Conforming loan limits have gone up

DDA Mortgage • September 12, 2022

There is good news for homebuyers in the U.S. The Federal Housing Finance Agency (FHFA) has increased conforming loan limits for mortgages backed by Fannie Mae and Freddie Mac.


The new conforming loan limit for 2023 is $715,000, an increase of $67,800 from the 2022 limit of $647,200.



New Loan Limit Effect on Potential Buyers


The higher conforming loan limits are good news for potential buyers who were looking to buy a bigger home but didn't have 20% down or were turned off by the interest rates for jumbo loans.


Most lenders do not change their loan limits until January 1st of the next year. However, we have a lender who is already accepting the higher limit now!



What New Mortgage Loan Limits Mean For You


What does this mean for you? If you’re looking to buy a home and want a conventional mortgage loan (mortgage backed by Fannie Mae or Freddie Mac), then you have more buying power than last year! You do not go into Jumbo territory and can buy a home for $752,632 with 5% down.


The increase in mortgage loan limits means that you can qualify for mortgages with lower down payments and better interest rates. This is particularly good news if you are a first-time homebuyer who is looking to purchase a home under $750,000.



Why You Should Get Pre-approved Now


So, if you're buying a home between $600,000 and $750,000, I recommend getting pre-approved before starting your search so that you know exactly what type of loans you can qualify for and how much money you'll need upfront as well as your monthly payment once you find your dream home!



Next Steps


If you are shopping for a mortgage, call us now a (727) 784-5555. We will get you approved and close quickly without unexpected surprises.


If you have questions about mortgages and home loans, please ask using the form below.

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