What are Loan Limits?
Loan limits are set by the Federal Housing Finance Agency (FHFA) and they determine the maximum amount of cash a homebuyer can borrow and obtain a conforming loan. Loan limits apply to both Fannie Mae and Freddie Mac which are two government sponsored loan programs. These limits are the maximum loan amount that Fannie Mae and Freddie Mac are willing to buy or guarantee. Loans above this amount are considered Jumbo Loans.
Loan limits keep the lending environment safe and current for lenders and borrowers alike.
2023 Loan Limits
Loan limits are reviewed annually. The are set based on the Housing Price Index report (HPI) and based on median housing costs. In 2022 the loan limit was set at $647,200. The 2023 loan limits have increased the maximum to a loan amount of $726,200.
For those living in high cost counties the loan limits are 1,089,300 for 2023. In New Hampshire, Vermont, Florida and Maine the only high cost counties are Rockingham County and Strafford County, both in New Hampshire and Monroe County in Florida.
If you were in need of a loan larger than $726,200 you would need to look into a jumbo loan product. Jumbo loans are a great option when you need a large loan but they are not a conforming loan product. Conventional loan programs typically boast lower interest rates.
If your loan amount is close to or over the limit your loan officer can advise if it would be wise to put down a larger down payment or to pursue a jumbo loan. Legacy Mortgage has access to both conforming loans and Jumbo loans across several lenders. This is where an independent mortgage broker can advise you the best and most advantageous loan product for your scenario.
The 2023 loan limits have officially launched. If you are shopping for a home now, Legacy Mortgage can help you capitalize on the 2023 loan limits.
If you are looking to buy a home in the current Upper Valley real estate market and beyond, you need a team of local real estate experts on your side. Our team is well versed in a variety of loan programs including fixed mortgages, ARMs, VA loans, FHA and more! We have the privilege of partnering with the best local agents, appraisers and attorneys the Upper Valley has to offer. When you work with Legacy Mortgage you are working with the best local professionals from beginning to end. Reach out to the Legacy Mortgage team to get started get the loan process started. Call us today, 603-643-7400.