By Kerry Smith
FHFA announced new conforming loan limits for 2023, and most buyers can borrow up to $726,200 without a jumbo loan – and it’s over $1 Million in some areas.
WASHINGTON – Fannie Mae and Freddie Mac – which back a majority of U.S. home loans – have a new lending cap in 2023.
The Federal Housing Finance Agency (FHFA) announced that the conforming loan limit values (CLLs) for mortgages to be acquired by Fannie Mae and Freddie Mac (the Enterprises) in 2023 will go up $79,000 to $726,200 in most areas of the U.S for one-unit properties. The cap in those areas this year is $647,200.
The cap varies by county, however. FHFA says two U.S. counties will have a lower cap, and additional areas will have a higher cap that, in 2023, will rise about $1 million for the first time – up to $1,089,300 for one-unit properties. FHFA says about 3.3% of counties – 100 out of more than 3,000 – are considered high-cost markets.
In Florida, the higher conforming cap largely applies only for some Monroe County residents.
The higher cap applies in areas where 115% of the local median-home value exceeds the baseline conforming loan limit. The Housing and Economic Recovery Act (HERA) of 2008 includes a calculation to create a higher cap in those areas. In addition, special statutory provisions create different loan limits for Alaska, Hawaii, Guam and the U.S. Virgin Islands. In these areas, the baseline loan limit will also be $1,089,300 for one-unit properties.
HERA is a yearly adjustment to conforming loan limits. According to the nominal, seasonally adjusted, expanded-data FHFA HPI, house prices increased 12.21%, on average, between the third quarters of 2021 and 2022. As a result, 2023’s baseline conforming loan limit will increase by the same percentage.
Other resources
- List of conforming loan limits for all counties and county-equivalent areas in the U.S.
- A map showing the conforming loan limits across the U.S.
- List of FAQs that covers broader topics that may be related to CLLs.
- Questions about the CLLs can be addressed to LoanLimitQuestions@fhfa.gov. For more information, visit https://www.fhfa.gov/CLL.
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