FHA Loan Limits in Pueblo to Increase in 2018
There is no doubt that home prices have been rising steadily in the Pueblo real estate market. On Nov 28, 2017 the Federal Housing Finance Agency, the Federal Housing Administration announced it will increase its loan limits in most areas of the country in 2018. The FHFA limits are for loans eligible or guaranteed by Fannie Mae and Freddie Mac.
In Pueblo in 2017, if you were to purchase a home with FHA backed financing you were only allowed to borrow up to $275,665. In 2018 that loan limit will increase to $294,515.
Other loan limits increases are 2 family dwellings, from $352,950 in 2017 to $377,075, three family dwellings from $426,625 in 2017 to $455,800 in 2018, four family dwellings from $530,150 in 2017 to $566,425 in 2018. According to the FHA, in 2016 the average home price in Pueblo was $149,000 which in 2017 will increase to $155,000. That represents an approximate increase in home prices in Pueblo County of 6%. That’s roughly equivalent to the home price appreciation I am seeing when I analyze our home sales in the Pueblo MLS.
In layman’s terms. When you purchase a home there is essentially 4 ways to purchase; cash, a conventional loan, an FHA backed loan, or a VA (Veterans) loan. Many loans in Pueblo County, roughly a third of all homes are purchased with FHA financing. This means that if you were to purchase a home in Pueblo County in 2017, the most home you could qualify for was the $275,665 figure. In 2018, if you are purchasing a home with FHA financing, you’ll be able to purchase a home up to $294,515.
Tagged: Down Payment Assistance in Pueblo, FHA Financing, Home Buying, Pueblo CO First Time Homebuyers