The higher conforming loan limit means more than 2 million homes across the country no longer require a jumbo loan, according to a new analysis by Zillow Home Loans.
- “For the majority of the country, the conforming loan requirement increased by $79,000 — going from $647,200 in 2022 to a baseline of $726,200 in 2023. In the most expensive parts of the county (103 counties), the conforming loan limit was raised to $1,089,300, topping the $1 million mark for the first time.”
What This Means For Housing. Jumbo loans typically require a higher credit score versus the score of 620 that many require for a conforming loan. Bigger down payments are also the norm with a jumbo loans. Typically around 20% down is required however some products call for even higher down payments. Some jumbo loans also will require proof of larger cash reserves than conventional loans.
Analysis. Nicole Bachaud, Zillow Home Loans senior economist. noted this is good news for home buyers as price appreciation slows. “Home price appreciation has slowed significantly, and this means that homes nearing jumbo loan territory will stay eligible for conforming loans longer than we have seen in the last few years.”