The new year is right around the corner, bringing with it some big changes for Indigo Mortgage Colorado and mortgage loans in general. In specific, these changes are concerning conventional mortgages and VA loans.
Conventional mortgages are more of a traditional type of loan. Beginning January 1, 2020, conventional loan limits will increase from $484,150 to $510,400. This is great for borrowers as they will get the benefit of the conventional loan rates and programs without the higher rate that goes along with a jumbo loan, the name for mortgages at that level. This is especially good news for borrowers looking in the higher price range.
VA loans are those specific to Veterans. The biggest changes in mortgage lending in 2020 will be for VA loans. Starting January 1st, no VA loan will be classified as a jumbo loan. When it comes to jumbo loans, there is no down payment required no matter the loan amount. This is a huge benefit for Veterans. Another change for VA loans will be an increase in funding fees. First-time use will increase from 2.15% to 2.3%, and subsequent use will increase from 3.3% to 3.6%. If the Veteran receives 10% or more in disability payments, the funding fees are waived.
As you can see, the new year is bringing many changes to the world of mortgage loans. For more information on what is to come in 2020 or for assistance with your Colorado home loan, reach out to the Indigo Mortgage Colorado team! We are always here to help.