What was the maximum conforming loan amount as of 2023?

The maximum conforming loan amount as of 2023 was set at $647,200. This figure is established by the Federal Housing Finance Agency (FHFA) and is adjusted annually based on changes in the average U.S. home prices. Conforming loans are those that meet the guidelines set by Fannie Mae and Freddie Mac, which include limits on the loan amounts.

The significance of this limit is crucial for homebuyers, as it dictates the threshold above which loans may no longer qualify for purchase by these government-sponsored enterprises, potentially resulting in higher interest rates and more stringent underwriting criteria for loans above this amount.

Understanding the conforming loan limits is essential for mortgage professionals, as it directly impacts financing options available to borrowers and the overall health of the housing market.