A New Conventional Loan Limit For 2023

Conventional loan
Increased jumbo loan limits are welcomed news for high-end home buyers.

For home buyers looking at higher end and thus more expensive homes, they may likely need to obtain a jumbo mortgage. A jumbo mortgage is a mortgage loan that typically has a high credit quality, but is in an amount above conventional conforming loan limits (CLL’s). This standard is set by the two government-sponsored enterprises, Fannie Mae and Freddie Mac, and sets the limit on the maximum value of any individual mortgage they will purchase from a lender. Since these loans are of higher value and pose a greater risk to lenders, you can expect to pay a higher interest rate than typically seen for conforming loans.

Given the recent run up in home prices across the country, the Federal Housing Finance Agency (FHFA) recently announced that the conforming loan limit values for mortgages to be acquired by Fannie Mae and Freddie Mac (the Enterprises) in 2023 will go up.

New conventional loan limits (CLL’s)

For 2022, the current cap for conventional loans for one-unit properties throughout most of the country is $647,200. Beginning in 2023 however, this cap will be increased by $79,000 to $726,200. With this said, there will be a few exceptions throughout the country. In fact, the FHFA has stated that two U.S. counties will have a lower cap, and additional areas will have a higher cap. As for these additional areas that are deemed to be high-cost markets, the new cap will exceed the $1 million mark for the first time ever – up to $1,089,300 for one-unit properties. As for the Sunshine State, the higher cap will only impact certain areas in Monroe County. The rest of the state will adhere to the new standard limit.

  • To view a complete list of conforming loan limits by county, click here.
  • To view a map showing the conforming loan limits across the country, click here.


Overall, this is welcomed news for home buyers looking to buy higher-end homes in 2023. Although home prices have certainly stalled and even slightly retracted in some areas, on average they are still about 10% higher than they were a year ago. With this said, it makes complete sense that the conforming loan limits will be increased beginning next year. As a reminder, buyers obtaining a jumbo loan should expect to pay a higher interest rate than those seen for traditional confirming loans. On average, you can expect to pay a 1% – 2% higher interest rate. As always, it is wise to consult a knowledgeable mortgage broker to better determine which loan product may be best for your personal situation.

Are you looking to buy your dream home in 2023? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Be sure to download the free Florida Home Search app for your mobile device too.

Categorized as Home Buying

By natasha moore

REALTOR® with Live South Florida Realty, Inc.