The federal housing finance agency recently released its 2023 conforming loan limit. The new loan limit for 2023 is $715,000. Here is what this means if you’re purchasing or refinancing a home…
Each year the Federal Housing Finance Agency which oversees Fannie Mae and Freddie Mac releases its annual loan limit. The annual loan limit is particularly relative because that’s the maximum balance that Fannie Mae and Freddie Mac will purchase in the secondary market. For each year of the last 7 years, this loan limit has gone up on an annual basis.
This change to $715,000 is an increase from the 2022 limit of $647,000. The government authorized mortgagees to start originating 2023 loan limits this year in 2022. So, in other words, the loan limits for 2023 are effective right now for the remainder of 2022. This enables a borrower looking to buy a primary home or refinance of primary home, rental property, or second home to enjoy the benefit of the most competitive interest rates and loan terms.
This also affords a family an opportunity to buy a home with as little as 3% down up to 97% loan to value. The conforming loan limit is the base loan amount on a national level for loans broadly bought by Fannie Mae and Freddie Mac. Of course, high-cost counties go beyond that number. For example, in Sonoma County California they go all the way to $764,000 which varies based on high-cost county loan minutes. So, what this means is more opportunities for homeownership, more opportunities to refinance, and more opportunities for borrowers to be able to get conforming loans.
If you’re looking to purchase or refinance a home start today with a no-cost loan quote!