Larger Loan Amounts

 In First-Time Home Buyers, Qualifying for a Mortgage, Refinancing your Mortgage

We’d like to wish everyone a happy new year! Whatever your goals or resolutions are for the coming year, we have some news that might affect your plans for 2019: The maximum mortgage loan amounts for conventional, FHA, and VA loans have all been increased for 2019. Read on to get the new loan amounts, and more importantly, to find out what these new limits mean for you.

Larger Loan Amounts

The maximum conventional conforming loan amount in the Metro Denver counties (Adams, Arapahoe, Broomfield, Denver, Douglas, and Jefferson) is now $561,200.  In Boulder County, the new maximum loan amount is now $626,750. These loan amounts are for 1-unit properties. For 2-4-unit properties, the maximum loan amounts are higher.

Jumbo Loans

It is possible to get a mortgage for more than these amounts, but it would be considered a jumbo loan, and would have different down payment requirements and different underwriting guidelines.

What does this mean for you, the consumer?

If you keep your loan amount at or below these amounts, the down payment requirement for conventional loans is only 3% of the purchase price.  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.

What’s the Deal?

Why did the government raise the loan amounts?  The simple reason is because housing prices are increasing, and the government agencies that deal with mortgages (Fannie Mae, Freddie Mac, FHA, and VA) all want to make sure most people can easily qualify for a mortgage with a low down payment.

There are also loan programs available that require less than the down payments listed here. Ask us how to qualify for one of those. It’s easier than think!

As always, feel free to contact us, if you have any other questions.

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