2023 Increase to FHA Loan Limits
Starting January 1st, 2023, the Federal Housing Administration will implement an increase in loan limits throughout most of the United States.
What is an FHA Loan?
Administered by the Federal Housing Administration (FHA), this mortgage is a popular option for first-time homebuyers. It is specifically designed to assist borrowers to purchase a home with less stress by providing lower down payment options, lower credit score requirements, and flexible underwriting guidelines.
What are loan limits?
A loan limit is the total amount of money that an applicant is approved to borrow. Loan limits are dependent on the type of property that is being bought and where it is located.
The FHA has a standard limit for single-family homes. There are sequential increases in limits depending on 2-, 3-, and 4-unit buildings. Extended loan limits will also change in high income areas.
How are loan limits determined?
Loan limits are determined by the conforming loan limits from the Federal Housing Finance Agency. FHA limits are set at 65% of the new conforming loan limits.
What do I need to know about the new changes to the FHA Loan?
Below is a list of the new FHA loan limits effective January 1, 2023:
Limits will vary by county, based on the median home price for the area.
How will these changes help me secure my dream home?
You will have a better opportunity to afford a home, in an increasingly changing market. Our experienced loan officers at Lennar Mortgage will help you navigate these changes and make the most of your buying power. Buying a home is stressful, but at Lennar Mortgage our goal is to provide the simplest path to homeownership.
Ready to take advantage of increased FHA loan limits? Contact a loan officer today: https://www.lennarmortgage.com/contact-us