Good news for Boston condo buyers and sellers: The Federal Housing Finance Agency (FHFA) just increased the conforming loan limits for 2023, making it easier to qualify for a loan.
A conforming loan meets government-sponsored enterprises Fannie Mae and Freddie Mac’s guidelines, which are much more flexible than the ones for jumbo loans (amounts above the conforming limits). Having a higher conforming limit in an expensive area like downtown Boston which means more people may be eligible to buy a Back Bay, Beacon Hill or Seaport condo. And they can do so without the larger down payments, higher credit scores and cash reserves that jumbos often require.
2022 and 2023 conforming loan limits for one-unit properties (single-family homes and condos), as well as two- to four- unit properties are shown below. There are two types of conforming loans—traditional and high balance. The downtown Boston is a high cost zone, so the high-balance limit applies. These limits are in effect now.
I think this is great news for Boston condo buyers and sellers, its a boost in the arm that the Boston condo or sale market desperately needs at this time as interest rates shot up.