Mar 12 2008
New FHA Mortgage Limits
There are new loan limits for FHA as part of the economic stimulus package offered by Washington. This is big news because FHA is a 3% down payment loan and at this point they are not really changing down payment requirements due to the declining market. The limits in the front range will increase from $308,370 to $406,250. The limits are different by cities and counties but the $406,250 represents most of the front range. Boulder is at $460,00 and Eagle County is $729,750.
There is a big “however” though, which is just because the government announced it does not mean the investors and mortgage companies are prepared to offer it. We anticipate that we will have investor support by next week but we also anticipate (rumors from investors themselves) that there will be price hits for the increased loan amounts. In other words it will not be regular FHA pricing it will be increased interest rates.