Initiative in 2022 to further the impact of affordable housing and community development on its communities. This is the first time Enterprise has collaborated with a denominational entity at the national level since launching its Faith-Based Development Initiative (FBDI) in 2006. Since 2006, Enterprise has provided over $154 million in loans and equity and leveraged over $2.2 million in grants to support faith-based development. 

“This is a historic moment in the life of Enterprise’s Faith-Based Development Initiative. We look forward to helping COGIC CEDC work with congregations to meet critical affordable housing and other community needs by harnessing the potential of the land they steward,” said Rev. David Bowers, Vice President of Enterprise’s Mid-Atlantic Market and Senior Advisor for the Faith-Based Development Initiative. 

“The COGIC has been active in the area of affordable housing in the State of Tennessee for numerous years. We are committed to expanding our intellectual capital to assure our churches throughout the United States have the economic capacity to lead affordable housing and community development initiatives in their respective cities,” said COGIC Presiding Bishop J. Drew Sheard.