FHA Loan Limits for 2016 have increased again for Colorado which only confirms that Colorado’s Real Estate market is continuing to improve causing housing prices to still be on the rise.
Now, this is good news but also has its drawbacks. With the increased limits it means our economy is doing well but on the drawback it means housing costs are increasing, making it more difficult to find affordable housing.
This will help those of us, who can afford a little higher purchase price BUT don’t necessarily have the highest credit scores and/or may not have 5-20% to put down. This means that FHA is a great option helping to avoid a non-conforming (Jumbo) loan, which do have more stringent guideline requirements (i.e. assets, credit score, down payment).