Tag: loan limits

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!

The Federal Housing Finance Agency announced new baseline conforming loan limits for Fannie Mae and Freddie Mac in 2022: $647,200

This is an 18% increase from the 2021 limit of $548,250 and marks the sixth consecutive year of increases from the FHFA.

This is important because now buyers and borrowers can purchase a higher priced home and still stay within conforming loan guidelines. That means easier qualifications at higher price points.

In 2016, the FHFA increased the Fannie and Freddie conforming loan limits for the first time in 10 years. Since then, the baseline loan limit has gone up by over $230,000.

These new limits apply to conventional, conforming loans (those sold to or backed by Fannie Mae and Freddie Mac), for both refinances and purchases.  Any loan amounts above these limits would be considered “jumbo” loans and fall outside of conventional guidelines.

Do I have to wait until 2021 to take advantage of a higher conforming loan amount?

Actually, no.  The change actually applies to the date that Fannie and Freddie sign off on the new loan (either via “delivery” or “securitization”). 

Essentially, any loan originated today would most likely close in 2021 and fall under the new loan limits.

Please do contact me for more information!