If you are looking to buy a new home in Denver, you might want to act quickly. Newly proposed changes would limit the loans that can be insured by the Federal Housing Authority (FHA). If passed, Colorado borrowers would receive a smaller loan than they would currently receive beginning as soon as October 1st.
Nearly every Colorado county would see a drop in FHA loan limits if the proposal is passed. I work in Adams, Arapahoe, Broomfield, Denver, Douglas, and Jefferson counties which all currently have FHA loan limits of $406,250. If the proposal is passed, these limits would drop $38,250 to $368,000. This is a significant amount if you are attempting to purchase a home in Denver.
A couple of other counties in Colorado would be hit even harder. Eagle and Lake Counties’ FHA loan limits would drop from $729,720 to $625,500 for a total of $104,250. Hinsdale County’s loan limit would drop from $557,500 to $427,800 for a total of $129,700.
For Denver buyers on the fence, it is crucial that you take advantage of higher FHA loan limits while you still can. For more information about the proposed limits and current Denver inventory, give me a call at 888-860-1931.
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