FHA Raises Loan Limits — Now $596,850 for Metro Area

Not only are mortgage interest rates at historic lows but FHA has increased the amount of government-backed money you can borrow to purchase a home.

Currently, the FHA loan limit in the Denver metro area (except for Boulder) is $575,000, but it increases to $596,850 in 2021. That is the loan limit for one-family homes. You can use an FHA loan to purchase duplexes, triplexes and four-plexes. The new limits for those are $764,050, $923,600 and $1,147,800 respectively.

Those are the loan limits, not the purchase price limits. FHA loans are known for their low down payment requirement, currently 3.5% of the purchase price. The main drawback of FHA loans, however, is that they require mortgage insurance, regardless of how much equity you have.

I’ll have more about this topic in my monthly mortgage column on page 2 of YourHub next week.

Author: Golden Real Estate, Inc.

Golden Real Estate is a prominent member of the Denver/Jefferson County real estate scene. Based in Golden, we service both Denver and Jeffco, representing both buyers and sellers. We're well known for Broker Jim Smith's weekly "Real Estate Today" column published in the Denver and Jeffco editions of the Denver Post's YourHub section each Thursday. The column also appears in several weekly newspapers and is archived at www.JimSmithColumns.com. We have nine agents, all of whom are Realtors and EcoBrokers. Our office is Net Zero Energy since December 2017, and several of us drive electrics cars. Known for our sustainable practices, we accept polystyrene (aka "Styrofoam") for recycling, keeping 200 cubic yards per year out of area landfills.

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