It’s that time of year again – the time when the Federal Housing Finance Agency (FHFA) announces the new loan limits for conforming mortgages. This year, the FHFA has announced that the maximum loan limits for conforming mortgages will increase in 2023, due to rising home prices across the country.
For those who may not be familiar, a conforming mortgage is a home loan that meets the guidelines set by Fannie Mae and Freddie Mac, which are the two government-sponsored enterprises that purchase and sell mortgage-backed securities. Conforming loans are typically easier to obtain and have lower interest rates than non-conforming loans, which are also known as jumbo loans.
The loan limits for conforming mortgages are reviewed and adjusted annually, and are based on median home prices in each county. In general, the loan limits are higher in areas with higher home prices and lower in areas with lower home prices. Here in Queens, we are considered a High Cost area.
With that said, for 2023, the FHFA has announced that the maximum loan limit for a single-family home in Queens county will be $1,089,300. The maximum loan limit for a 2 family home in Queens will be $1,394,775. The maximum loan limit for a 3 family home in Queens will be $1,685,850. And the maximum loan limit for a 4 family home in Queens will be $2,095,200. This means that homebuyers in Queens will be able to borrow more money to purchase a properyty, as long as it meets the conforming loan guidelines.
It’s worth noting that these loan limits only apply to conforming loans, and do not affect jumbo loans. Jumbo loans are typically for amounts greater than the conforming loan limits, and often come with higher interest rates and stricter underwriting requirements.
Overall, the increase in conforming loan limits is good news for Queens’ homebuyers, as it means they will have access to more affordable mortgage options in areas like ours which have high home prices. However, it’s important to remember that even with the increased loan limits, it’s still important to carefully consider your budget and financial goals before taking on a mortgage. If you need help getting pre-approved or finding out how much you can qualify to borrow, feel free to Contact Us.
If you’re thinking about buying a home in the near future, it’s a good idea to start by getting pre-approved for a mortgage so you have a better idea of how much you can borrow. You can also work with a mortgage lender or financial advisor to determine the best mortgage options for your unique situation. If you need a recommendation to a local mortgage lender, feel free to reach out. We have lenders that we know and trust and we would be happy to connect you with them 🙂
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