The FHFA has announced the new conforming loan limits for 2023.
Because home prices rose at a record pace in 2021 and 2022, that put pressure on buyers to obtain bigger and bigger mortgages to keep up with those increases.
Fortunately, the FHFA realized that loan limits need to follow suit considering home price inflation.
Starting January 1, 2023, new conforming loan limits will rise to $726,200 in most of the U.S. — up from $647,200 in 2022. The limit for high-cost areas is also rising, from $970,800 to over $1 million ($1,089,300).
The Federal Housing Finance Agency (FHFA) determined that home prices are up by more than 12% on average across the nation. It raised conforming loan limits by the same percentage — a dollar increase of almost $80,000 for the standard one-unit home. Multi-unit properties received a similar increase.
High-balance conforming loan limits vary by county. Depending on location, conforming loan limits can go as high as:
1-unit homes: $1,089,300
2-unit homes: $1,394,775
3-unit homes: $1,685,850
4-unit homes: $2,095,200
Areas such as Los Angeles County and Orange County enjoy the maximum conforming loan limits, as they are considered “High-Cost Areas” per the FHFA. Counties like San Diego and Santa Barbara in California fall between the “floor” and the “ceiling.”
Maricopa County in Arizona, and San Bernardino and Riverside Counties in California fall within the base loan amount of $726,200.
Here’s the history of conforming loan limits since 1980, courtesy of Fannie Mae and The Mortgage Reports:
And you don’t have to wait until 2023 to take advantage – these limits are available starting today!
Would you like to find out more? Contact me to discuss your current situation and how you might be able to take advantage of these new loan limits. It would be my pleasure to help you!
