Flash!!! The new HUD lending limits have just been increased in La Plata County, Durango Colorado which will have a positive impact on real estate!
These increased lending limits are going to help a large percentage of borrowers, who qualify for the maximum limits. This is a huge savings for borrowers as any loan amount above the conforming lending rate is considered a Jumbo loan, and the Jumbo loan rates are significantly higher. As an example, one interest rate quoted to me today was 6.12% for the conforming rate under the HUD limits for a 30 year fixed mortgage, while the Jumbo rate for a 30 year fixed mortgage was 7.09%. With these new limits, a borrower who has the ability to have the maximum loan amount, and who has a 20% down payment can purchase a home in Durango Colorado with a price of up to approximately $555,000.
Even more impactful is the change in the FHA limits from $337,250 to $443,750. Many more borrowers may qualify with the FHA loans. These loans have some additional flexibility, which allows the borrowers to put a minimum of 3% down, and the down payment may be a gift! FHA does have a 1 1/2 % Mortgage Insurance Premium, which means that there is an additional cost of 1 1/2% of the loan amount, yet this charge may be financed. Many borrowers would choose to use an FHA loan if they are limited in their down payment or if their down payment is coming from family or friends. The new limits are particularly important as most of our housing was more expensive than the limits would allow. Now, a borrower who can qualify for the maximum loan, and that has a 3% down payment can purchase a home with a price up to approximately $457,500.
This should have a major impact on real estate in Durango, and throughout La Plata County, offering buyers many more choices and amenities.
It is another reason to begin your buying process. As we all know, the real estate market here is stronger than most other locations in the country. Never the less, there is not a better time to buy real estate than right now! Take advantage of the opportunities to buy, and start now. Some people are going to wait until everyone else is buying, and then it will be more competitive, and probably, more expensive.
If you would like help in the real estate process, please contact me: Don Ricedorff at The Wells Group Real Estate office, 970-375-7014, e-mail me at don@frontier.net, or visit me on the web at durangorealproperty.com.
