Earlier this month, the Federal Housing Finance Agency said that the maximum conforming loan limits for mortgages acquired by Fannie Mae and Freddie Mac will increase by 12% nationally in 2023. This is excellent news for homebuyers in Greater Boston, as the loan limit for one-unit properties in Essex, Middlesex, Norfolk, Plymouth, and Suffolk counties will increase by more than $100,000 to a limit of $828,000.
This increase is in line with the Housing and Economic Recovery Act (HERA), which requires the Federal Housing Finance Agency (FHFA) to adjust the conforming loan limit annually to reflect the change in the average U.S. home price. According to the FHFA's seasonally adjusted data, house prices increased 12.21% between the third quarters of 2021 and 2022, leading to this increase in the conforming loan limit.
It's important to note that the conforming loan limit for one-unit properties in Dukes and Nantucket counties will be even higher at $1,089,300. This is because 115% of the local median home value exceeds the baseline limit, and HERA limits the maximum conforming loan ceiling to 150% of the baseline.
Conforming mortgages financed by government-sponsored entities and the FHFA are often more lenient than jumbo loans, allowing eligible first-time homebuyers to put down as little as 3-5% in some cases. If you are in the market for a new home in Greater Boston or the Islands, now is a great time to consider taking advantage of these increased loan limits and potentially lower down payment requirements. Reach out to one of our agents to get more details!