2015 Colorado Conforming Loan Limits

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Mortgage and Lending with Home Loans by Sean Young - New American Funding NMLS: 191647

2015 Colorado Conforming Loan Limits

2015 Colorado Conforming Loan Limits

Regular conforming loan limits for 2015 are unchanged from 2014.

However, high-cost area loan limits in 46 counties across the US did increase. Colorado had 11 county increases, they are marked in yellow in the graph below.

2015_Colorado_Conforming_County_Loan_Limits_001

Colorado counties that were increased from 2014 to 2015.

2015_Colorado_High_Balance_Loan_Amounts

 

Even though some counties did increase the 1-unit loan limit, the max loan for any conforming loan is $417,000.

Any amount over $417,000 up to the max county high-cost loan limit is considered a High Balance conforming loan.

Any amount over the High Balance limit is considered Jumbo financing.

What Loans Are Covered Under Conforming?

All conventional loans by way of Fannie Mae and Freddie Mac have to stay within these loan limits. In addition VA also follows these loan amounts. Even though VA does not have a maximum loan limit you are still required to pay 25% of the difference between the conforming loan limit and the purchase price.

Who Sets The Conforming Loan Limits and How Do They Determine What They Will Be?

The Housing and Economic Recovery Act of 2008 (HERA) created a formula to determine what the max loan limit should be for each county. Each year the loan limits are based on the median home prices from October to October reported by the Federal Housing Administration (FHFA). By law Fannie Mae and Freddie Mac cannot exceed the loan limits.

What is a High Balance Conforming Loan?

Some counties have higher median home prices that are considered high-cost areas. Through various legislative acts FHFA is able to increase loan limits in certain high-cost areas around the United States. Basically, it just means that the loan amount exceeds the max conforming loan limit of $417,000 but is still below the high cost loan limit for that county. Keep in mind that you may have a slightly higher interest rate with High Balance loan amounts.

What If My Loan Balance is Over The Conforming or High Balance Loan Amount? 

If your loan balance is over the loan limit for that particular county your loan is considered a non-conforming loan or more commonly known as a Jumbo loan. With a jumbo loan you will have a different set of qualifying conditions you will need to meet. For instance a larger minimum down payment, interest rate may be higher, credit score requirements are different and reserve requirements are different. The main reason is that jumbo loans are a higher risk to lenders and banks, so they require a bit more to reduce their lending risk.

2015 Nationwide Conforming Loan Limits

2015  Colorado VA County Loan Limits

2015  Colorado FHA County Loan Limits

Please call or email with questions about conforming loan amounts or programs.

Want to get pre-approved for a Colorado conforming loan, Click here to get started. 

Posted by

Sean Young
Mortgage Loan Officer

Cell: 303.521.7169

www.mylendersean.com

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NMLS: 191647  / LMB: 100013240

MyLenderSean.comFirstCal Colorado Mortgage

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