Conforming Loan Limits Are Going Up for 2023...Again
The Federal Housing Finance Agency (FHFA) has announced it will be increasing the Conforming Loan Limits for 2023 from $647,200 in 2022 to the new threshold of $726,200 for 2023 which represents just over a 12% increase. Further the limit for "High-Cost Areas" will rise by the same percentage and go from their current level of $970,800 to $1,089,300 (lists available at FHFA.gov). In short, a conforming loan is one that meets the standards required that allow that mortgage to be bundled and sold to the GSE's known as Fannie Mae and Freddie Mac, who can then bundle these into mortgage-backed securities and potentially sell them to investors. When loans exceed these limits, a buyer can either put more money down to stay within said limits, or they can pursue a "jumbo loan" instead. These loans are typically harder to obtain requiring a larger down-payments and higher credit scores than their conforming counterparts. If you're planning to purchase in 2023 and you have a budget that allows you to explore the tops of these ranges, be sure to investigate further so you know if you can still qualify for a conforming loan or not to make sure you're pursuing the most optimum product available to fit your needs. This is certainly information your Lender (and in most cases even your Realtor) will either know or find out very quickly on your behalf so that you can be sure to shop for a home that is appropriate for both your needs as well as your budget. Happy House Hunting! #realestate #buyingrealestate #sellingrealestate #conformingloanlimits #fhfa #mortgagetypes #jumboloans #propertyguerilla #realtor #agent #fanniemae #freddiemac #fnma #fmcc