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Updated over 2 years ago, 09/08/2022

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Chris Mason
Pro Member
  • Lender
  • California
10,776
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9,925
Posts

*Live Today* 2023 Loan Limits - $715k LCOL, $1.072m HCOL

Chris Mason
Pro Member
  • Lender
  • California
ModeratorPosted

Rocket Mortgage, largest mortgage bank in the country, went live with the anticipated/guessed 2023 loan limits yesterday. The largest wholesale lender used by independent mortgage brokers rolled it out today (you can't roll something out like this in 24h, and they hate each other so didn't collaborate, I'm chalking it up to coincidence and/or both waiting for the same data-point to make the calculation/guess).

They both guessed/calculated the same number. $715k for conforming conventional, which yields $1.072m for high balance areas (that's your San Francisco, NYC, Oakland, San Jose, Los Angeles, etc). For medium areas, like Sacramento, it'll be a number in the middle. 

This makes $750k with 5% down, meh credit, and no reserves, totally doable if your income otherwise supports it, in most of the country.

In the high cost of living areas, it puts $1.125m on the table for same. 

I took a screenshot of the 2-4 unit loan limits (from a live webinar a few minutes ago), and then promptly lost the screenshot. heh.

Availability, again, for now there's basically 2 choices:

- Largest mortgage bank in the country, Rocket/Quicken (same company).

- Local independent mortgage broker (who will broker it to the 2nd largest mortgage bank in the country, UWM). These are priced identical to 'normal' high balance loans, no rate/fee hit aside form that.

The "official" announcement of the 2023 loan limits will come around thanksgiving, and it will "officially" be in place/available on Jan 1, 2023. What these large well capitalized lenders are doing (this takes deep pockets), is they will hold these loans on their books until Jan 1, 2023, and sell them at that point. As we get closer to Jan 1, the pockets will not need to be as deep, so more and more will roll it out. 

  • Chris Mason
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