Higher Loan Amounts for 2020
The maximum mortgage loan amounts for conventional, FHA, and VA loans have all been increased for 2020. Here’s what the new loan amounts are, and what the higher loan amounts for 2020 mean for you.
The maximum conventional conforming loan amount in the Metro Denver counties (Adams, Arapahoe, Broomfield, Denver, Douglas, and Jefferson) is now $575,000. In Boulder County, the new maximum loan amount for conventional conforming loans is now $644,000. These loan amounts are for 1-unit properties. For 2-4-unit properties, the maximum loan amounts are higher.
The maximum loan amounts for FHA loans has also gone up for 2020. The new maximum FHA loan amounts are the same as they are for conventional loans in the counties listed above.
VA loans no longer have a maximum loan amount, regardless of the county.
It is possible to get a conventional mortgage for more than the conventional loan amounts listed above, but it would be considered a jumbo loan, and would have higher down payment requirements and stricter underwriting guidelines.
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 conventional loans is only 5% of the purchase price (some only require 3% down – ask us for details). For an FHA loan, you only need 3.5% down. If you get a VA loan, you don’t need any money down.
The underwriting guidelines for these loans are also much more lenient than they are for jumbo loans, so they are easier to qualify for.
To take advantage of these higher loan amounts, contact us today.