2023 FHA Conforming Loan Limits

By Fremont Real Estate Agent - December 12, 2022

Effective January 1, 2023, the FHA national loan limit, or floor, will increase from $420,680 to $472,030 for single-family home loans, marking about an 12.21% increase over 2022's limits. The FHA's loan limit is set at 65% of the national conforming loan limit of $726,200.

In about 65 high-cost areas of the country, the FHA's loan limit ceiling will increase even more--from $970,800 to $1,089,300. High-cost areas are places where 115% of the median home price is greater than the floor (that is, $472,030).

The maximum loan limits for FHA forward mortgages will rise in 3,222 counties, according to the agency.

What is the FHA Loan Limit?

The Federal Housing Administration, or FHA, was created to support low to moderate income homebuyers. The FHA sets loan limits each year for buyers utilizing FHA loans (any loan from a bank or mortgage company that is insured or backed by the FHA) and those limits are based on the average home price for the area in which you are buying a home. The more expensive the average home, the higher the loan limit. The limit is calculating at 11% of the area's median home price, or 150% in high-cost areas.

Each year, the FHA adjusts the loan limits based on the most current sales data available. The loan limits fluctuate with the industry, rising and decreasing with home prices. This is to ensure that buyers in high-cost areas have a fair chance at securing a loan that can help them get into an expensive market.

Download a copy of the 2023 FHA Loan Limit for CA by County here:

The information contained herein is for informational purpose only and Chicago Title Company makes no express or implied warranty regarding the information presented and assumes no responsibility for errors or omissions. For the most current and accurate information available, please refer to www.FHFA.gov. Promotional materials created by Chicago Title Regional Marketing Dept. in CA.