We are well into 2023, yet there are still some questions as to what the real estate market will look like in the months ahead, how much inflation will subside, and what mortgage rates will do. Something we know for sure are the new loan limits for our region, and I am happy to report that they have been expanded considerably.
The conforming loan limits are required by the Housing and Economic Recovery Act (HERA) to reflect the percentage change in the average U.S. home price during the most recent 12-month or four-quarter period ending before the time of determining the annual adjustment. In 2023, the conforming loan limit will rise 12.21% because FHFA has determined that the average U.S. home value increased by that amount between the third quarters of 2021 and 2022.
Let’s break this down for the Maryland counties in the Baltimore and DC regions, as there are some differences.
Baltimore Region
Anne Arundel, Baltimore City, Baltimore, Carroll, Harford, Howard
Conventional Loan Limit $726,200
FHA Loan Limit $632,500
VA Loan Limit $2,000,000 (No down payment for fully eligible Veteran)
DC Region
Calvert, Frederick, Montgomery, Prince Georges
Conventional Loan Limit $1,089,300
FHA Loan Limit $1,089,300
VA Loan Limit $2,000,000 (No down payment for fully eligible Veteran)
One other reminder, it does not take 20% down to buy a home. Standard conventional loans allow for as little as a 3% down payment, FHA loans only require a 3.5% down payment, and VA loans, for eligible Veterans, are available with no down payment using a VA Loan.
If you are interested in learning more about the options you have for buying a home in 2023, let’s schedule a call! Contact me today! I would be happy to refer you to a great local Annapolis lender with GRA!