Following the announcement from the Federal Housing Finance Agency (FHFA), we are raising the maximum baseline conforming loan limit as well as the high-cost area loan limit.
FHFAs seasonally adjusted, house price index data indicate that house prices increased 12. 21%, on average, between the third quarter of 2021 and 2022. Therefore, the maximum baseline conforming loan limit values in 2023 will increase by the same percentage.
Hey there, homebuyers and mortgage enthusiasts! Big news is brewing in the world of home loans. Get ready to say hello to higher loan limits in 2023 meaning you can potentially borrow more moolah to snag your dream home. Buckle up, because we’re diving deep into the details of these exciting changes.
Fannie Mae and Freddie Mac: The Bigwigs of Loan Limits
First things first, let’s talk about the two main players in the mortgage game: Fannie Mae and Freddie Mac. These government-sponsored enterprises (GSEs) buy mortgages from lenders, which helps keep the mortgage market flowing smoothly. And guess what? They also set the conforming loan limits, which are the maximum loan amounts they’ll buy.
2023 Loan Limit Increases: A Big Boost for Homebuyers
Now, for the exciting part: loan limits are increasing significantly in 2023. Here’s a quick breakdown:
- Fannie Mae: The new loan limit for most of the country will be $726,200, an impressive 12.21% jump from 2022.
- Freddie Mac: The maximum loan amount for most areas will also rise to $726,200, mirroring Fannie Mae’s increase.
What This Means for You: More Borrowing Power
These higher loan limits mean you’ll have more borrowing power when buying a home in 2023 This is especially good news for folks in high-cost areas, where home prices tend to be higher With a bigger loan limit, you’ll have more options when it comes to finding your dream home.
High-Cost Areas: Even Higher Limits
Speaking of high-cost areas, Fannie Mae and Freddie Mac have also announced increased loan limits for designated high-cost areas. These areas typically have higher median home prices, so the loan limits are adjusted accordingly. For example, in certain high-cost areas, the loan limit can go as high as $1,089,300.
Get Ready to Take Advantage of These Higher Limits
If you’re planning to buy a home in 2023, be sure to factor in these higher loan limits when calculating your budget. With more borrowing power at your fingertips, you can explore a wider range of homes and potentially find your perfect match.
Remember, these are just the conforming loan limits. If you need to borrow more than the conforming loan limit, you can still get a jumbo loan. However, jumbo loans typically have higher interest rates and stricter requirements.
Stay Tuned for More Updates
As we get closer to 2023, we’ll keep you updated on any further developments regarding loan limits. In the meantime, start dreaming about your new home and get ready to take advantage of these exciting changes in the mortgage market!
Loan Limit Values for Mortgages on Properties in High-Cost Areas*
We will buy super conforming mortgages with original loan amounts up to the following limits for homes situated in specified high-cost areas*:
|
Number of Units |
Maximum baseline conforming loan limit values for properties located in designated high-cost areas NOT in Alaska, Hawaii, Guam and U.S. Virgin Islands |
Maximum baseline conforming loan limit values for properties located in designated high-cost areas in Alaska, Hawaii, Guam and U.S. Virgin Islands** |
||
|
2023 |
2022 |
2023 |
2022 |
|
|
1 |
$1,089,300 |
$970,800 |
Not Applicable |
Not Applicable |
|
2 |
$1,394,775 |
$1,243,050 |
Not Applicable |
Not Applicable |
|
3 |
$1,685,850 |
$1,502,475 |
Not Applicable |
Not Applicable |
|
4 |
$2,095,200 |
$1,867,275 |
Not Applicable |
Not Applicable |
*The FHFA’s actual loan limit values for some high-cost areas may be less than the maximum loan limits for those areas that have been identified.
**Note: As has been the case for the past few years, no counties or county equivalent areas in the Virgin Islands, Hawaii, Alaska, Guam, or Alaska have super conforming or high cost loan limits that are higher than the baseline conforming loan limit values in those areas.
It is imperative that you verify the loan limit values for the particular county in which the property is situated before originating super conforming mortgages. The 2023 loan limit values for high-cost areas are available on the FHFA website.
Loan Limit Values for Mortgages on Properties Not Located in High-Cost Areas
The following table displays the maximum baseline conforming limit values for mortgages secured by non-designated high-cost properties as of 2023.
|
Number of Units |
Maximum baseline conforming loan limit values for properties NOT in Alaska, Hawaii, Guam and U.S. Virgin Islands |
Maximum baseline conforming loan limit values for properties in Alaska, Hawaii, Guam and U.S. Virgin Islands |
||
|
2023 |
2022 |
2023 |
2022 |
|
|
1 |
$726,200 |
$647,200 |
$1,089,300 |
$970,800 |
|
2 |
$929,850 |
$828,700 |
$1,394,775 |
$1,243,050 |
|
3 |
$1,123,900 |
$1,001,650 |
$1,685,850 |
$1,502,475 |
|
4 |
$1,396,800 |
$1,244,850 |
$2,095,200 |
$1,867,275 |
FHA Announces 2024 Loan Limits
FAQ
What is the new agency loan limit for 2024?
What is the student loan limit for 2024?
What is the loan limit for Fannie Mae 2022?
What is the max loan amount for conventional?
Are Fannie Mae loan limits increasing in 2022?
Fannie Mae loan limits are increasing in 2022. The new loan limit for most of the country will be $647,200 — an 18.05% increase over the 2021 limit — and is effective for whole loans delivered to Fannie Mae and loans in MBS pools with issue dates on or after Jan. 1, 2022. Download Lender Letter Have questions?
What is the conforming loan limit for 2022?
To contend with this increase, the Federal Housing Finance Agency (FHFA) is raising its conforming loan limits. The FHFA announced today the updated baseline conforming loan limit for 2022 will be $647,200. The new limit for one-unit properties in most high-cost areas will be $970,800.
What are the FHA loan limits in 2022?
When sales prices increase, the Federal Housing Association will increase the next year’s loan maximums so that FHA mortgages or refinancing offered by Fannie Mae and Freddie Mac remain accessible and competitive. Image source: Getty Images. What are the 2022 loan limits? The vast majority of the country has a new conforming loan limit of $647,200.
What are the conforming loan limits (clls) for 2022?
Washington, D.C. – The Federal Housing Finance Agency (FHFA) today announced the conforming loan limits (CLLs) for mortgages to be acquired by Fannie Mae and Freddie Mac (the Enterprises) in 2022. In most of the U.S., the 2022 CLL for one-unit properties will be $647,200, an increase of $98,950 from $548,250 in 2021. National Baseline