Boulder County is one of the most expensive US metro areas in which to live. Would you believe Boulder County’s higher prices equals a benefit? In regard to mortgage loan limits, it does.
According to IRES MLS stats for the first quarter of 2016, the average home sales price in Boulder is approaching $1 million with the median price at $842,000. Even surrounding communities such as Louisville and Lafayette garner average home sales well over $500,000. Larger home prices mean buyers typically need larger mortgages. The high cost of living and expensive real estate in Boulder County has prompted the Federal Housing Finance Agency (FHFA) to give potential home buyers a higher limit on conforming mortgage loans (Fannie Mae and Freddie Mac). While most of the rest of the country has a loan limit of $417,000, Boulder County buyers can get nearly $475,000 in mortgage financing. This extra limit is crucial to so many qualified real estate purchasers as local real estate prices continue to climb.
Not only can buyers achieve a larger mortgage, they can put less money down for the property. I often work alongside Senior Mortage Advisor Alicia Alpenfels of Premier Mortgage Group. Alicia explains the advantage: “The higher loan limits has made it easier for the $500K buyer to move forward with only 5% down. Prior to this increase you had to put at least 10% down at this purchase price.” For a $500,000 home purchase, that’s a difference of having to come up with $25,0000 versus $50,000, a pretty significant jump.
Boulder County’s loan limit benefits home sellers as well, opening up a larger population of potential buyers. Having nearly $60,000 in additional purchasing power can bring more bids to the table, putting sellers in a power position. The more bids, the more apt they are to have a qualified, strong financial buyer. It works both ways.
For those who purchase a home that requires more than a $474,950 loan, jumbo loans are still available. Those buyers face more stringent requirements such as a higher income and a strong credit score. But for the majority of home buyers who simply want to get into their starter home or the next move up and don’t have unlimited amounts of equity or cash flow, the conventional mortgage loan limits are incredible helpful.
You can start to determine the general amount of home you could afford through my mortgage calculator link. From there we can have you speak to a mortgage lender to explore how much mortgage is available to you. As a Realtor, I have contacts with experienced professionals like Alicia, plus title companies, movers, and anyone else you may require in the move to your next home. Contact me and we can start the process. You could get into your Boulder County home with more financial backing than you think!