Colorado Mortgages | Jumbo Mortgage Rates | Conforming Loan Limits

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What is the Conforming Loan Limit for
Colorado Mortgages?

2009 Update - With the passage of the Housing and Economic Recovery Act of 2008, new Colorado Mortgage loan limits have been established for 2009. Please refer to the updated chart below.

*****************2008 Information *******************

With the passage of the Economic Stimulus Act of 2008, the conforming loan limit has been temporarily raised for loans closed from now until 12-31-2008. To view the new temporary Conforming Loan limits, please click here otherwise to see the standard Conforming Loan limits, please click here.

The Economic Stimulus Act allows Fannie Mae & Freddie Mac (Government Sponsored Entities or GSE's) to purchase loans in excess of the standard conforming loan limit for certain high cost geographical areas.

Fannie & Freddie are referred to as "agencies" and Colorado Mortgages underwritten to agency guidelines are considered "conforming." Lenders prefer conforming or agency loans because they are more or less guaranteed that they can be sold on the secondary market, meaning the lender will always have an outlet to free up capital in order to lend new money.

By allowing the GSE's to purchase these bigger loans, it effectively creates a market for lenders to sell a new product, i.e. Jumbo Mortgages that now conform to agency guidelines.

Critics argue that increasing the Colorado Mortgage conforming loan limit will allow the GSE's to take on additional risk in an already shaky financial market. However, the requirements for borrowers who may qualify for this temporary increase are designed to minimize the risk by requiring full documentation of income, no stated income will be allowed. Further restrictions may apply to 2nd homes and investment properties.

Proponents believe the move will help stimulate the economy by providing an outlet for borrowers currently stuck at Jumbo Mortgage rates and allowing more borrowers to afford homes in high cost areas by offering them a lower interest rate. However, interest rates for the "Jumbo Conforming" or "Agency Jumbo" loans are expected to be higher than standard conforming rates but lower than standard Jumbo Mortgage rates. So the true benefit to the borrower and thus the economy, is yet to be determined.

For Colorado Mortgages at least, the impact appears to be minimal. Not only are few counties affected, but lenders will likely impose significant pricing adjustments for "Jumbo Conforming" loans and in the end, borrowers may not benefit that much. Some states such as California and New York, may realize more of a benefit due to the larger number of homes that will be affected, but again, the rate adjustments imposed by the lenders will minimize the benefit to the borrower.

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2009 Update
- Jumbo Conforming mortgage rates can be equal to standard Conforming rates, but in some scenarios they may be higher. Ask for a free quote to find out more details.

To request a quote for a "Jumbo Conforming" or "Agency Jumbo" mortgage please click here. Be sure to mention that the subject property is located in one of the qualifying counties.

For Colorado Mortgages, the following counties have temporary conforming loan limits in excess of the standard $417,000 for single family homes. The following table applies for the year 2009:

County
Metropolitan
Designation
2009 Temporary
Conforming Loan Limit
Eagle
Edwards (micro)
$625,500
Hinsdale
non-metro
$423,200
Lake
Edwards (micro)
$625,500
Ouray
non-metro
$419,750
Pitkin
non-metro
$625,500
Routt
non-metro
$625,500
San Miguel
non-metro
$625,500
Summit
Silverthorne (micro)
$625,500

NOTE: Not all zip codes within the above counties are eligible.

All other Colorado counties remain at $417,000 for single family residences. Multi unit houses are allowed even higher loan amounts. Please call us for information regarding the Colorado Mortgage conforming loan limits for multi unit housing.

For states outside of Colorado, please call us to determine if your county has been affected by the temporary increase in the conforming loan limit.

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