The Federal Housing Finance Agency (FHFA) has raised the 2023 baseline conforming loan limit (CLL) in most of the United States due to the home value growth surge seen in 2022.

That means Fannie and Freddie will be able to purchase mortgages up to $726,200 in 2023 – a hefty $79,000 increase from this year. The new ceiling loan limit for one-unit properties and in high-cost areas like San Francisco and New York will be $1,089,300 (which is 150% of $726,200), crossing the million-dollar threshold for the first time.

States with special statutory provisions, including Alaska, Hawaii, Guam, and the US Virgin Islands, will also have the $1,089,300 baseline loan limit for one-unit properties. Meanwhile, CLLs for properties with two units will be capped at $1,394,775 in high-cost areas, three units at $1,685,850, and four units at $2,095,200.