2018 Mortgage/Lending Update

The Federal Housing Financing Authority has announced an increase to the limits for conventional, conforming loans have been increased.  The maximum amount of a loan is dependent upon the county in which you are seeking to buy property, so if you’re not interested in Weld, Broomfield, or Boulder counties in Colorado, then you’ll need to follow this link for the full pdf table.  The FHFA has a set maximum loan amounts for conventional conforming loans as follows:

  • Boulder County         $578,450
  • Broomfield County   $529,000
  • Weld County              $453,100

An increase in the loan limits is good for both buyers and sellers.  Home prices in Colorado have been increasing and raising the loan limits will give buyers more purchasing options.  Likewise, sellers benefit from an increase in the number of buyers that are able to realistically consider purchasing their property. 3 dollars

Another important change to borrowing process, is an increase in the debt to income ratio that went into effect in the second half of 2017.  The maximum allowable debt ratio increased from 44% to 50%.  According to at least one industry professional, this has resulted in about a 10% increase in the number of loans being approved and transactions closing.

Finally, there will be a change to the loan application format (ULA 1003) for the first time in 20+ years.  The form is increasing from 4-5 pages to about 8-9 pages in length.  The increase is due to a requirement that borrowers provide additional demographic information.  Once implemented (date uncertain), it’ll probably feel more invasive in terms of the amount of information that borrowers must provide.  The changes were made to protect borrowers from discriminatory lending practices.

A New Chapter – Associate Broker with RE/MAX Momentum

I am pleased to announce that I have joined the real estate professionals at REMAX Momentum as an Associate Broker. REMAX Momentum has four offices in Colorado: Brighton (Prairie Center), Denver (Stapleton), Westminster (Orchard Town Center), and Frederick (opening soon).  Initially, I intend to work from the Westminster (Orchard Town Center) office, but will certainly spend some time at the other offices too.   I have a wide array of experience, education, and training that will enable me to best serve residential sellers and buyers up and down the Colorado front range.

I was born and raised in Kearney, Nebraska. After high school, I attended the University of Nebraska at Lincoln where I obtained a bachelor’s degree in political science while playing football for the Huskers. Not surprisingly, I am passionate about Husker football. I’m also a lifelong Denver Broncos fan. After college, I attended Northern Illinois University to pursue a Master’s Degree in Public Administration. Upon receiving my MPA degree, I worked as a member of a three-person management team in the city manager’s office in Wheaton, Illinois. In that capacity, I gained valuable experience working in local government functions including building & code enforcement, planning & zoning, and engineering just to name a few. Several years into my city management career, I decided to pursue a law degree at DePaul University. I graduated law school magna cum laude, was a member of DePaul Law Review, and was elected to the Order of the Coif. After passing the bar exam, I worked as a civil litigation attorney on complex cases for clients from all over the United States. I was involved in many high stakes, multi-million dollar trials, mediations, negotiations, and settlements.

Recently, our family made the decision to relocate to Colorado. It was a natural choice, as my wife, Ann, is a Longmont native who attended Longmont High School. We were married in Longmont and we have deep family ties to the area.  We have four children attending three different schools in Erie and my wife works at her father’s dental office in Longmont. We’ve been thrilled with decision to relocate to Colorful Colorado. I look forward to working with buyers and sellers to help them meet their real estate goals.

I can be reached by email at dave.mahalek@remax.net or by phone at (303) 946-7907. Follow me on twitter @COagentDave.
Dave Mahalek
RE/MAX Momentum
(303) 946-7907