2023 Conforming Loan Limits in Los Angeles County – Everything You Need To Know

Conforming loan limits establish the maximum loan amounts that conventional mortgages can have in order to be purchased or guaranteed by Fannie Mae and Freddie Mac. These limits vary by county and are updated annually by the Federal Housing Finance Agency (FHFA).

If you are looking to buy a home with a conventional loan in Los Angeles County in 2023, it’s important to understand the current conforming loan limits that apply.

In this comprehensive guide, we will walk through key details on 2023 conforming loan limits specifically for Los Angeles County, California

What Are The Conforming Loan Limits in Los Angeles County For 2023?

The baseline conforming loan limit for a one-unit single family home in Los Angeles County in 2023 is [$1,089,300.](<click)

For two-unit properties, the conforming limit increases to $1,394,775.

These limits apply to both conventional loans purchased by Fannie Mae and Freddie Mac

The 2023 conforming loan limits represent a 74% increase over the 2022 limits of $1,013,300 for a one-unit property and $1,296,825 for a two-unit home

Why Are Loan Limits Higher in Los Angeles County?

Los Angeles County is designated as a high-cost area by the FHFA. High-cost regions have higher loan limits based on local home values.

The FHFA uses median home prices from its annual survey to determine county loan limits. For 2023, the median home price in Los Angeles County came in at $993,200.

Because this median price exceeds the baseline conforming loan limit of $726,200, Los Angeles County qualifies for the maximum high-cost area loan limits.

This allows buyers in Los Angeles County to finance higher cost homes using conventional mortgages as opposed to jumbo loans.

How Do Loan Limits Work?

All counties across the U.S. have a baseline conforming loan limit set by the FHFA each year. For 2023, this baseline limit is $726,200 for a single-family home in the lower 48 states.

If a county has moderately higher home prices, the conforming limit can be increased up to 150% of the baseline to better align with local real estate costs.

For very high cost areas like Los Angeles County, the conforming loan limit is capped at the statutory maximum limit set by Congress. In 2023, that cap sits at $1,089,300 for a single-family home.

Two-unit properties receive a higher cap of 125% of the standard one-unit limit. Four-unit properties can go up to 195% of the baseline limit.

Conforming Loan Limit Benefits

Staying under the conforming loan limits comes with several key benefits compared to jumbo loans above the limits:

• Lower Mortgage Rates – Conforming loans often come with lower rates as they can be purchased and guaranteed by Fannie Mae and Freddie Mac. Government backing reduces lender risk allowing lower rates.

• Lower Down Payments – Conventional conforming loans only require 3-20% down in most cases. Jumbos frequently need 10-20% or even 25-30% down.

• More Flexible Credit – Conforming loans can allow credit scores as low as 620. Jumbos generally require higher scores of 700+.

• Lower Fees – Origination fees and upfront costs are usually lower with conforming loans versus jumbos.

• Easier to Sell – There is strong secondary market demand for conforming loans. Jumbos can be harder to sell if the borrower needs to move.

How High Are Conforming Limits in Other LA Metro Counties?

Conforming loan limits can vary across counties, even within the same metro area. Here are the 2023 conforming loan limits for other counties in the Los Angeles metro:

• Orange County: $1,089,300 (one-unit)
• Riverside County: $726,200 (one-unit)
• San Bernardino County: $726,200 (one-unit)
• Ventura County: $1,089,300 (one-unit)

Orange County and Ventura County are also designated as high-cost areas by the FHFA, so they receive the same elevated conforming loan limits as Los Angeles County.

Meanwhile, Riverside and San Bernardino counties fall under the baseline limit. Median home prices in those counties are lower relative to the LA metro area.

How Do Conforming Limits Compare to FHA Limits?

FHA loan limits are also county-specific and set by the FHFA based on area median home values.

Here is how the 2023 FHA loan limits in Los Angeles County compare:

• 1-Unit FHA Limit: $1,089,300
• 2-Unit FHA Limit: $1,394,775
• 3-Unit FHA Limit: $1,691,650
• 4-Unit FHA Limit: $2,072,950

FHA allows financing for properties up to 4 units. For 1 and 2 unit properties, FHA and conforming limits are equal in Los Angeles County due to its high home prices.

Finding a Lender That Offers Conforming Loans

If you want to finance a home purchase or refinance in LA County using a conforming loan, the next step is connecting with lenders.

Not all mortgage lenders write conforming home loans. Start by looking for lenders that actively sell loans to Fannie Mae and Freddie Mac.

Large banks and credit unions are a good option. Ask if they offer conforming mortgages and can beat rate quotes from competing lenders.

Connecting with a broker is another great choice as they have access to multiple lenders and can help you find the best conforming loan for your situation.

The Bottom Line

Hopefully this breakdown gives you a clear picture of the 2023 conforming loan limits specifically for Los Angeles County. Conforming mortgages offer homebuyers key advantages thanks to purchase backing from Fannie Mae and Freddie Mac.

As long as you stay under the limits of $1,089,300 for a single-family home or $1,394,775 for a two-unit property, you can enjoy the benefits of lower conventional rates and costs.

Compare options from multiple conforming lenders to make sure you get the best deal. Understanding loan limits is crucial when navigating home financing in pricey real estate markets like LA County.