Kathy A. Torline-Nordstrom
Cherry Creek Properties, LLC
Serving Colorado Springs
FHA loan changes
Effective January 1st 2014 the maximum FHA loan limits in El Paso County will decrease from $325,000 to 271,050. If a buyer purchases a home for $280,850 and puts down the minimum downpayment of 3.5%, they will be within the maximum FHA loan limits . According to one of the press releases I read, there are 650 counties that are going to be receiving lower FHA loan limits as of January 1st.
It’s also important to note that the maximum limit varies in every state on a county by county basis. As an example, in Douglas County, which includes homes in Castle Rock and Larkspur, the maximum rate is $391,000. In Elbert county, which includes portions of Black Forest, the maximum rate is also $391,000.
According to a conversation I had with a lender I use, if a buyer is already under contract and has a FHA case number assigned, they will still be able to qualify for the higher FHA loan limit currently in affect. If you have any questions, contact your lender. If you would like some names of some lenders to talk with, let me know, and I’ll email you a list.
FHA loans are used by many buyers, partially because they require a loan down payment from the buyer. In November and October 2013 FHA loans were used by 12% of the buyer to purchase homes in the Colorado Springs area.
I’m not sure how I think this will affect the Colorado Springs housing market in 2014; as there are definitely other loan options available for buyers who only have a small down payment. Time will tell.