FHA Announces Higher Loan Limits for 2023

December 7, 2022

The Federal Housing Administration has announced higher FHA loan limits for 2023. New FHA limits have also been released for FHA Home Equity Conversion Mortgages or FHA HECM loans.

According to HUD.gov and the FHA, “most of the country” will enjoy this loan limit increase in 2023 due at least in part to  house price appreciation during the first half of 2022. A press release on the FHA official site says that appreciation is, “factored into the statutorily mandated calculations FHA uses to determine the limits” each new year.

“The loan limits announced today reflect steep increases in home prices throughout much of the country and will ensure continued access to FHA-insured mortgage financing despite those increases,” according to Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon, who was quoted in the press release.

The new forward mortgage loan limits for FHA case numbers assigned on or after January 1, 2023 are as follows:

• Single Unit Homes: $472,030 to $1,089,300 in high-cost areas, with Alaska, Hawaii, Guam, and the U.S. Virgin Islands at $1,633,950.
• Two-unit properties range between $604,400 and $1,394,775, with Alaska, Hawaii, Guam, and the U.S. Virgin Islands at $2,092,150.
• Three-unit properties range from $730,525 to $1,685,850 with Alaska, Hawaii, Guam, and the U.S. Virgin Islands at $2,528,775.
• Four-unit properties range from $907,900 to $2,095,200 with Alaska, Hawaii, Guam, and the U.S. Virgin Islands at $3,142,800.

FHA Mortgage limits for Alaska, Hawaii, Guam, and the U.S. Virgin Islands are adjusted by the FHA, “to account for higher costs of construction” according to the official site.

In 2023, the maximum FHA loan amount increases in more than three thousand counties. Only 12 counties will remain unchanged. When it comes to FHA HECM loans, maximum claim amounts increase from $970,800 (2022) to $1,089,300 (2023) effective for FHA case numbers assigned on or after January 1, 2023.

According to HUD.gov, that maximum claim applies to all areas, including Alaska, Hawaii, Guam, and the U.S. Virgin Islands.

These FHA loan limits take effect on January 1, 2023. If you have an FHA loan case number assigned prior to that date, the 2022 FHA loan limits will apply to your transaction.  Ask a participating lender whether the new rates apply to your transaction if you aren’t sure about the date of your FHA loan case number.

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