As you know, the housing market can change in the blink of an eye. With it, it changes mortgage rates and loan limits. As of 2023, a new loan limit will be available to borrowers. If you are in the market for a new home, the team at Indigo Mortgage is here to provide you with some useful information for the upcoming year.

There is a new mortgage loan limit rolling out in 2023. The new conforming loan limit will be set at $714,000. In most situations, this amount will not be available to borrowers until next year; however, Indigo Mortgage works with a few lenders allowing us to offer this increased limit today. This is a big deal because the higher mortgage loan limit takes the loan out of the jumbo loan program and keeps it as a conventional loan.

The jumbo loans require a ten to twenty percent down payment, but the conventional allows as little as five percent down. Jumbo loans also come with a higher mortgage interest rate than conventional ones, which means taking a conventional loan can save the buyer thousands of dollars throughout the mortgage. Conventional loans also allow higher debt ratios and offer the buyer lower mortgage insurance payments.

As you can see, there are many benefits to the new loan limit that favor the borrower. Purchasing a home is a huge responsibility and requires a lot of research. If you are in the market for a new home and are interested in a higher home mortgage amount, reach out to Indigo Mortgage in New Mexico. Our team of experts is here to answer any questions you may have.