Conventional Loan Limits Are Increasing For 2019!
For immediate release: Conventional Loan Limits
Conventional loan limits are increasing for 2019!
Home prices continue to rise across the nation. As announced by FHFA, conventional loan limit changes go into effect Jan 1, 2019. Quick hack if you are buying in December 2018! You can lock in your rate now and even close in December with these new loan limits. This will be the 4th consecutive year Colorado has seen an increase in the conventional loan limits. This increase is a definite sign that housing prices in Colorado are projected to continue to rise.
Check out the link to the interactive map to see what the county in Colorado you are interested in buying in, now lies at for conventional loan limits: At a closer glance, we are seeing another 5%+ increase in loan limits heading into 2019 (over 2018 loan limits) for Colorado housing markets.
How does this affect you?
The affect on a home buyer would impact those buying homes in higher price points. If you are not buying up in these price ranges, this example won’t affect you. Nationally the loan limits are going up to $484,350 as well. If you bought in Denver County in 2019, you could buy up to roughly $590,736 in price and still put as little as 5% down on a home. That would keep your loan amount to the limit for Denver of $561,200 in mortgage. So again, the conventional loan limit changes affect you on loan amount, not on home price.
How does this help?
Many of those in the metro area have had to accept higher home prices to find the right home. And for that reason to find something they want to buy are spending more money than ever before. Not all who spend more on a home want to put down 20% on the home. Most jumbo loan programs require putting 20% down, to obtain the best terms. Similarly there are lower down payment options for more expensive homes, but that will come with a trade-off in rate for jumbo loans. If you are buying well above the conventional loan limit ranges, talk to your lender on what options are available to you for down payment requirements on jumbo mortgages.
In Colorado where real estate costs may be lower, you will follow the national conforming loan limits ($484,350). Make sure to check the interactive map link above to check your county. The loan limit changes currently ONLY apply to conventional loans. At this time FHA and VA have not released their 2019 loan limits. Although in years past FHA & VA tend to follow suit with FHFA when they announce their loan limits. The release of the FHA and VA loan limits for 2019 will soon follow.
This will no doubt open the doors for many home buyers and sellers at or around the tipping point prices. Therefore, if you have further questions about how this impacts you and your home buying situation give us a call. We know navigating the seas of buying a home and taking out a mortgage can be more confusing. Give us a call for expert local advice. We are here to help 303-779-0591~ Ray (@MortgageMaestro)