You may have seen our recent announcement that conforming and FHA loan limits are increasing for 2023. This is great news because it means that two of the most popular types of mortgages are now (or will soon be) available for bigger loan amounts. Higher limits allow homebuyers and homeowners to use these loans for larger home purchases and refinances, and home sellers can also benefit if these higher limits help buyers purchase their homes. Read on for more about this news.
Conforming Loan Limits
Conforming loans are popular because they generally offer more flexible requirements than non-conforming (aka jumbo) loans, such as down payment minimums as low as 3%, lower credit score minimums and higher debt-to-income ratio limits.
Here’s how conforming limits are increasing:
| General Loan Limits (most of the U.S.) | ||
| Property Size | 2023 Limits | 2022 Limits |
| 1-unit | $726,200 | $647,200 |
| 2-unit | $929,850 | $828,700 |
| 3-unit | $1,123,900 | $1,001,650 |
| 4-unit | $1,396,800 | $1,244,850 |
| High-Cost Area Ceiling Limits | ||
| Property Size | 2023 Limits | 2022 Limits |
| 1-unit | $1,089,300 | $970,800 |
| 2-unit | $1,394,775 | $1,243,050 |
| 3-unit | $1,685,850 | $1,502,475 |
| 4-unit | $2,095,200 | $1,867,275 |
As you can see, most of the U.S. is subject to the general loan limits for conforming loans. However, certain designated “high-cost areas” have higher limits that can reach up to the “ceiling limits.” The map below shows the 2023 limits for 1-unit homes by county across the U.S.
A list and interactive map of the 2023 conforming limits for all counties and county-equivalent areas in the U.S. can be found here.
Draper and Kramer Mortgage Corp. is offering these new conforming limits effective immediately for loans that close on or after December 7, 2022.
FHA Loan Limits
FHA (Federal Housing Administration) loans offer down payment minimums as low as 3.5%, and while their loan limits may not be as high as conforming loans, they offer even lower credit score minimums.
Here’s how the FHA limits are increasing:
| General Loan Limits (most of the U.S.) | ||
| Property Size | 2023 Limits | 2022 Limits |
| 1-unit | $472,030 | $420,680 |
| 2-unit | $604,400 | $538,650 |
| 3-unit | $730,525 | $651,050 |
| 4-unit | $907,900 | $809,150 |
| High-Cost Area Ceiling Limits | ||
| Property Size | 2023 Limits | 2022 Limits |
| 1-unit | $1,089,300 | $970,800 |
| 2-unit | $1,394,775 | $1,243,050 |
| 3-unit | $1,685,850 | $1,502,475 |
| 4-unit | $2,095,200 | $1,867,275 |
As you can see, similar to conforming loans, most of the U.S. is subject to the general FHA loan limits, while high-cost areas have higher limits that can reach as high as the “ceiling limits.” However, the general limit areas and high-cost areas are not always the same for conforming and FHA loans. You can look up the 2023 FHA loan limits for all counties and county-equivalent areas in the U.S. here (be sure to select “CY2023” for the “Limit Year”).
Draper and Kramer Mortgage Corp. is offering the new FHA loan limits for loans with FHA case numbers on or after January 1, 2023.
Conclusion
In summary, thanks to these new increased limits, you may now qualify to use a conforming or FHA loan with their flexible requirements for a larger home purchase or refinance than before. If you have any questions about these new limits or would like a free mortgage consultation, please reach out today!
Programs included on this document are subject to approval based on individual program guidelines and borrower’s credit and underwriting approval. Contact your Draper and Kramer Mortgage Corp. professional for full program details. Draper and Kramer Mortgage Corp. is a private corporation organized under the laws of the State of Delaware. It has no affiliation with the U.S. Department of Housing and Urban Development, the Federal Housing Administration or any other government agency.
