
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.
High cost areas
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, and may have a higher interest-rate. They are generally considered a different type of loan.
History of Conforming loan amounts
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. 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”.