The Federal Housing Finance Agency (FHFA) recently increased its conforming loan limits to $1,089,300 in some high-cost markets, allowing 2 million households across the country to access additional available inventory that won’t require a jumbo loan, Zillow reports. Jumbo loans typically require a minimum credit score of 700 as well as higher down payments and proof of larger cash reserves than conventional loans.
The FHFA’s new limits will grant prospective buyers a more affordable pathway to homeownership in high-cost markets, but the new $1 million benchmark is only reserved for the nation’s most expensive metro areas.
For the majority of the country, the conforming loan requirement increased by $79,000 — going from $647,200 in 2022 to a baseline of $726,200 in 2023. In the most expensive parts of the county (103 counties), the conforming loan limit was raised to $1,089,300, topping the $1 million mark for the first time. These counties are largely concentrated in the nation’s most expensive metro areas, along the coasts and in the Mountain West.
Advertisement
Related Stories
Insurance
As Insurance Companies Pull Out of Climate-Threatened Areas, Homeowners Reconsider Where They Live
The risk for homeowners is particularly pressing for those living in California, Florida, and Louisiana
Financing
10 States Where Shopping Around for a Mortgage Really Pays Off
In California, homebuyers could see savings of more than $130,000 over the lifetime of their loans
Financing
Residential Construction AD&C Lending Decreases During Q1 2024
The drop in construction financing is contributing to the decline in home builder sentiment