Decoding the 2023 Loan Limits - Conventional and FHA

Decoding the 2023 Loan Limits - Conventional and FHA

While it seems loan limits are still shooting through the clouds in recent years, we missed our annual posting behind the practical meaning of this change for most buyers, sellers, and agents for 2023 across the 133 of 134 counties we serve in Florida and Alabama.  The skinny is for 2023 FHFA said $764,200 in November 22nd and HUD chimed in with $472,030 on December 31st.  

FHA:  For those who meet FHA guidelines this means a max purchase price of $489,150 with just 3.5% down on a single unit property.  You can of course buy more house if you want to put more than 3.5% on FHA.

Conventional:  For those who meet Conventional lending requirements, the breakdown below is for single unit properties as mentioned above you can always put more down to reach a higher price point.

  • Primary Residence - A $764,420 purchase price with 5% down (yes 3% down is still a thing for first time buyers)
  • Second Homes - $806,880 purchase price with 10% down
  • Investment Property - $907,750 purchase price with 20% down

We believe this is more crucial than it has been in recent years due to so many who were priced-out of their local markets in 2020, 2021 and then in 2022 were not able to jump in before rates increased faster than they ever have since the Fed's 110 year history.  It is no mystery that home prices in many markets reached a peak inflection point in 2022 and/or may have already started to decrease, we are already seeing a slight dip in interest rates in the first few weeks of 2023 so we are feeling somewhat optimistic for those considering buying in the near future.  

In a post coming to you soon, we will attempt to unpack more about markets, rates and regional trends but check us out on social media and our vlog.  If you have questions, send us an email or if you are planning ahead with figuring out your own capability try our secure portal and we will reach out to you inside of one business day. 

*Disclaimer: This information is subject to and will definintely change.  We are licensed to lend money, not predict market home prices in any market.  Nothing mentioned herein constitutes an offer or guarantee for financing of any kind.  Any offer made outside of this blog is subject to credit approval.  Equal housing lender.  Licensed in Florida and Alabama NMLS #835698.