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 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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Buying a Colorado Horse Property
(1) Be prepared. Buying a Colorado horse property will be one of the most significant decisions in your life. Colorado has seen a broad trend in horse property ownership in the last decade with people making a move out west to learn how to care for horses and build their own equine legacies. If you are looking for a horse property in the state of Colorado, contact Colorado Horse Property today. As horse-person realtors, let us be the first to tell you that not all horse properties are equal. Below is a list of things to keep in mind when searching for a horse property. For more information, check out our article What to Look for When Buying A Horse Property.
Things To Look For When Buying A Colorado Horse Property
- You can also ask, how old are the existing horse stalls and buildings on the property?
- What surplus buildings does the property have, such as tack rooms, feed storage, and a grooming stall? Depending on how many horses you have or how many you plan to get, this is important to know.
- Do the buildings have electricity and hot water? You don’t want to buy a property without these necessities.
- What percentage of the acreage is wooded vs. pasture?
- Do you have any problem with flooding or standing waters?
- What work has to do done in the future? Like we said, getting a horse property is a big responsibility and looking ahead a few years with the property should factor into your decisions.
- Is that a bank barn, pole barn or shedrow? Know what you are getting into so that if you need to make repairs or construct your own buildings, then you will know where to start.
- Does the property have proper fencing?
- Are there nearby riding trails or areas on the property?
- What is the composition of the area? Some soils are better than others for keeping horses.
- Also, what are the accesses to vets, farriers, and trailers?
- Look for farm equipment storage and parking.
- Always have a severe weather plan in mind when looking into Colorado horse properties.
- Evaluate the safety of existing horse stables—if the building were constructed years ago, they may need repairs to be safe and/or brought up to code.
- What type of feed and tack stores are nearby?
- The effect any possible zoning laws will have on your plans—not all areas are the same so make sure to bring this up with your horse-person realtor to avoid problems down the road.
- Is there an adequate supply of water is on the property?
- How much acreage you’ll need to accommodate each horse?
- Has the property been adequately maintained over the years?
Buying A Horse Property
Before contacting an agent, there are some things that you can look for that might save you some time. If you want to look into buying a horse property, but don’t know what to look for, this is the article for you! When searching horse property sites like Colorado Horse Property, which boasts over three thousand listings in the state, there are a few things to keep an eye on in prospective horse properties. You will want to know that the property has the appropriate amount of space, including the condition of the barn or stables and the size of the included pastures. You should also look at the property as a whole and consider its overall layout.
What to Look for
The first thing you should do, is figure out how much land you will need before you start looking at properties. This will all depend on how many horses you have, or plan on getting in the future. Colorado Horse Property horse people will recommend two acres for the first horse and one additional acre for each additional horse. If the property already has a barn or horse stables, there are a few things you should look into. You should know the size of the stalls, the strength of the stall partitions, and the design of the hayloft.
When it comes to the pastures on the land, look at the quality of the grass. This may be hard to do when looking at pictures online. If you can’t tell what the grass quality is by the photo, sign up with the website and talk to an agent—it’s free to sign up with Colorado Horse Property and costs nothing to talk to a qualified horse person professional. Also, look at the overall layout. The barn should be located behind the house so that any visitors need to drive past the house to access the horses. For more help, contact Colorado Horse Property today!
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In the dry state of Colorado, it is important to think about fireproofing your home for natural disasters.
In 2012, 4,000+ acres in the Black Forest region near Colorado Springs was burned. This occurred during the biggest wildfire that Colorado has ever seen. Due to a quick response from the local fire departments, the fire was eventually contained. This cost over five hundred families their homes. Nowadays, there are products out there that you can use for fireproofing your home in the event of another wildfire like the one in Black Forest. Barricade II Fire Gel is one of the best out there. Recently, this fire gel has been tested and approved for use in an array of firefighting functions.
Getting your hands on some of this powerful fire-retardant gel is now extremely easy with Aflektos. Aflektos is the leading distributor of Barricade II Fire Gel in the state of Colorado. Aflektos is run by Stephen Tivy, a local that is dedicated to helping his neighbors with fireproofing and fire mitigation. Tivy is passionate about bringing the community together by bringing awareness to Colorado homeowners on how to protect themselves from wildfires. Tivy was living in Black Forest in 2013 during the fire that has left many areas blackened still to this day, therefore he has seen what can happen when homeowners do not prepare for future disasters by fireproofing your home.
