For those of you shopping for mortgages, you may enjoy hearing this news - federally backed mortgage loan limits have just increased. With interest rates still at historic lows, this means you may have more wiggle room, financially, to get into a home in Boulder Valley or the Denver metro area. What does this mean to you? First, allow me to back up a bit and give this announcement some context.
As you know, real estate prices fluctuate, and for the past seven years or so, most of the prices for a home in Colorado are moving up (rapidly!). This can become a frustrating game of keep away for a home buyer, who is trying to qualify to buy a home. However, with each passing month, as buyers witness the consistent appreciation of homes in Colorado, the less qualified buyers feel they can afford. However as of January 1, 2017, The Federal Housing Finance Agency, which regulates loan limits for conforming and FHA loans, decided that an adjustment was due in order to keep up with current market conditions. In other words, banks who offer federally backed mortgages are now allowed to loan more money on a single family home.
According to Nerdwallet writer Hal Bundrick, "The government-sponsored entities that drive the home loan market are known as Fannie Mae and Freddie Mac. These behind-the-scenes organizations provide a secondary market for mortgages — allowing lenders to package loans into investment bundles, sell them and lend again. As part of their structure, they are legally bound to purchase various types of mortgage loans under a certain value, known as the 'conforming loan limit'.
If you are shopping for a mortgage, I've listed the new loan limits for conforming FHA loans in a simple to view table below. Of course, your down payment will still be a minimum of 20% for conventional loans and 3% for these types of loans, but now you can borrow more to get into a house in that neighborhood that you had your eyes on months ago, but which may have appreciated since you started shopping around last year. Last year conforming loan limits was set at $417,000 for single family homes, but for 2017 is has moved up to $424,000. That said, FHA loan limits are calculated county by county, with the following breakdown of counties in and around our neck of the woods on the eastern slope in Colorado.
FHA Loan Limit
County in Colorado
To find FHA loan limits in other counties and states in the US, visit the HPI County Map Index here.
With regards to VA loans, according to Military.com, "The VA loan guaranty program does not impose a maximum amount that an eligible veteran may borrow using a VA loan but limits the maximum guaranty amount to $424,100 for 2017." To find loan limits for VA loans in other states and counties visit here.
If you have been following Louisville Realty Associates on social media you will know that we provide regular updates on what we think home owners and home buyers may be like to know. We also provide snapshots of market data for East Boulder County. While it is easy to get lost in the multitude of statistics available for everyone to look at online, we always keep our data sweet and simple. Check out East Boulder Town market statistics here. At Louisville Realty Associates, our wonderful agents have the experience, energy and depth of knowledge to help you list your home for the best price. You can reach us anytime at firstname.lastname@example.org.
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