The Federal Housing Finance Agency (FHFA) announced that conforming mortgage loan limits for 2013 shall remain unchanged from the previous year.
Explanation of a "Conforming Loan Limit"
Loans that are made to individuals are sold on what is known as the "secondary market." It is common practice for a local lender to sell a loan, that is why new homeowners will end up sending there mortgage payment to a different mortgage company than the original company that gave them the loan.
When mortgages are sold, they must meet certain guidelines set forth by Fannie Mae and Freddie Mac. These entitles set the "standard" for what they will buy and what they won't. The Standard is known as a "conforming mortgage." Conforming in that is fits Fannie/Freddie guidelines.
The size of the loan is a conforming trait. In Metro Denver this is same all over. Colorado does have six "high cost areas" where borrowers can exceed the conforming limit. Consult the chart below to see the Conforming loan limits for Colorado in 2013.
It is possible to borrow more money if your home exceeds the conforming price. These loans are referred to as "Jumbo Loans." Let's leave this description for another blog post!
If you are a future home buyer in the Metro Denver area who has questions about the home buying process, please feel free to give me a call. I offer a free buyer consultation to discuss your questions and concerns. I welcome your call.