December 2, 2022
On Thursday, December 1, 2022, the Federal Housing Administration published the new FHA loan limits for 2023. There are higher loan limits for FHA forward mortgages in 2023 and also higher limits for FHA Home Equity Conversion Mortgages.
Most of the country gets this loan limit increase in 2023. The higher limits come thanks to house price appreciation during the first half of 2022.
Such home price changes are typically included as part of the calculations FHA makes to set the limits” each new year.
A press release at HUD.gov notes these limits, “reflect steep increases in home prices throughout much of the country” according to Assistant Secretary for Housing and Federal Housing Commissioner Julia Gordon, who was quoted in the press release.
Commissioner Gordon adds the higher limits, “…will ensure continued access to FHA-insured mortgage financing despite those increases,”
Here are the new forward mortgage loan limits. These are for FHA case numbers assigned on or after January 1, 2023:
- 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.
In 2023, loan limits will increase in more than three thousand counties. 12 counties will remain unchanged–these counties will not see a decrease in FHA loan limits, but the amounts will carry over from 2022.
FHA HECM loans see increases, too. Maximum FHA HECM 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 do not take effect until 1 January 2023. FHA loan applicants with a FHA loan case number assigned prior to that date will see the 2022 FHA loan limits applied to that transaction. You must have an FHA loan case number assigned in the new year to claim the higher loan limits.
Bruce Reichstein has spent over three decades as an experienced FHA and VA home loan mortgage banker and underwriter where he was responsible for funding “Billions” in government backed mortgage loans. He is the Managing Editor for FHANewsblog.com where he educates homeowners on the specific guidelines for obtaining FHA guaranteed home loans.
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