Loan Limits | Fannie Mae (2024)

FAQs

What is Fannie Mae's loan limit? ›

Lenders will consider several factors including credit score, debt-to-income ratio, the purpose of the loan, the type of loan, and more. In general, the lower your debt-to-income ratio and the higher your credit score, the higher you can expect the maximum loan amount to be.

Fannie Mae and Freddie Mac are restricted by law to purchasing single-family mortgages with origination balances below a specific amount, known as the “conforming loan limit” (CLL) value. Loans above this amount are known as jumbo loans.

For 2024, the FHFA (Federal Housing Finance Administration) set the baseline conforming loan limit (CCL) for 1 unit properties at $766,550 (up 5.5% from 2023) for Conventional financing (Fannie Mae & Freddie Mac) and up to $1,149,825 in California high cost counties.

Lowered down payment requirements for multifamily homes

As you may already know, last November, Fannie Mae made a notable policy change. Effective from the weekend after November 18, 2023, it began accepting 5% down payments for owner-occupied 2-, 3-, and 4-unit homes.

What's a limit? The limit is the total loan amount you've borrowed, and it will reduce over the remaining contract period. If you make extra repayments, it will be reflected on your balance.

With a $70,000 annual salary and using a 50% DTI, your home buying budget could potentially afford a house priced between $180,000 to $280,000, depending on your financial situation, credit score, and current market conditions. This range is higher than what you might qualify for with more traditional DTI limits.

While your income is a solid starting point, lenders also scrutinize your debt-to-income ratio, credit score, and other financial obligations. With a $100k salary in today's market, you could qualify for a mortgage between $250,000 and $350,000.

With a $45,000 annual salary, you could potentially afford a house priced between $135,000 to $180,000, depending on your financial situation, credit score, and current market conditions. However, this range can vary significantly based on several factors we'll discuss.

Fannie Mae caps the number of mortgages it will back for a single individual at 10 ¹ . This makes lenders less likely to offer a mortgage beyond this point, effectively setting the maximum number of mortgages at 10 per individual.

What is the maximum DTI for Fannie Mae? ›

Maximum DTI Ratios

The maximum can be exceeded up to 45% if the borrower meets the credit score and reserve requirements reflected in the Eligibility Matrix. For loan casefiles underwritten through DU, the maximum allowable DTI ratio is 50%.

Conforming loans do not exceed Fannie Mae's and Freddie Mac's dollar caps. The limit for 2024 is $766,550, and this figure is set every year in November by the FHFA.

All government mortgage loans are subject to a minimum representative credit score of 620. Manually underwritten government mortgage loans with nontraditional credit are exempt from this policy.

Maximum loan term is less than or equal to 30 years. Any loan that meets the product feature requirements with a debt-to-income ratio of 43% or less is a QM.

Fannie Mae does not specify a maximum acreage for properties it finances; however, the amount of land considered in the valuation of the property does have guidelines.

Maximum DTI Ratios

The maximum can be exceeded up to 45% if the borrower meets the credit score and reserve requirements reflected in the Eligibility Matrix. For loan casefiles underwritten through DU, the maximum allowable DTI ratio is 50%.

Conventional loans are the mortgages purchased by the government-sponsored enterprises of Fannie Mae and Freddie Mac. What are the benefits of a Fannie Mae loan? Fannie and Freddie loans have competitive interest rates and low down payment options.