The Federal Housing Finance Agency (FHFA) recently announced the conventional conforming mortgage loan limit for single-family homes for 2023 – which is set at $726.200. This is big news for the end of the year.
This is an increase of nearly $100,000 from last year’s loan limit as 2022’s limit was $647,200. This marks the seventh straight year that the FHFA has increased the conforming mortgage loan limits after not increasing them for an entire decade from 2006 to 2016.
With home prices on the rise, a higher loan limit will provide potential homebuyers with more financing options to meet their house buying needs. In 2023, homebuyers can purchase a home with a conventional loan amount up to $726,000, whereas mortgage loans of this amount would previously require a jumbo loan. While jumbo loans serve as an excellent option for those with a higher budget, they often require a larger down payment and include stringent credit requirements.