Colorado Horse Property Loan Limits

We are here to tell you that there have been some changes to the loan limits on Colorado horse property loans. These changes could really benefit you. The Federal Housing Finance Agency (or FHFA) announced the maximum conforming loan limits. These limits are for mortgages from Fannie Mae and Freddie Mac in 2019. Fannie Mae and Freddie Mac buy mortgages from lenders. They either hold these mortgages in their portfolios or package the loans into mortgage-backed securities (MBS) that may be sold. Lenders use the cash raised by selling mortgages to the Enterprises to engage in further lending.

In most of the U.S., the 2019 maximum conforming limit for horse property loans will be over $484,000. The Housing and Economic Recovery Act (HERA) requires that the baseline conforming loan limit be adjusted each year for Fannie Mae and Freddie Mac. This is to mirror the difference in the average U.S. home price. According to FHFA’s seasonally adjusted, expanded-data HPI, house prices increased by nearly 7%, between the third quarters of 2017 and 2018. The baseline maximum conforming loan limit in 2019 will increase by the same percentage.

Therefore, areas in which 115% of the local median home value exceeds the baseline conforming loan limit, the maximum loan limit will be higher than the baseline loan limit.  Median home values generally increased in high-cost areas in 2018, driving up the maximum loan limits in many areas. So, the new ceiling loan limit for one-unit properties in most high-cost areas will be $726,525—or 150 percent of $484,350. For more information on how this can benefit you, contact at horse-person realtor today at Colorado Horse Property. For more details Colorado horse property loan, check out our Real Estate Resources page.

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