New Year, New Conforming Loan limits
Conforming Loan Limits have increased starting January 1, 2023, and VLG is going to explain what that means for you! The most important thing to know is that Conforming Loan Limits are the maximum loan amounts that borrowers can obtain if they are purchasing another home with their VA Loan
What does that mean for you?
If you don’t have an outstanding VA Loan, (you can get one right here) these limits won’t apply to you just yet. But if you do currently have a VA loan, then here’s what you should know about the conforming loan limits in 2023!
How Entitlement Works
Normally, VA Loans don’t have loan limits. Regardless of the loan amount, the VA insures a percentage of the loan for the lenders. Eligible Veterans with a VA benefit have a certain amount of entitlement to use per VA Purchase. If you already have a VA Loan, part of your veteran benefit will show up as used, this is what we call impacted entitlement. For example, if you’re still paying a VA Loan or had a foreclosure, your entitlement would be considered impacted, and these conforming loan limits apply.
How It’s Changed in 2023
The baseline conforming loan limit for 2023 is $726,200 – which increased from $647,200 in 2022. Home prices vary quite a bit from state to state, and even from county to county. These limits are higher in Hawaii and Alaska, where the amount is $1,089,300 for a 1-unit property. If you’re seeking a loan amount higher than the conforming loan limit in your county, you’ll have to get a jumbo loan that allows for higher loan limits. If you plan on purchasing with no Outstanding VA Loan, there is No County Loan Limit.
Contact VLG to Check Your Loan Limit in Your Area
Contact us today to find out what your loan limit would be in your area or check the status of your entitlement!
