Source: Fox Business —
The Federal Housing Finance Agency (FHFA) announced new conforming loan limits for 2023, meaning homebuyers will now be able to get larger mortgages backed by Fannie Mae and Freddie Mac.
After the FHFA’s third quarter House Price Index showed home prices increased an average 12.21% year-over-year, the agency raised baseline conforming loan limits on single-family homes by that same amount. The new mortgage limit for conventional loans backed by Fannie and Freddie will be $726,200 in 2023, up from $647,200 in 2022.
But the mortgage amount goes up for higher-cost areas. In places where 115% of the local median home value is larger than $726,200, home buyers will be permitted to use the high-cost area loan limit, which is 150% of typical loan limits. That pushed the new limit for high cost areas over $1 million to $1,089,300.
Special provisions for Alaska, Hawaii, Guam and the U.S. Virgin Islands make their loan limits equal to high-cost areas at more than $1 million.
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