Real Estate Blog

2023 Nationwide Forward Mortgage Limits Increased

The Federal Housing Administration (FHA) published Mortgagee Letter 2022-20, 2023 Nationwide Forward Mortgage Limits, which provides the maximum mortgage limits for FHA-insured Title II forward mortgages. These new loan limits are effective for case numbers assigned on or after January 1, 2023, through December 31, 2023.

FHA's "floor" and "ceiling" loan limits will increase from $420,680 and $970,800 in Calendar Year (CY) 2022 to $472,030 and $1,089,300 [1] in CY 2023, respectively, for a one-unit property.

The following table lists the CY 2023 FHA loan limit thresholds for low-cost and high-cost areas:

Property Size    Low-Cost Area "Floor"   High-Cost Area "Ceiling"

One-Unit           $472,030                         $1,089,300

Two-Units         $604,400                         $1,394,775

Three-Units       $730,525                         $1,685,850

Four-Units        $907,900                          $2,095,200

Mortgagees may view the list of areas at the "ceiling" and areas with limits between the "floor" and "ceiling" - along with lists that can be sorted by state, county, or Metropolitan Statistical Area (MSA) or by calendar year - on the Maximum Mortgage Limits web page.

CY 2023 loan limits for FHA-insured Title II forward mortgages will be incorporated in a future version of the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1).

[1]Alaska, Hawaii, Guam, and the U.S. Virgin Islands are subject to a higher "ceiling." See Mortgagee Letter for details.

Read the press release for more information.

2023 Nationwide Home Equity Conversion Mortgage Limits

The Federal Housing Administration (FHA) published Mortgagee Letter 2022-21, 2023 Nationwide Home Equity Conversion Mortgage (HECM) Limits, which provides the Calendar Year (CY) 2023 maximum claim amount for FHA-insured traditional HECM, HECM for purchase, and HECM-to-HECM refinances.

The maximum claim amount for FHA-insured HECMs for all areas, including Alaska, Hawaii, Guam, and the U.S. Virgin Islands, in CY 2023 will be $1,089,300; 150 percent of the Federal Home Loan Mortgage Corporation's (Freddie Mac) national conforming limit of $726,200. This limit applies to case numbers assigned on or after January 1, 2023, through December 31, 2023.

The maximum CY 2023 claim amount for FHA-insured HECMs will be incorporated in a future of the Single Family Housing Policy Handbook 4000.1 (Handbook 4000.1).

Read the press release for more information.