Not only does Aflektos sell the Barricade II Fire Gel, but it can also provide you with the equipment to apply it to your home and property. During many wildfires, the flames spread through the crowns of the trees. With Aflektos, you are now able to pump the fire gel up into your trees where the fire spreads to stop embers from catching fire to your home. For horse owners, it is important to know how certain chemicals can potentially harm your animals. You will be glad to know that the products you get from Aflektos are approved by the EPA and will not harm your horses or the plant life on your property.
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Lowering debt is something that every American wants to do.
Here is some important information about lowering debt in Colorado. We all know that horse owners have a lot of financial things to deal with. The last thing you want to worry about is debt when running a dude ranch in Denver. Credit card debt in America is back to levels prior to the recession. The average credit card annual percentage rate, or APR, is just under sixteen percent. This is according to CreditCards.com and the site’s Weekly Credit Card Report, a trusted place to get information from many agents of the real estate business.
Homeowners have an advantage over renters when it comes to conquering debt issues. With a little basic money management, you can take those higher debt rates and replace them with lower debt rates. Credit cards and assets—such as personal cars, boats, motor vehicles, and other personal property—usually have interest rates higher than that of real estate loans.
How can you get a low rate of financing? Did you know that borrowing against your home typically can give you the lowest rate of financing of anything else? An advantage of borrowing against a home is that the interest could be tax deductible. You could refinance your home mortgage to take cash out to retire personal debt as one option. Another way to do this would be to secure a home equity line of credit or HELOC.
Qualified mortgage interest includes acquisition debt. This can only be used to buy or improve a principal residence. Of course, this is only up to one hundred thousand dollars of home equity debt and it can be used for any purpose. We would all certainly like to become debt-free, paying the least amount of interest that you possibly can is a great first step to meeting that goal. Owning a home provides an asset that allows for options not available to renters. Seek professional advice from your friends at Colorado Horse Property.
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Colorado market value is the price of real estate in the state without any outside forces working against it.
If you are selling or buying a horse property in Colorado, then you should be aware of how market value works. This explanation of the Colorado market value is simple enough, but there are certain nuisances that make it more complicated. For example, homeowners could order an appraisal before they put their home on the market. However, they would incur the expense of it themselves. Also, it can’t be used by the buyer or their lender in the home buying process.
Licensed appraisers look at Colorado market value in three ways—The market data, the replacement cost and by income. A part of being an appraiser is determining which of these three ways they will use. The replacement cost looks at what it would cost to rebuild the property. The income way uses a capitalization rate based on the net operating income of a property to determine value. The market data way relies on recent sales of similar properties nearby.
Real estate agents use a similar approach to determine fair market value. They perform a Competitive Market Analysis or CMA. This analysis it looks at recent sales of similar properties, considering properties currently for sale and what homes actually sold. Both appraisals and Competitive Market Analysis reports have a distinct advantage. One is based on the personal opinion of a professional and the other is based on online website estimates using raw data and mathematical formulas.
Though this information is important when selling a home, it is not the “end all, be all” so to speak. Regardless of which method is used, it is just an estimate. Obviously, some estimates are more accurate based on the experience of the person making the estimate. If you need help finding an experienced appraiser that can give you accurate Colorado market value estimates, contact your friends at Colorado Horse Property today.
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Deductibles are essential homeowner tools and here’s why.
Owning your own home is an amazing thing. You have a lot more control on what goes on in your own home. You are building up equity for your future. Owning your own home as a horse owner is even more amazing. You don’t want to be relying on a landlord when it comes to your animals. However, it is nice to know that someone has you covered in case something happens to your property and this is where deductibles come in.
The idea behind insurance is to that the risk of loss and give it to a company, and all you need to do is pay a premium. Most policies have a deductible. These reduce the amount of the claim. For more information, contact Colorado Horse Property for professional help.
Policyholders often consider higher deductibles to lower the premium. Lower deductibles mean less money out of pocket if a loss occurs but higher premiums. Higher deductibles result in lower premiums, but you bear a more significant part of the loss.
Consider that a small fire in a large home that resulted in $2,000 of damage. This is not covered if the policyholder has a one percent deductible. The homeowner can afford to deal with the cost of repairs in exchange for cheaper premiums. That loss would be difficult for the homeowner. A change in the deductible should be considered.
