2023 Much Higher Conforming Loan Limits Announced

December 3rd, 2022

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2023 conforming loan limits have been announced! The Federal Housing Finance Agency (FHFA) sets the loan size limits each year on conventional mortgages that Freddie Mac or Fannie Mae will buy from mortgage lenders. In 2022 the conforming loan limit for a single-family home was $647,800. This year, the conforming loan limit for a single-family home has increased to $726,200, a little over a 12% increase!

This means Freddie Mac or Fannie Mae can purchase conventional loans equal to or less than the conforming loan limit from mortgage lenders. Loan limits go even higher for 2-4 unit homes. In most areas, the maximum conforming loan limits are as follows:

 

Single-family property         $726,200

2 unit (Duplex)                      $929,850

3 unit (Triplex)                      $1,123,900

4 unit (Four Plex)                  $1,396,800

 

Anything larger than 4 units is considered a commercial loan which doesn’t qualify for a residential conforming loan.

But if you live in a high cost area, the conforming loan limit may be even higher. These loans are called conforming “high balance” loans and can come at a slightly higher interest-rate. Those limits are:

 

Single-family property         $726,201 – $1,089,300

Duplex                                   $929,851 – $1,394,775

Triplex                                    $1,123,901 – $1,685,850

Four Plex                               $1,396,801 – $2,095,200

 

Any mortgage amount that is higher than the loan limits outlined above is considered a jumbo loan and subject to different requirements. Jumbo loans require higher credit scores, larger down payments, cash reserves requirements, may have a higher interest-rate, and generally is considered a different type of loan.

Check out how conforming loan limits for single family homes have changed throughout the years, dating all the way back to my first year in the business, 1986! Conforming loan limits are now about 5.5 times what they were in 1986! But notice how in the decade from 2006 to 2016 the loan limits didn’t increase one dollar. That was during a massive economic recession and real estate correction. Really interesting data.

Year Loan Limit
2023 $726,200
2022 $647,800
2021 $548,250
2020 $510,400
2019 $484,350
2018 $453,100
2017 $424,100
2016 $417,000
2015 $417,000
2014 $417,000
2013 $417,000
2012 $417,000
2011 $417,000
2010 $417,000
2009 $417,000
2008 $417,000
2007 $417,000
2006 $417,000
2005 $359,650
2004 $333,700
2003 $322,700
2002 $300,700
2001 $275,000
2000 $252,700
1999 $240,000
1998 $227,150
1997 $214,600
1996 $207,000
1995 $203,150
1994 $203,150
1993 $203,150
1992 $202,300
1991 $191,250
1990 $187,450
1989 $187,600
1988 $168,700
1987 $153,100
1986 $133,250

Mortgage guidelines can change at any time, so always talk to an experienced mortgage loan officer who will help you understand the current guidelines and how they might apply to you.

Brian Martucci is a loan officer for Capital Bank Home Loans, a division of Capital Bank, N.A. He has been in the mortgage industry since 1986 and has served in a number of roles, including loan processor, loan officer, mortgage broker, branch manager, and vice president. Brian Martucci – NMLS# 185421. His opinions do not necessarily reflect the opinions and beliefs of Capital Bank Home Loans or Capital Bank. Capital Bank, N.A.- NMLS# 401599. Click here for the Capital Bank, N.A. “Privacy Policy”.

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