2023 Increase to Conventional Loan Limits
The Federal Housing Finance Agency (FHFA) announced that the loan limits for Conventional Loans will increase for most of the United States in 2023.
What is a Conventional Loan?
A Conventional Loan is also known as a Conforming Loan because it conforms to the standards set by Fannie Mae and Freddie Mac—which are two agencies that help standardize the mortgage industry. There are many benefits to using a Conventional Loan including flexible qualifying guidelines for your down payment, loan term, and rate options.
What are loan limits and how are they determined?
It is required by the Housing and Economic Recovery Act (HERA) that the limits for Conventional Loans be adjusted on a yearly basis to reflect the average home price in the U.S. The limits are based on 2022 third-quarter results from the FHFA House Price Index (FHFA HPI) report.
What are the new limits for Conventional Loans?
The exact amount of money that you will be able to borrow will vary from area to area, but it is expected that most areas will be able to borrow up to $726,200 for one-unit properties and $1,396,800 for four-unit properties. High-cost areas will reach limits up to 1,089,300 for one-unit properties and $2,095,200 for four-unit properties.
Click here to view a map of conventional loan limits across the U.S.: https://www.fhfa.gov/DataTools/Tools/Pages/Conforming-Loan-Limit-Map.aspx
Will these changes help me in buying a home?
A higher loan limit in an increasingly changing market will allow you a better opportunity to secure your dream home. When buying a home, it is important to understand all your options so you can make the most of your buying power. Our experienced Loan Officers at Lennar Mortgage are equipped with the knowledge and tools necessary to effectively guide you to homeownership.
Ready to take advantage of increased conventional loan limits? Contact a Loan Officer today: https://www.lennarmortgage.com/find-a-loan-officer