2023 Loan Limit Increases – Here’s What That Means for Borrowers
The Federal Housing Finance Agency (FHFA) and the U.S. Department of Housing and Urban Development (HUD) have announced that they will be raising the conforming loan limits for mortgages backed by Fannie Mae and Freddie Mac and the FHA loan limits for 2023. This is great news for borrowers, as it will allow them to take out larger loans with better interest rates.
The new loan limits, which are set to take effect on January 1, 2023, will vary depending on the area of the country. Conforming loan limit for 2023 is $726,200 nationwide and up to $1,089,300 in certain high-cost areas. FHA loan limit for 2023 is $472,030 nationwide and up to $1,089,300 in certain high-cost areas. With these higher limits comes additional flexibility for borrowers who may have a harder time coming up with larger down payments or meeting requirements of non-conforming jumbo loans.
It's important to note that not everyone will qualify for a larger loan due to the new limits. Borrowers still need to meet certain income requirements, credit score and down payment thresholds to be approved for a larger loan.
Ultimately, this change is good news for potential borrowers who may be able to take advantage of the higher conforming loan limits and get access to more attractive mortgage loans. It's always best to speak with a qualified loan officer before applying for a home loan so they can help guide you through the process.
Are you considering taking out a home loan? The 2023 loan limit increase announcement gives you an opportunity to potentially secure a better rate at an affordable price. If you're interested in learning more contact a Veritas Funding loan officer today!
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