Will the Increase in Conforming Loan Limits Benefit Colorado?
President Bush signed the Economic Stimulus package on Wednesday and the impact for Colorado is yet to be determined. At this time it looks like Boulder may be the only area with a median home price high enough to gain an increase from the current $417,000 limit.
1. Loan limits will go up in metropolitan areas with high housing prices. Most experts are estimating that will occur in only 20 of 160 metropolitan areas.
2. The higher loan limits expire at end of the year. With HUD having 30 days to establish where the increase in loan limits will occur, it will be the middle of March before this is set. That will give borrowers about nine months if Fannie Mae and Freddie Mac have a process in place to purchase those loans.
3. The increase in the FHA loan limits may or may not reach our area.
It’s yet to be seen whether or not more borrowers in Colorado will see more of a benefit than the rebate checks. I’ll keep you posted.
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