The Federal Housing Finance Agency announced on Tuesday, November 29th the new loan limits for 2023. The new conforming loan limit has increased and has been year over year 7 years in a row. If you’re thinking about purchasing or refinancing a home in 2023 here is what you need to know…
The loan limit increase represents a growing trend of the rising cost of home ownership. This increase in the loan limit also opens the door for more families who otherwise couldn’t qualify for conventional loans due to the amount of mortgage loan they were looking to purchase. This change to the loan is both for purchase and refinance transactions for residential 1-4 unit homes.
The national conforming loan limit for 2023 is 726,200.
In some high-cost areas that limit is even greater on what’s called a high balance loan limit. The high balance loan limit is the maximum size loan in some high-cost counties that Fannie Mae and Freddie Mac will except for residential mortgage loan financing. For example, the loan limit for Sonoma County, California for 2023 is now $861,350.
This figure represents the maximum amount of mortgage loan for a single-family residence for a conventional mortgage loan. 2-4 unit homes contain even bigger loan limits. It is poised the Federal Housing Administration (FHA) will suit with their loan limits which VA always matches. The rising cost of homeownership on par with income growth is supporting these higher loan sizes for governed back securities.
If you are looking to purchase a home in 2023, begin with a free affordability assessment online today.