The new loan limits for mortgages backed by the Federal Housing Administration (FHA) and the Department of Veterans Affairs (VA) have been announced for 2023, and they have been increased in many areas of the country, including California. In addition to these changes, the conforming loan limits for mortgages backed by the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) have also been increased.
In California, the FHA’s loan limits have increased in all counties. This means that borrowers in the state may now be able to qualify for larger loans, making it easier to afford a home. The FHA’s new loan limits for California range from $472,030 and the ceiling is $1,089,300, depending on the area. The VA’s loan limits range no longer have a county loan limits. As of 2021, VA Circular 26-19-30, the VA announced that President Trump signed the Blue Water Navy Vietnam Veterans Act that removes all county loan limits for Veterans.
The conforming loan limits for Fannie Mae and Freddie Mac have also been increased for California in 2023. These limits vary by county and range from $726,200 and $1,089,300. Conforming loans are those that meet the guidelines set by Fannie Mae and Freddie Mac, and they are often more readily available and have more favorable terms than non-conforming loans.
If you are considering a mortgage in California, it’s important to check the loan limits for your area to see if you may be eligible for a larger loan. You can find the loan limits for your area by using the FHA’s and VA’s loan limit tools, or by contacting a mortgage lender.