If you are planning to buy or refinance a home next year, we have some great news for you.
Due to the significant home appreciation that happened in 2022, the Federal Housing Finance Agency has raised the conforming loan limit for 2023 for all counties across the country.
This means that homes you could previously only buy with a jumbo mortgage loan may now be eligible for a conventional loan – meaning lower interest rates and less restrictive qualification requirements.
In most counties, the 2023 maximum conforming loan limit for a single-family home will be $726,200 – an increase of $79,000 from $647,200 in 2022.
In higher-cost real estate markets (areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit above), the limit for a single-family conforming home loan can be as high as $1,089,300 – an increase of $118,500 from the 2022 limit of $970,800.
Here is a map showing the new conforming loan limits in all counties across the country.
What Does This Mean For You?
These new home limits do not mean that you can only get a mortgage for up to $726,200 or $1,089,300. These are just the limits that are backed by the government-sponsored entities Fannie Mae and Freddie Mac, otherwise known as conventional loans.
Loans that are above these limits are qualified as jumbo loans, which come with stricter qualification requirements, higher interest rates, and higher minimum down payments. If you have been trying to qualify for a home loan but have been having some trouble getting a jumbo loan, you may now be able to qualify for a conventional loan with better terms.
If you’re in the market to buy a home, now is the time to start the mortgage process so you are ready to purchase when these loan limits change next year. If you have any questions or would like to start the application process, fill out the form below to request a consultation with one of our mortgage advisors.