2023 Conforming Loan Limits: What Do They Mean for You?

2023 conforming loan limits breakdown

If you’re planning to buy a home in 2023, you’ll likely need a home loan. There are many different loan products available, with different qualifications and requirements. Among the many options, first-time home buyers often use an FHA loan to make their dream of homeownership a reality or choose a conventional loan.

A conventional loan is one of the most common loan products and comes in two varieties: conforming and non-conforming. We’ll go deeper into what that means later in this article, but it’s important to know that the 2023 conforming loan limits are different than they were in years past. Before you start your home search, be sure you understand the landscape of today’s mortgage and housing market. This will give you a solid frame of reference to ask great questions when you speak with your lender and ultimately aid your decision-making.

What is a Conforming Loan?

Simply put, a conforming loan is one that can be sold to Fannie Mae or Freddie Mac because it meets established guidelines. These loans tend to be more common and cheaper to get since they often have lower interest rates than other loans. Conforming loans also come with loan limits attached that vary across the country. Conforming loan limits are set by the Federal Housing and Finance Agency (FHFA) and often change from year to year, in response to the cost of housing in the United States.

What Are the 2023 Conforming Loan Limits?

In late November, the FHFA announced the new 2023 conforming loan limits. For most of the country, the baseline conforming loan limit (CLL) for a single-unit property is $726,200. This is up from 2022’s CLL of $627,200.

In high-cost areas, those defined by the FHFA as “areas in which 115 percent of the local median home value exceeds the baseline conforming loan limit” the CLL for a single-unit property is now $1,089,300.

The FHFA provides many resources for prospective home buyers to verify what the CLL is in their area. You can find a list of all conforming loan limits organize by US county here. You can also use this interactive map to look at the 2023 conforming loan limits in your area.

What Do the 2023 Confirming Loan Limits Mean for My Upcoming Home Purchase?

If you’re planning to buy a home this year, it’s important to meet with a lender to get pre-approved for a loan so you know what you can afford to buy. From there, you can work with your real estate agent to establish a comfortable budget. Depending on what you can afford to buy and how much you want to spend, a conforming loan may end up being the best choice.


Planning to buy a home this year and wondering if a conforming loan is right for you? Tim Potempa and the Potempa Team offer a wealth of demonstrated experience in the loan industry. With more than $33 billion loan dollars closed and more than 3,500 satisfied clients in multiple states, we can help answer any question you have, pre-approve you for a loan, and ultimately help you close on the property of your dreams. Get in touch with us today!

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