Update: On November 29, 2018, we added the updated conforming loan limits for 2023 to this page. Federal housing officials have increased the limits for most U. S. counties in response to rising home prices. Refer to the spreadsheet below for the new figures.
On this website, you can find county-specific 2023 conforming loan limits and FHA limits. The base loan ceiling for the majority of counties in the U.S. is set to increase to S. will be $726,200. That represents an increase of $79,000 from the $647,200 cap in 2022.
Conforming loan ceilings in more expensive real estate markets, like New York City and San Francisco, are as high as $1,089,300. These “high-cost” remote housing markets include Alaska, Hawaii, and Guam.
Anything above these limits would be referred to as a “jumbo” mortgage and most likely come with stricter eligibility requirements.
The Excel spreadsheet file above was obtained from FHFA. gov, and is offered here for our visitors’ convenience. You can save this document to your computer and access it whenever you need to.
Conforming Loan Limits Increased for 2023
The Federal Housing Finance Agency (FHFA) announced on November 29, 2022, that it would increase the baseline conforming loan limit for 2023 for almost all counties nationwide.
Additionally, they raised the ceilings for some “higher-cost areas” that are above the standard.
These adjustments were made in response to the significant increases in home prices that have occurred in the recent year. Despite ongoing economic uncertainties, home values in most U. S. Cities increased steadily for the majority of 2022, in some places reaching record heights.
The maximum conforming loan limit for a single-family home in most counties across the nation in 2023 will be $726,200 (an increase of $79,000 from the baseline limit in 2022). It reflects the unusually high home price increases of the previous year, making it one of the largest year-to-year increases we’ve seen.
In order to keep up with rising home values, federal housing officials have raised the baseline for the seventh consecutive year.
But once more, this is just the standard conforming loan limit that applies to the majority of the country. The maximum single-family home loan amount in more expensive real estate markets like San Francisco and New York City can reach $1,089,300. Additionally, a wide range exists between those “floor” and “ceiling” amounts.
Anything above these caps is considered a jumbo mortgage.
What Is a Conforming Loan in 2023?
A conforming mortgage is one that complies with the requirements outlined by Freddie Mac and Fannie Mae.
The two government-sponsored enterprises (GSEs) Freddie and Fannie are in charge of buying mortgages, bundling and securitizing them, and selling them to investors on Wall Street and through other channels.
A loan is referred to as conforming when it satisfies the GSEs’ purchasing requirements.
A “conforming” mortgage product is defined according to a number of factors. However, from the perspective of the borrower, one of the most crucial factors is the loan’s size.
Only loans up to a certain amount will be purchased by Freddie Mac and Fannie Mae. These upper limits, or ceilings, differ by county and are updated each year.
‘Jumbo’ Mortgages Are Still Widely Available
There are still options available to borrowers who want to get a mortgage loan that is bigger than the 2023 conforming limits for their county. A mortgage product is referred to as “jumbo” when it exceeds the limits established by the Federal Housing Finance Agency and cannot be sold to Fannie Mae or Freddie Mac.
Jumbo loans are still widely available in the U. S. however, due to the higher level of risk associated with these products, the qualification requirements are typically stricter.
Jumbo mortgage products are ineligible for purchase by Fannie Mae and Freddie Mac because they do not adhere to the FHFA’s underwriting standards. As a result, the eligibility criteria for these larger “non-conforming” loans are frequently stricter. For jumbo loans, lenders frequently demand greater income, better credit, and higher down payments. Just be aware that each lender will have different requirements.
Obtain the conforming loan limits for your county for 2023 by downloading the aforementioned PDF or Excel spreadsheet.
Loan limits frequently cause confusion among homebuyers, prospective mortgage customers, and occasionally even lenders. That’s the reason why we created this website. Here are clear answers to some of the most common queries about conforming loan limits in that vein.
What are conforming loan limits, exactly?
These restrictions represent the largest mortgage loans that Freddie Mac and Fannie Mae will accept in terms of size (dollar amount).
A lender must make sure that all of the criteria used by Fannie Mae and Freddie Mac are met if it wants to sell its mortgages to either of these companies through the “secondary mortgage market.” They must, in other words, “conform” to those requirements, hence the term.
How are they determined?
The Housing and Economic Recovery Act of 2008, or HERA, specifies the process for establishing these restrictions. This law mandates that the Federal Housing Finance Agency (FHFA) create and maintain an index for monitoring national average home prices across counties. In short, HERA ties loan limits to median home values.
The conforming loan limit for a particular county is typically set at 115% of the local median home value. However, it cannot exceed 50% of the starting point listed at the top of this page.
Is a “conforming” loan the same thing as “conventional”?
The terms conforming and conventional are sometimes used interchangeably. However, the meanings of these two adjectives differ, and they occasionally overlap. A “conventional” mortgage loan is one that is not supported, insured, or guaranteed by the government. This sets them apart from government-sponsored mortgage programs like FHA, VA, and USDA.
A conventional mortgage product that complies with the size restrictions and other standards used by Freddie Mac and Fannie Mae (the two large companies that purchase loans from lenders) is referred to as a “conforming loan.” Learn more about the distinction between conventional and conforming.
Do these caps change over time?
Yes, these restrictions are frequently altered (and typically raised) from year to year. In the previous FAQ, we outlined how conforming loan limits are determined, both locally and nationally, based on the median and average home prices.
Home values can change over time. Housing officials typically raise the conforming loan limits to “keep up” with home-price appreciation when they significantly increase from year to year.
But these modifications only take place once a year, on January 1st. After that, they remain the same throughout the calendar year.
Can I borrow more than the limit for my county?
Yes, but only if you’re able to support it financially. A “jumbo” loan is one in which the amount borrowed exceeds the conforming limit for the county where the home is located. Since there is a higher risk of default because there is more money being lent out, mortgage lenders frequently have stricter requirements for these borrowers.
In contrast to those who are applying for a smaller conforming mortgage, borrowers seeking jumbo loans typically need to have better credit and higher down payments.
View more conforming loan limit FAQs (PDF). Search
What will conforming loan limits be in 2022?
In most regions of the US, the 2022 borrowing cap for a single-unit home is $647,200. The maximum is $970,800 in areas of the country where housing is more expensive.
Are conforming loan limits going up 2022?
Nobody was surprised when the Federal Housing Finance Agency (FHFA) recently announced the 2022 conforming loan limits, which have significantly increased to $647,200 in most regions of the country. The biggest year-over-year jump in loan limits in recent memory is an increase of 18%.
How do you get around a conforming loan limit?
There are two ways to get around the conforming loan limits if you want to avoid taking out a jumbo loan to buy a house. You can increase your down payment or take out a second mortgage.
Will conforming loan limit increase in 2023?
The Federal Housing Finance Agency revealed on Tuesday that it will increase the conforming loan limits for Freddie Mac and Fannie Mae to more than $726,200. In most of the U. S. the maximum conforming loan limit for 2023 will increase from 510,400 to $726,200.