Conforming Loan Limits & What it Means
The FHFA just released new conforming loan limits for 2023 - increasing the baseline limit by $79k from the 2022 limit of $726,200. So we are sharing three things you should know about conforming loan limits. Watch our video and read below!
1.What does it mean?
A conforming loan limit is the max amount that can be guaranteed by Fannie Mae and Freddie Mac (aka, the government) for a home loan. You can get a higher loan amount - called a jumbo loan - but these come with even higher interest rates.
2. What is new limit for Davidson County in 2023?
$890,100. An increase from 2022’s limit of $694,600.
3. Why should this matter to you?
The new limit accounts for the rise in home prices - for Nashville, the avg sales prices for single family homes is up about 18% overall from the same time last year. With the new limit you could stay out of jumbo loan status and still buy a house over $1.1M with 20% down.
Contact us if you want to learn more or talk about your home buying goals in 2023.