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  • Writer's pictureCathy Hertler

Higher Loan Limits Expand Homebuyer Options

Loan limit for high-cost areas tops $1 million for first time.



Homebuyers applying for a Federal Housing Administration (FHA) loan in 2023 will benefit from higher loan limits, which effectively increases the number of homes available for FHA financing. The FHA has raised limits in all but 12 counties, and for certain high-cost living areas, the limit now exceeds $1 million.



Why Did Loan Limits Increase?


Housing costs are still rising, although at a slower rate than the last two years, so loan limits have been adjusted to reflect these higher prices. The National Housing Act requires the FHA to maintain loan limits at 115% of median home prices, which are calculated using Metropolitan Statistical Area (MSA) and county information.




New Loan Limits


Floor limits for one-unit properties have increased across most of America, from $420,680 in 2022 to $472,030 in 2023, which is 65% of the national conforming loan limit of $726,200. In high-cost areas, ceiling loan limits have risen from $970,800 to $1,089,300, which is 150% of the national conforming loan limit.




2023 FHA Loan Limits



Old Floor Limit - $420,680

New Floor Limit - $472,030



Old Ceiling Limit - $970,800

New Ceiling Limit -$1,089,300

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