Conforming Loan Limits Increase for 2023

The conforming loan limits for 2023 have been released by the Federal Housing Finance Agency (FHFA) to increase one unit property limits to $726,200, up from $647,200 in 2022.  For areas that have been identified as high-cost areas, the limits have increased further. 

Here are some things you should know about conforming loans before you start the homebuying process.

What Are Conforming Loans?

Conforming loans are mortgages that fall within the guidelines set forth by Fannie Mae and Freddie Mac for loans that they are able to invest in. 

Fannie Mae and Freddie Mac are restricted by law to purchasing single-family mortgages with origination balances below a specific amount, known as the “conforming loan limit” (CLL) value. Loans above this amount are known as jumbo loans.

Conforming loan limits are based on the House Price Index (HPI) report that tracks annual home values of the previous year. 

Counties in Massachusetts and New Hampshire that have been identified as high-cost areas with higher limits are: 

Counties with $828,000 Loan Limit for One Unit Property

Middlesex County
Suffolk County
Norfolk County
Plymouth County
Essex County
Rockingham County, NH
Strafford County, NH

Counties with $1,089,300 Loan Limit for One Unit Property

Dukes County
Nantucket County

Top Benefits of a Conforming Loan

In addition to helping eligible buyers achieve their homeownership dreams, conforming loans have several other great benefits for buyers who qualify. 

• Lower interest rates than non-conforming loans
• Can be used for investment or vacation properties
• Shop around for a lender to best suit your needs
• Standardized guidelines meant to protect the borrower from poor lending practices

Next Steps

Discuss with your chosen lender how these new limits could benefit your home search.
For more information, see the Conforming Loan Limit values webpage at https://www.fhfa.gov/CLL