Higher FHA Loan Amounts Available
The maximum mortgage loan amounts for FHA loans have been increased for 2021. Conventional conforming loan amounts have previously been increased. Here’s what the new loan amounts are, and what the increased loan amounts mean for you.
The maximum FHA loan amount in the Metro Denver counties (Adams, Arapahoe, Broomfield, Denver, Douglas, and Jefferson) is now $596,850. In Boulder County, the new maximum loan amount for FHA loans is now $654,350. These loan amounts are for 1-unit properties. For 2-4-unit properties, the maximum loan amounts are higher.
The new conventional conforming loan amounts are the same as the new FHA loan amounts in these counties.
It is possible to get a conventional mortgage for more than the loan amounts listed above, but it would be considered a jumbo loan, and would have higher down payment requirements and stricter underwriting guidelines.
It is not possible to get an FHA loan for more than these new amounts.
What does this mean for you, the consumer?
If you keep your loan amount at or below these amounts, you will be able to get a mortgage with a low down payment. The down payment requirement for FHA loans is only 3.5% and the down payment requirement for conventional loans is only 5% of the purchase price (some only require 3% down – ask us for details).
If you have any questions about the new loan amounts in other Colorado counties, or if you would like to take advantage of these higher loan amounts, contact us today.