I am Tammy Stowe, Sr. Mortgage Banker with Atlantic Bay Mortgage Group. There’s no doubt the past year has been challenging, but as we look toward 2023, I wanted to end on several positive notes! Discover exciting updates on new loans, inflation, and medical debt relief in our real estate roundup.

New 2023 Loan Limits

The new Conforming and FHA loan limits are here! Based on the Federal Housing Finance Agency’s (FHFA) November 30 announcement, effective immediately, Atlantic Bay has increased our 2023 Conventional loan limits to $726,200 for one-unit properties for most counties. That’s more than a 12.21% average increase over the previous $647,200.

This increase means now your buyers can enjoy more flexible lending and down payment options for larger loan amounts instead of requiring “jumbo loans,” which are typically harder to qualify for and carry higher interest rates because Fannie and Freddie do not back them. You can find 2023 Conforming Loan Limits for all counties at FHFA Conforming Loan Limits. Meanwhile, the best way to know FHA’s new loan limits is by visiting the FHA Mortgage Limits webpage and looking them up by county.

VA and USDA have not released 2023 guidance; however, we anticipate their announcements in the upcoming weeks, and we’ll let you know. Want to run the numbers for a client? Just call me!

Inflation Update

The November Consumer Price Index (CPI) report showed signs of inflation starting to slow, which prompted the first decline in rates we have seen this cycle. If we can get a few more reports to confirm that inflation has peaked, it most likely means that mortgage rates have also peaked.

Of course, rates will still depend on the Federal Reserve and actual economic data, but we could see rates come down in 2023; however, just like when rates were rising, there will be bumps along the way. As your trusted lender, we will continue to monitor the mortgage market and keep you updated!

Help for Clients with Medical Collection Debt

Finally, don’t forget that in July, the three major credit bureaus—TransUnion, Equifax, and Experian—implemented some significant changes to how they report medical debt. If you have clients for whom medical debt has been a hurdle to a mortgage, they could now be in a much better position to get that loan! 

  • Paid medical collection debt is no longer included on credit reports.
  • Your clients have a full year (versus six months) before unpaid medical collection debt appears on their credit report.
  • In the first half of 2023, accounts under at least $500 (this is still to be determined) will no longer be included on credit reports.

If you have any mortgage questions or want more information about our real estate roundup, don’t hesitate to contact Atlantic Bay. Call us at 704-307-4694 or email atlanticbay@newtocharlotte.com, or you can complete our inquiry form online. We look forward to working together in the new year!