What is the conventional conforming loan limit for a single-family unit?

The conventional conforming loan limit for a single-family unit is determined by the Federal Housing Finance Agency (FHFA) and is subject to change each year based on housing market conditions and inflation. The limit defines the maximum loan amount that can be purchased by Fannie Mae and Freddie Mac, which are government-sponsored enterprises that facilitate mortgage financing.

As of 2023, the conforming loan limit for a single-family home is indeed $424,100. This limit allows borrowers to access conventional financing with lower interest rates and reduced costs associated with mortgage insurance compared to non-conforming loans. Understanding this limit is crucial for loan officers and potential homebuyers, as it helps determine the types of financing options that may be available based on the price of the property in question.

The other amounts listed are either outdated or not aligned with the current guidelines set by the FHFA. This knowledge is essential for navigating the mortgage landscape effectively.