The maximum conforming loan limits for mortgages to be acquired by Fannie Mae and Freddie Mac will increase by 12 percent in 2023, with the limit for two New Hampshire counties hitting $828,000. 

The Federal Housing Finance Agency said in a statement that the national loan limit for one-unit properties will increase from $647,200 in 2022 to $726,200 in 2023. The FHFA adjusts the conforming loan limit annually to reflect the change in the average U.S. home price, as required by the Housing and Economic Recovery Act (HERA). 

Because of median home values, Rockingham and Strafford counties in Southeastern New Hampshire will have higher limits for one-unit properties: $828,000. All other counties in the state will see their limits hit $726,200. 

Almost every U.S. county will see an increase in conforming loan limits in 2023 because of rising home values, the FHFA said. 

The baseline maximum conforming loan limit in 2023 increased by the same percentage as the FHFA’s estimated housing price increase. Using its third quarter 2022 House Price Index report, the FHFA calculated the increase based on estimates of the average U.S. home value over the last four quarters. According to FHFA’s seasonally adjusted data, house prices increased 12.21 percent between the third quarters of 2021 and 2022. 

Strafford and Rockingham counties will have higher maximum limits because 115 percent of the local median home value exceeds the baseline limit. 

Conforming mortgages financed by government-sponsored entities and the FHFA are the most lenient, allowing eligible first-time homebuyers to put down as little as 3 to 5 percent in some cases. Jumbo loans, on the other hand, require borrowers to have higher FICO scores and larger down payments, and also come with asset and reserve requirements.