Conforming Loan Limit Increase for 2023: How it Impacts U.S. Transferring Employees

Published: Wednesday, December 7, 2022
Cheryl Pfaffenberger

What You Need to Know About the Conforming Loan Limit Increase for 2023

In November of 2022, the Federal Housing Finance Agency (FHFA) announced the conforming loan limit values (CLLs) for Fannie Mae and Freddie Mac will increase from $647,200 to $726,200 in 2023. This is an increase of $79,000 and will impact one-unit properties in most of the United States.

What is the Conforming Loan Limit?

The conforming loan limit is the maximum loan amount for one-unit properties that can be guaranteed and purchased by Fannie Mae and Freddie Mac. A loan amount higher than the conforming loan limit is considered a jumbo loan.

How is the Conforming Loan Limit Determined?

The Housing and Economic Recovery Act of 2008 (HERA) requires that the conforming loan limit be adjusted each year to reflect the change in the national average U.S. home price. According to FHFA, home prices increased 12.21% on average between the third quarters of 2021 and 2022, so the conforming loan limit will increase by the same percentage.

What Does this Mean for Your U.S. Transferring Employees?

This is good news for organizations with U.S. transferees or assignees who are hoping to purchase a home in the United States. An increase in the conforming loan limit means employees can borrow an additional $79,000 without requiring a jumbo loan, which is typically more difficult to qualify for and requires more documentation than a conforming loan.

How Does This Impact High-Cost Areas?

A high-cost area is a location in which 115% of the local median home value exceeds the conforming loan limit. In these high-cost areas, the conforming loan limit can go up to a ceiling of $1,089,300 (150% of $726,200).

In any given year, there are roughly 150-200 counties in the U.S. that are considered high-cost areas, and many employers need to entice employees to relocate to these locations. Some examples include areas in the vicinity of New York City, the San Francisco Bay Area, and Washington D.C. and surrounding counties. The increase of the conforming loan limit may put these areas within reach for some transferring employees through easier-to-obtain financing.

Whatever the financing needs of your transferees may be, SIRVA Mortgage is here to help. With over 30 years of focus and expertise in relocation mortgage lending, we understand the important role home financing plays in the relocation process. Please visit our mortgage website to learn more or contact us at


SIRVA Mortgage, Inc. (NMLS Unique Identifier# 2240) is engaged in the business of originating residential mortgage loans. We are licensed or authorized to conduct mortgage loan origination in all 50 states plus the District of Columbia.  SIRVA Mortgage is not a depository institution and does not act as or represent itself a full service bank.  Reference to the term “mortgage banker” is a common, accepted industry term referring to companies engaged only in the business of making mortgage loans.  Various state laws and regulations and our individual license in various states refer to us as a mortgage lender, mortgage banker or mortgage broker. For our Privacy Policy and Affiliated business relationships please visit Call 800-531-3837 for more information. SIRVA Mortgage, Inc. is licensed by (among others): Arizona Licensed Mortgage Banker, License #BK-901430; Licensed by the  Department Corporations under the California Residential Mortgage Lending Act, Lender License #413-0944; Georgia Residential Mortgage Licensee #6221; Illinois Residential Mortgage Licensee; Kansas Licensed Mortgage Company, License # SL.0000368; Massachusetts Mortgage Lender, License #ML1341; Licensed by the Mississippi Department of Banking and Consumer Finance, Mississippi Licensed Mortgage Company #369/2009; Missouri Residential Mortgage Licensee; Montana Mortgage Lender License #39706, Licensed by the New Hampshire Banking Department; Licensed by the New Jersey Department of Banking and Insurance; New York Licensed Mortgage Banker by the N.Y. State Banking Department; Ohio Mortgage Broker License #MB.803887.000; Licensed by the Pennsylvania Department of Banking; Rhode Island Licensed Lender; Texas Mortgage Lender, License # 44605; Licensed as a Mortgage Lender by the Virginia State Corporation Commission, license #MC-310. This is not an offer of credit or an offer to enter an interest rate lock-in agreement nor is this notice of loan approval. Main Office of SIRVA Mortgage, Inc.; 6200 Oak Tree Blvd., Ste 300, Independence, OH  44131; Telephone: 1-800-531-3837.

Contributor: Linda Laramy, Director Client Services, SIRVA Mortgage