FHFA Announces 2023 Conforming Loan Limits
November 29, 2022 Government & Community Affairs, Industry News
On Tuesday, the Federal Housing Finance Agency (FHFA) announced new conforming loan limits (CLLs) for mortgages to be acquired by Fannie Mae and Freddie Mac in 2023.
On Cape Cod, the new FHFA mortgage loan limit will be $729,600, an increase of $79,700 from the previous limit of $647,200 in 2022. Dukes and Nantucket counties are considered “high-cost” areas by FHFA and have loan limits 150% of the conventional limit. In 2023 the loan limit will be $1,089,300.
2023 Cape Cod Conforming Loan Limit: $726,900
2023 Dukes & Nantucket Counties Conforming Loan Limits: $1,089,300
The new conventional loan limit is reflective of the FHFA price index increasing 12.21% between third quarter 2021 and 2022, thus raising the baseline for all loan limits nationwide.
"This is good news to those seeking to buy a home on Cape Cod, Martha's Vineyard, and Nantucket. It makes homeownership more accessible to deal with the escalating home prices we have seen throughout the region. Fannie Mae and Freddie Mac serve an important purpose in our housing market locally and nationally.
Now, as a region, we also need to tackle our dire need for more housing opportunities to allow these financing avenues to become truly accessible." says CCIAOR CEO Ryan Castle.
The conventional loan limit is important as it is the maximum amount of money a lender can lend for a loan backed by Fannie Mae or Freddie Mac - which makes up a large portion of many a lender's loans. Any loan amount above that amount is subject to ‘jumbo’ financing and usually comes with higher down payments and more stringent approval requirements making them less accessible for many buyers.