The U.S. government and housing agencies have recently implemented two key policies to enhance housing affordability and accessibility. First, conforming loan limits for 2024 were increased to $920,750, up from $870,800 in 2023, allowing more homes to qualify for lower-cost mortgages. Second, the Federal Housing Administration (FHA) reduced its minimum down payment requirement from 3.5% to 3% for qualified buyers, effective January 2024. These changes aim to expand homeownership opportunities, particularly for first-time buyers and lower-income households.

The policy adjustments address rising home prices and persistent affordability challenges. The conforming loan limit increase, set by Fannie Mae and Freddie Mac, ensures more properties fall within the range of mortgages eligible for standardized underwriting and cheaper interest rates. Data from the Federal Housing Finance Agency (FHFA) shows that 50% of U.S. counties now have conforming loan limits above $1 million, up from 35% in 2023, enabling buyers to purchase higher-priced homes without jumbo loan risks. Meanwhile, the FHA’s reduced down payment requirement aligns with a 12% year-over-year increase in FHA-insured mortgages in 2023, as reported by HUD. A 2024 National Association of Realtors survey found that 68% of first-time buyers cited down payment assistance or lower requirements as critical factors in their purchasing decisions. These policies collectively aim to mitigate the 30% decline in overall home sales seen in 2023 and support economic stability through increased household formation.