New FHA Loan Limits for 2023!
As we approach the new year, we welcome the new FHA loan limit increases. The Federal Housing Administration (FHA) insures both forward and reverse mortgages so this announcement includes two different increases.
Like conforming loan limits, the loan limits for FHA forward mortgages vary from county to county. Below is an outline of the varying loan limits and some county-specific loan limits in California:
|Number of Units||Low-Cost Area “Floor”||High-Cost Area “Ceiling”|
Snapshot of California County Limits
For reverse mortgages, or HECM (Home Equity Conversion Mortgage), the loan limit is increasing to $1,089,00. This is an increase from $970,800 in 2022. Like the forward mortgage high-cost area loan limit, the HECM loan limit is determined by taking 150% of the national conforming loan limit. The difference with the reverse mortgage loan limit is that this applies to all properties regardless of where they are located.
If you have questions about FHA loans, these new loan limits, and/or if an FHA loan is right for you, give us a call at (760) 930-0569.