So FNMA has again acknowledged what we know to be true. With the release of the Conventional Loan Limits for 2016, fannie mae sees the cost of living is more expensive in Denver, than even last year. Simply put, living in Denver and the surrounding areas continues to become more expensive. As a result, Fannie Mae increased it’s loan limits for the 2nd straight year. Here are some sample counties and their respective Conventional Loan Limits for 2016 in Colorado. This is for 1 unit homes (not 2-4).
- Denver, Arapahoe, Broomfield, Jefferson, Douglas, Adams: $458,850
- Boulder County: $474,950
- Larimer, El Paso, Mesa Counties: $417,000
- Summit / Routt Counties: $625,500
What this means, is if you reside/buy in a high cost area like Denver, you will be able to borrow up to $458,850 on the first mortgage amount. Be prepared it is possible the interest rate is slightly higher than if you borrow $417K, which is the national conforming loan limit. However, this is great news for the Denver Metro area with rising home prices.
Make sure that you consult with your lender to learn how the Conventional Loan Limits for 2016 can positively help you should you be buying a more expensive home. If you need to take a mortgage for more than $417,000 this could help you with leverage by not requiring as large of a down payment as jumbo mortgages require.
This would also apply if you refinanced your existing mortgage with a balance up to these amounts. If you would like to learn more, or have questions let us know, and ask a question from our home page.