This November, the Federal Housing Finance Agency (FHFA) will be announcing new conforming loan limits for 2023. Industry experts expect that the federal government will increase the maximum loan limit by at least 10%. Some top mortgage lenders are so confident that this prediction is correct, that they’ve preemptively lifted their loan limit ceiling, a benefit you can take advantage of now instead of waiting until the new year.
On September 6th multiple large national lenders announced they would raise the limit for regular one-unit conventional loans from $647,200 to $715,000. For agency-eligible properties in Alaska and Hawaii, the loan limit will increase from $970,800 to 1.73 million dollars.
Today, some of these bigger loan amounts would not qualify for Fannie or Freddie, and instead, might be considered a jumbo loan requiring a higher down payment and more documentation. So this is great news for anyone hoping to buy a property before the end of the year in a high-cost area like Los Angeles.
This is the earliest lenders have increased limits ahead of the FHFA announcement––last year, these decisions didn’t start trickling in until the very end of September and early October when rates were in the low 3% range.
Looking to start investing in real estate? These lenders have also raised the limits on multi-unit properties:
If you want to learn more or take advantage of these increased loan limits before the end of the year, email us or give us a call at 323-412-9060!