Federal Mortgage Limits Lifted For Denver Metro

Dated: December 4 2015

Views: 484

High conforming loan limits on mortgages will benefit metro Denver more than any other area in the country, according to a new study from Zillow, the Seattle-based real estate valuation firm.

The Federal Housing Finance Administration each year studies home prices in every county to determine whether an area should go above its standard, now at $417,000, for federal backing on a mortgage.

Denver's conforming loan limit was bumped up from $424,350 this year to $458,850 starting next year, making it one of only 39 areas to get a boost.

Zillow estimates the higher limits will allow 62,000 additional homes in major metro areas, including 21,000 in Denver, to become eligible for conventional financing.

The ratio of Denver area homes that don't qualify for conventional mortgages will fall from 14 percent of the total to just 1.1 percent, Zillow said.

Historically, jumbo loans, which lack government guarantees, carried higher interest rates, although the gap has been small lately.

Where borrowers will be helped the most are with more flexible down payment terms than the 25 percent down many jumbo lenders require, said Aaron Terrazas, senior economist at Zillow

Down payments on government-backed mortgages start as low as 3.5 percent, meaning more borrowers will be able to finance the area's more expensive real estate.


Denver Colorado Real Estate Professional -Michael Steffen

Michael is a motivated realtor specializing with investors and new home buyers located in the following areas; DenverArvada,Aurora and surrounding areas. Michael Steffen uses advanced internet marketing to insure your property gets maximum exposure and holds a high value of ethics in his work to ensure the ideal scenario for everyone! For help with buying or selling a property call 303-981-2750!

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Generation Property Group

My name is Michael Ross Steffen. I’m an Exit Realty Cherry Creek Agent in the Denver metro area and Team Leader For Generation Property Group! We specialize in advanced Internet marketing, buying, s....

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