MarketMinute | How Much Did The Fed Raise Policy Rates?
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The Federal Housing Agency (FHA) has just increased the amount of money that can be borrowed through its mortgage programs by more than $51k in most areas. In high cost locations, the increase is even greater. New limits will take effect in 2023.
The increases will allow more borrowers to take advantage of FHA’s benefits:
- Low down payment options
- Lower total cash-to-close requirements with gift or seller contributions
- More lenient and streamlined refinancing
- Ability to combine purchase and rehab financing
- In some high-cost areas, higher loan limits than conventional mortgages
Here are the specifics:
- In most areas, the FHA loan limit will be $472,030, a 12% increase over 2022’s limit of $420,680.
- In high-cost areas, the limit moves to $1,089,300, a 12% increase over 2022’s $970,800.
- In some lower-cost areas or those with higher costs of construction, limits will vary.
Contact your Greenway Mortgage loan officer today for more details about how the increase can impact you.
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Conforming Loan Limits Increase for 2023

On November 29, 2022, the Federal Housing Finance Agency (FHFA) announced an increase in the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac in 2023.
The maximum loan limit for one-unit properties will be $726,000, an increase from $79,000 from $647,200 in 2022. Release.
The decision was based on the recovery of housing prices under the Housing and Economic Recovery Act of 2008 (HERA). They require that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac to reflect the change in the average U.S. home price.
FHFA third quarter 2022 House Price Index (HPI) reported that house prices increased 21.21%, on average, between the third quarters of 2021 and 2022. The baseline maximum conforming loan limit in 2023 will increase by the same percentage.
For areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit, the maximum loan limit will be higher than the baseline loan limit.
A list of the 2023 maximum conforming loan limits for all counties and county-equivalent areas in the country can be found here.
Contact your Greenway Mortgage loan officer today for more details about how the increase can impact you.
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