Homes in flood areas with mortgages from federally regulated lenders require flood insurance. Though, each homeowner needs to assess the risk of being able to financially sustain a flood loss on their home.
Reviewing your deductible is essential. Discuss risks with your property insurance agent so that you’re familiar with the amount. Make any changes that would be appropriate before a claim is made. The FEMA website has information and frequently asked questions about flood insurance.
Colorado Home Inventory, like many things in our lives, is in a housing market that fluctuates.
This fluctuation in the Colorado home inventory goes up and down depending on supply and demand. The fluctuation is done with considerations to the area of market and the price range. The NAR, National Association of Realtors, defines a market as balanced when it has a six month supply of homes for sale. The National Association of Realtors is America’s largest trade association. The NAR represents 1.2 million members. These members include NAR’s institutes, societies, and councils. Members are involved in all aspects of the residential and commercial real estate industries. Likewise, if it takes longer than six months to sell, it is thought to be a buyer’s market and less than six months, a seller’s market.
When it comes to looking at the market, the inventory of existing homes has been reducing. This reduction is by approximately 1.5 million houses. This accounts for 10.3% lower than a year ago. According to the Federal Reserve Bank of St. Louis there are 5.7 months’ supply of new homes currently on the market in the United States. Therefore, on average the country is balanced. Inventory has a direct impact on price.
When demand is constant, but inventory is reduced, price tends to increase. This is because the same number of people are trying to buy a smaller than normal number of homes. It is definitely a good think to be able to spot the direction prices will be moving, whether you are buying or selling a home. When prices and mortgage rates rise, buyers might not be able to afford the same price or size of homes. Colorado is a great state to live and raise horses. For more information on how to get a horse property, contact the professionals at Colorado Horse Property.
Lenders and borrowers have a unique relationship when it comes to the home buying process.
For most transactions lenders and borrowers have a formal relationship. However, when the lender and borrower know each other, whether they are family or friends, is an entirely different story. The Internal Revenue Service has specific rules that govern the transaction especially when the parties know each other.
For starters, the loan must be done in a business-like manner. Even though you know one another doesn’t mean that you don’t have to do everything that you would normally do. You are going to want to have a written note specifying the loan amount, interest rate, term and collateral. The Internal Revenue Service requires that the mortgage be a recorded lien to allow the interest deduction.
You may be in a situation in which you have a less than normal interest rate on your mortgage. Though this is a great thing, remember that there are restrictions on this as well. The rate charged in the note is regulated by the minimum applicable federal rate which is published monthly by IRS based on current Treasury securities. You don’t want to make any of these agencies mad, so make sure you follow the guide lines they specific as closely as you possibly can.
The seller must report the interest paid to them along with the name, address and Social Security number on schedule B when the buyer uses the property as their principal residence. If you play your cards right, you may allow the borrower a slightly lower rate without the expenses of a traditional lender while giving the note holder a higher rate than they can earn in available investments.
Your tax professional can guide the transaction whether you’re a buyer or a seller and your real estate professional can help arrange to have the documents drawn and filed. If you are looking for a lender, contact Colorado Horse Property for assistance.
Renting as a horse owner is probably not a good idea.
Do you own your own horse in Colorado but don’t own your home? Do you rent an apartment and keep you beloved, equine family members boarded at a stables twenty miles from your home? There are many reasons why a horse owner should own their own home. Colorado Horse Property has over 3,500 horse property listing and are committed to getting you into the horse property you and your horses deserve. Here are a few problems with renting in general.
It is a sad reality when we are unable to buy our own home, and instead are buying the home of our landlord. Of course I’m talking about renting. Amortized mortgages that a landlord pays sees a reduced principal amount on the loan and it is usually repaid quickly. unbeknownst to the renter, they are retiring their landlord’s mortgage with the rent that they pay to them. It is crazy to think about, but this renter/owner relationship is very real in today’s economic climate.
The problem with renting is that you payment is higher that what home owners are paying for their mortgage payment including taxes and insurance. The experts in the field are saying that we may never again experience the incredibly low mortgage interest rates currently available. When you rent, you do not have the same advantage that homeowners have by using their home as a leveraged investment.
If you are renting, consider looking for loans that could help you buy your own home. Talk to a loan professional to find out exactly what types of loans are available and the specific down payment required. Remember, down payments can be a whole lot less than twenty percent, and therefore very affordable. Contact Colorado Horse Property for a referral to a loan professional near you.
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