To help arm homebuyers with more borrowing power than ever before, Finance of America Mortgage is temporarily increasing its conventional loan limit up to $715,000 on loans locked on or after Sept. 13.
The new loan limit applies to one-unit properties in most parts of the country and is nearly $68,000 higher than the 2022 conforming loan limit of $647,200 set by the Federal Housing Finance Agency (FHFA).
Here’s a look at the full list of 2023 conventional loan limits Finance of America Mortgage is offering to its customers beginning Sept. 13:
In Alaska and Hawaii, which are considered high-cost areas, Finance of America Mortgage is raising its conventional loan limit up to $1,073,000 for one-unit properties. That’s up from the FHFA’s 2022 conforming limit of $970,800 in high-cost areas – an increase of more than $102,000.
While these loan limit increases are temporary, this move tracks expectations within the mortgage industry that the FHFA will likely raise conforming loan limits in late November to similar loan amounts.
What this means for homebuyers
This move allows borrowers in high-cost counties to access conforming loan pricing – and competitive mortgage rates – at higher loan amounts that would normally require them to take out a jumbo mortgage.
It’s a pivotal time in the U.S. housing market as higher mortgage rates continue to dampen both mortgage affordability and demand. However, home-price appreciation is finally showing signs of cooling after hitting near-record highs recently.
Annual U.S. home-price growth slowed by 2.5 percentage points in July, overtaking June for the fastest deceleration in a single month in over 40 years, according to the July Mortgage Monitor Report from Black Knight. Home-price growth is now down 4.9 percentage points over those two months, however, housing affordability is still at its worst levels in 30 years, Black Knight reported.
Contact a local Finance of America Mortgage Advisor today to learn more about our new conforming loan limits.
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