HUD has released the 2017 FHA loan limits to take effect next month. Good news for FHA borrowers is that HUD kept in step with Fannie & Freddie on conventional mortgage loan limits. FHA loan limits are based on the county, so you will see ranges all over the board on the front range of Colorado. For the most part we will see an increase in Colorado. FHA sets these limits at or between the low-cost area and high-cost area limits based on the median house prices for the area. To check the full list of FHA loan limits click here
(** For reference purposes the reference above to Denver County includes the following counties: Denver County, Jefferson County, Douglas County, Arapahoe County, Adams County, Broomfield County)
This marks the 3rd straight year Colorado has seen an increase to the FHA loan limits. Click Here to read the full announcement in the FHA mortgagee letter.
IMPORTANT to note; your FHA case number assignment date dictates your eligibility for the new FHA loan limits. This change will not take effect until case number assignments on/after Jan 1, 2017.
There are many benefits to an FHA mortgage, and the new FHA loan limits will definitely help with the increasingly higher cost of housing in the Colorado real estate market. Make sure to ask your mortgage professional about reasons you may want to compare FHA to a conventional/VA/USDA loan to determine the proper structure and strategy when you buy your new home, or refinance your home loan.
Definitely make sure to look into FHA 203K loans if you own a 2-4 unit property and live in one unit. Being as high as those loan limits are for 2-4 units you can do quite a bit of remodeling to a home to build equity and increase rents on the units you don’t live in.
If you would like to chat, give us a call 303-779-0591