Good news for Colorado homebuyers! The private corporations chartered by Congress to provide stability and affordability to the mortgage market, Fannie Mae (the Federal National Mortgage Association) and Freddie Mac (Federal Home Loan Mortgage Corporation) have raised the maximum loan limit from $548,000 to $625,000.
This means a borrower can now take a mortgage up to $625,000 and stay within the conforming loan limit. Prior to this announcement, any loan over $548,000 was considered a Jumbo loan which carried a higher interest rate than a conforming mortgage.
This a great news as now home buyers can take a much higher loan amount and still get a great interest rate. For home owners, they can now also refinance out of a Jumbo into a conforming loan amount if they were above the old loan limit.
Keep in mind this only applies to conventional loans at this time. VA and FHA have not announced that they will raise their limits, however they both have been close behind in the recent past and may likely be raising their loan limits as well.
This again is great news as Fannie Mae and Freddie Mac have accommodated the rapid increases in the price of homes and are trying to keep up with consumer demands. Again the new conventional mortgage loan limit is now $625,000. If we can help with a new mortgage loan or a refinance, call our team at Indigo Mortgage Colorado!