Conforming Loan Limits Top $1 Million in High-Cost Markets

For the first time on record, the baseline conforming loan limit in high-cost areas has surpassed $1 million, meaning that fewer homes will require a jumbo loan in the year ahead

The Federal Housing Finance Agency (FHFA) recently increased its conforming loan limits to $1,089,300 in some high-cost markets, allowing 2 million households across the country to access additional available inventory that won’t require a jumbo loan, Zillow reports. Jumbo loans typically require a minimum credit score of 700 as well as higher down payments and proof of larger cash reserves than conventional loans. 

The FHFA’s new limits will grant prospective buyers a more affordable pathway to homeownership in high-cost markets, but the new $1 million benchmark is only reserved for the nation’s most expensive metro areas. 

For the majority of the country, the conforming loan requirement increased by $79,000 — going from $647,200 in 2022 to a baseline of $726,200 in 2023. In the most expensive parts of the county (103 counties), the conforming loan limit was raised to $1,089,300, topping the $1 million mark for the first time. These counties are largely concentrated in the nation’s most expensive metro areas, along the coasts and in the Mountain West. 

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