Last updated on January 5th, 2018 at 12:10 am
Mortgage loan limits for Denver – Aurora – Lakewood in Colorado went up in 2017 largely in response to rapidly rising home prices. This is probably due to Denver having some of the most competitive neighborhoods in the U.S to buy a home. FHA, VA and conventional loan types will have new loan limits.
In 2017, the mortgage loan limit in the metro-Denver area for each loan type mentioned above will increase to $493,350 from $458,850 for a single-family home. Two- to Four-unit properties have higher limits as well which is shown below.
Here are the higher 2017 mortgage loan limits for Adams, Arapahoe, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, Park County, Colorado:
One-unit property: $493,350
Two-unit property: $631,550
Three-unit property: $763,450
Four-unit property: $947,750
In the above description, a “one-unit” property represents a single-family home. The remaining three amounts are the limits for multifamily residential properties like duplexes, triplexes, and quadplexes.
Threshold for Jumbo Loans Has Also Increased
While it is certainly feasible to get a loan above and beyond the Denver-metro area’s loan limit for a multi-million dollar luxury home, that type of financing will fall into the “jumbo” mortgage category. Fortunately, buyers may still have low down payment options depending on their credit score and income.
The Effect of Substantial Home-Price Appreciation
Residential loan limits are reviewed each year by Federal housing officials to examine how their relationship to local home prices. When home prices rise significantly year over year, loan limits are typically lifted to accommodate borrowers.
According to the economic research team at Zillow, the median home price for the Denver metropolitan area went up by 9.7% in 2016, reaching $369,000.
As a result of these trends, Denver County mortgage loan limits will rise by more than $30,000 respectively in 2017. Of importance is the fact that, Boulder county, just 30 miles Northwest, increased by more than $50,000 up to $529,000 from $474, 950.
Will Demand Among Buyers Continue?
Home prices in the area most likely aren’t finished going up. According to a number of projections, home values in the Denver area will persist their gradual ascent in 2017.
So while the higher Denver area & Boulder Counties mortgage loan limits are a sigh of relief for home buyers, the market remains competitive. You could wind up paying more for a house, the longer you wait. Furthermore, with the consensus belief that the Federal Reserve will raise interest rates a couple times this year, the case for buying sooner instead of later makes more sense.
