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  • Writer's pictureJosh Taylor

Mortgage Loan Limits are going up in 2023 - Heres what that means for you

Despite climbing mortgage rates, average home prices are still up by double digits year over year. The Federal Housing Finance Agency (FHFA) and the Federal Housing Administration (FHA) will increase the conforming loan limits and FHA loan limits for 2023 in an effort to help prospective homebuyers who are caught between high home prices and elevated mortgage rates. Increasing these limits will help prospective buyers qualify for more favorable loan terms during this time of historically high home prices (see below). How will these changes impact your home-buying experience? If your budget for buying a home was close to the 2022 FHA or conforming loan restrictions, you might be able to obtain a larger loan without using a jumbo loan (which is usually more expensive and harder to be approved for). What’s a conforming loan? Why does it matter?

  • A conforming loan is a loan that adheres to the guidelines set by government-sponsored entities like Freddie Mac and Fannie Mae, and the FHFA.

  • Conforming loans tend to charge lower interest rates to lenders than non-conforming loans.

Bottom line

The limits for conforming loans and FHA loans will go up in 2023 to account for the rise in home prices. This gives homebuyers more flexibility in how they finance a home purchase. In a tumultuous year, this is some good news that buyers can take into the new year. If you’re ready to see how this affects you, let me connect you with my preferred lender today!


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