We have some wonderful news for our home buyers!  The Conventional loan limit for 2023 has been announced. The Conventional loan limit for 2022 was $647,200. The new Conventional loan limit has been increased to $726,200. That is a $79,000 increase!

Now what does this mean to you? Let’s say you wanted to purchase a home for $750,000. Before, you would have to put over $100,000 dollars down to keep your loan amount under the $647,200 Conventional loan limit. If you borrow more than $647,200 you would have to take a jumbo loan. This means higher interest rates, higher fees, and more headaches. However, now you would be able to put a down payment of 35,000 dollars instead and avoid getting a Jumbo loan product. That’s Great!

Here is more great news! Typically, these loan limit changes do not take effect until January 1st of the next year. However, being mortgage brokers at Chissell Mortgage Group, we have some lenders who are already honoring this loan limit change, effectively immediately!

Now not every lender will be able to use the new conforming loan limit. The Federal Housing Finance Agency (FHFA) announces the new loan limits in November every year. Now, only certain lenders will be accepting these loan limit changes effective immediately.

Tell us a little more about your situation and we can tell you specifically, what YOU can do to know your loan limits and qualify for a mortgage.