Conforming Loan Limit

Conforming Loan Limit on Common and High-Cost Counties

Gustan Cho Associates are mortgage brokers licensed in 48 states

The conforming loan limit increase takes effect immediately on common and high-cost counties, according to John Strange, a senior loan officer at Gustan Cho Associates. By now, you may have heard of the updated conforming loan limit thresholds for 2023. Due to increasing home prices, the FHFA and HUD have increased the Conforming loan limit yearly.

Recently, HUD, the parent of FHA and the Federal Housing Finance Agency increased the FHA and conforming loan limit for 2023 to $472,030 and $726,200. The Federal Housing Finance Agency is the regulatory agency for Fannie Mae and Freddie Mac, the two largest mortgage giants in the nation.

The Federal Housing Finance Agency (FHFA) has been increasing conforming loan limit caps yearly. In 2020, the FHFA released conforming loan limit caps from 2019 ($484,350) to 2020 ($510,400). This blog will detail how you can utilize the updated loan limits after January 1, 2023, which is capped at $726,200 in traditional areas and $1,083,300 in high-cost areas on single-family homes..

Conforming Loan Limit For 2023

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Gustan Cho Associates are constantly expanding the loan programs we offer. We currently have the ability to lend with the increased loan amounts in all states we are licensed in

While the new conforming loan limit goes into effect for loan applications received after January 1, 2023, the team at Gustan Cho Associates already able to land on the new loan amounts.

Gustan Cho Associates can get conventional loans with the 2023 higher conforming loan limit closed before the end of the year for you, assuming we start the process soon. In this article, we will discuss the 2023 conforming Loan Limit Increase that Takes Effect Immediately at Gustan Cho Associates.

Benefit of 2023 Conforming Loan Limit

Why is the 2023 Conforming Loan Limit Increase Taking Effect Immediately Important. If you are using a conventional mortgage product, you must follow FANNIE MAE and FREDDIE MAC guidelines. One of their guidelines will be a maximum loan amount. 

For the calendar year 2023, the maximum cap on conforming loan limit is capped at $726,200.

For example, utilizing the 2023 conforming loan limit of $726,200 can help you purchase a $750,000 house with a 5% down payment. 5% of $750,000 is $37,500. The new conventional loan amount financed with the 5% down payment is $712,500 which is within the maximum conforming loan limit cap  of $726,200.

Benefits Of Higher Loan Limit Increase

You may be in the process of a cash-out refinance and would like to take out more money. Or looking to purchase a home and having trouble qualifying for a jumbo mortgage. There is a good possibility the extra loan amount can help you. For example, your home is worth $987,000 and you owe $687,000. You would like to complete a cash-out refinance to buy a vacation rental

With the current 2023 loan limits, you can only raise your loan amount to $726,200. So the total cash out would be $260,800 (minus closing costs). When you use conventional loan program on a cash-out refinance, you can raise the loan amount to $726,200,

Your cash out is now $260,800 (minus closing costs). Still falling in the 80% loan to value cap for all conventional cash-out refinance transactions For more information on cash-out refinances, please visit our CONVENTIONAL CASH OUT GUIDELINES blog. 

Starting The Mortgage Process With Higher Loan Limit Before The Official Start Date

Where are most lenders need to wait until January 1, 2023, to start an application with the new loan amounts, we are able to start the process today. What requirements are necessary to utilize new loan amounts today?
  • 620 credit score
  • 5% down payment (3% for first time home buyers)
  • Debt to Income up to 49.99% (under 43% preferred)
  • Mortgage insurance is required for the down payment of less than 20%

Borrowers who need to qualify and get pre-approved for a conventional loan with a lender with no overlays, the team at Gustan Cho Associates can help. One of the highly skilled loan officers from Gustan Cho Associates will assist you. You’ll be sent an application link and asked to send in the following documentation:

Taking Advantage Of Conforming Loan Limit Increase Prior To New Year

Many homebuyers are getting priced out of the housing market due to skyrocketing home prices. Depite high rates, it is still a seller market. 

  • Last 60 Days Bank Statements – to source down payment
  • Driver’s License
  • Last 30 Days Pay Stubs
  • Last Two Years W2’S
  • Last Two Years Tax Returns – if other income besides W2 is reported

Getting Qualified For A High Loan Limit Conventional Loan

You will then complete the pre-approval process and begin shopping for a property. If you are trying to completely refinance transaction, please send the following documentation: 

  • Driver’s License
  • Last 30 Days of Pay Stubs
  • Last Two Years Tax Returns – if other income besides W2 is reported
  • Last Two Years W2 
  • Current Mortgage Statement
  • Homeowners Insurance Policy

Qualifying For A Mortgage With A Lender With No Overlays

At Gustan Cho Associates, we offer a wide range of mortgage products. We do not have any LENDER OVERLAYS on FHA, VA, or Conventional mortgage loans.

Over 80% of our clients have been turned down by their current lenders or are not getting the customer service they deserve. Mortgage lending can be confusing. We have seen many one-off situations and can help more clients than most banks.

If you do not qualify today, we will set up a customized financial plan to have you qualified as soon as possible. We are available seven days a week for any mortgage advice. Please give us a phone call today. How to start the process? To apply for a mortgage with the updated loan amount, simply call Gustan Cho Associates at 262-627-1965, Text us fro a faster response. Or email us at

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