The new 2023 Conventional Loan Limit Increase goes into effect immediately for Texas Premier Mortgage and its clients at $726,200 the previous loan limit for most counties was $647,200. This will apply to your next purchase, refinance, or home equity cash-out mortgage loan.
The loan limit increase is welcome news as most homes across the country have increased anywhere from 10% – 20% over the last few years. The recent boom in property values has left many buyers stuck in-between qualifying for a conventional loan vs a jumbo loan. Jumbo loans typically require more down payment costs on a purchase upfront and often more documentation to qualify than a traditional conventional loan. Conventional loans require a 3% – 5% minimum down payment investment on purchase loans while jumbo loans can require 10% and more depending on the qualifying credit score.
The increase will also provide an easier process with more flexible terms and products at the higher loan amount as compared to your traditional jumbo loan in the underwriting process.
For more information about the new 2023 loan limits on purchase, refinance, and home equity loans and their benefits and loan options, please contact us directly or submit the quick quote form on this page.