This is a YouTube video titled "2023 FHA Loan Limits" containing a detailed explanation about changes in FHA and conventional loan limits, including timing and credit score requirements, presented in December 2022. The content is informative and focused on mortgage financing updates.
We've talked about the conventional loan limits going up and those loan limit increases were active right away. Because on a conventional loan it's all about when that loan is closed and delivered to Fannie Mae or Freddie Mac. So you can start a loan today and easily have it closed and delivered after January 1, which is really when those limits take place. On an FHA loan, it's all based on when the FHA case number is assigned, which is generally at the beginning of the process. You have to have the case number before you get an appraisal so early on. So the FHA loan limits aren't necessarily active right this second. But it's very important to get a coup couple weeks head start. They will be active first thing January 1st and they've increased from a base amount of 420 to 472,000. This means people can get FHA financing with down to a 500 credit score for up to a $472,000 loan amount or they can get a down payment assistance with us. So you can have a buyer with a zero down payment up to $472,000 on a loan amount. And in some areas it's even extended limits. But that's the baseline. It's important to know what's coming in the next few weeks.
