FHA loan limit set to surpass $1 million in priciest markets
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The Federal Housing Administration on Thursday unveiled 2023 limits for loans it guarantees, with the maximum amount surpassing $1 million in the priciest communities.
Maximum loan limits for FHA-backed forward mortgages will rise in 3,222 counties beginning on Jan. 1. In 12 counties, they will remain unchanged. The maximum amount permitted increases to $472,030 for mortgages of single-unit properties in designated low-cost areas to $1,089,300 in the highest priced markets within the continental U.S. The low-cost floor applies to areas where 115% of median home prices fall below the limit. The ceiling in Alaska, Hawaii and certain U.S. territories will also be set to a higher mark of $1,633,950 due to the cost of construction.
"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," FHA Commissioner Julia Gordon said in a press release.