FHA Loan Requirements, Limits and Approval Tips
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2023 FHA Loan Limits in Colorado

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Loans backed by the Federal Housing Administration (FHA) offer lower credit score and down payment requirements than conventional mortgages. However, you won’t be able to borrow as much with an FHA loan due to FHA loan limits. To qualify for an FHA loan on a single-family home purchase in Colorado, you can borrow up to $472,030 in most counties, but that limit increases to $1,089,300 in the high-cost counties of Garfield and Pitkin.

Colorado FHA loan limits by county

County nameOne unitTwo unitThree unitFour unitMedian sale price
ADAMS$787,750$1,008,450$1,219,000$1,514,950$685,000
ALAMOSA$472,030$604,400$730,525$907,900$220,000
ARAPAHOE$787,750$1,008,450$1,219,000$1,514,950$685,000
ARCHULETA$472,030$604,400$730,525$907,900$225,000
BACA$472,030$604,400$730,525$907,900$70,000
BENT$472,030$604,400$730,525$907,900$103,000
BOULDER$856,750$1,096,800$1,325,800$1,647,650$745,000
BROOMFIELD$787,750$1,008,450$1,219,000$1,514,950$685,000
CHAFFEE$600,300$768,500$928,950$1,154,450$522,000
CHEYENNE$472,030$604,400$730,525$907,900$97,000
CLEAR CREEK$787,750$1,008,450$1,219,000$1,514,950$685,000
CONEJOS$472,030$604,400$730,525$907,900$125,000
COSTILLA$472,030$604,400$730,525$907,900$82,000
CROWLEY$472,030$604,400$730,525$907,900$68,000
CUSTER$472,030$604,400$730,525$907,900$250,000
DELTA$472,030$604,400$730,525$907,900$285,000
DENVER$787,750$1,008,450$1,219,000$1,514,950$685,000
DOLORES$472,030$604,400$730,525$907,900$200,000
DOUGLAS$787,750$1,008,450$1,219,000$1,514,950$685,000
EAGLE$1,075,250$1,376,550$1,663,900$2,067,850$935,000
EL PASO$517,500$662,500$800,800$995,200$450,000
ELBERT$787,750$1,008,450$1,219,000$1,514,950$685,000
FREMONT$472,030$604,400$730,525$907,900$286,000
GARFIELD$1,089,300$1,394,775$1,685,850$2,095,200$825,000
GILPIN$787,750$1,008,450$1,219,000$1,514,950$685,000
GRAND$669,300$856,800$1,035,700$1,287,150$582,000
GUNNISON$519,800$665,450$804,350$999,600$452,000
HINSDALE$472,030$604,400$730,525$907,900$331,000
HUERFANO$472,030$604,400$730,525$907,900$165,000
JACKSON$472,030$604,400$730,525$907,900$203,000
JEFFERSON$787,750$1,008,450$1,219,000$1,514,950$685,000
KIOWA$472,030$604,400$730,525$907,900$104,000
KIT CARSON$472,030$604,400$730,525$907,900$193,000
LA PLATA$596,850$764,050$923,600$1,147,800$519,000
LAKE$472,030$604,400$730,525$907,900$355,000
LARIMER$614,100$786,150$950,300$1,181,000$534,000
LAS ANIMAS$472,030$604,400$730,525$907,900$179,000
LINCOLN$472,030$604,400$730,525$907,900$165,000
LOGAN$472,030$604,400$730,525$907,900$197,000
MESA$472,030$604,400$730,525$907,900$355,000
MINERAL$472,030$604,400$730,525$907,900$224,000
MOFFAT$472,030$604,400$730,525$907,900$225,000
MONTEZUMA$472,030$604,400$730,525$907,900$285,000
MONTROSE$472,030$604,400$730,525$907,900$400,000
MORGAN$472,030$604,400$730,525$907,900$305,000
OTERO$472,030$604,400$730,525$907,900$145,000
OURAY$472,030$604,400$730,525$907,900$400,000
PARK$787,750$1,008,450$1,219,000$1,514,950$685,000
PHILLIPS$472,030$604,400$730,525$907,900$180,000
PITKIN$1,089,300$1,394,775$1,685,850$2,095,200$825,000
PROWERS$472,030$604,400$730,525$907,900$163,000
PUEBLO$472,030$604,400$730,525$907,900$270,000
RIO BLANCO$472,030$604,400$730,525$907,900$177,000
RIO GRANDE$472,030$604,400$730,525$907,900$170,000
ROUTT$845,250$1,082,100$1,308,000$1,625,500$735,000
SAGUACHE$472,030$604,400$730,525$907,900$165,000
SAN JUAN$506,000$647,750$783,000$973,100$440,000
SAN MIGUEL$1,045,350$1,338,250$1,617,650$2,010,350$750,000
SEDGWICK$472,030$604,400$730,525$907,900$105,000
SUMMIT$953,350$1,220,450$1,475,250$1,833,400$829,000
TELLER$517,500$662,500$800,800$995,200$450,000
WASHINGTON$472,030$604,400$730,525$907,900$172,000
WELD$555,450$711,050$859,500$1,068,200$483,000
YUMA$472,030$604,400$730,525$907,900$170,000

How are FHA loan limits determined?

Each year FHA loan limits may change based on a percentage of the conforming loan limits set by the Federal Housing Finance Agency (FHFA) for conventional loans. The Federal Housing Finance Agency (FHFA) analyzes the data and sets the conforming loan limit, which the U.S. Department of Housing and Urban Development (HUD) then uses to calculate FHA loan limits.

The FHA loan limit ranges from 65% to 150% of the conforming loan limit. The lowest limit is called the FHA “floor” and applies to most of the counties in the country, while the FHA “ceiling” only applies to high-cost areas.

How to qualify for an FHA loan in Colorado

With median home prices at $685,00 or higher in 17 Colorado counties, the higher limits give borrowers with spotty credit a chance at buying more expensive homes than they would be able to with stricter conventional loan guidelines.

Besides borrowing under the loan limit, here are other FHA loan requirements you need.

  • Down payment and credit scores. If you have a 580 credit score or higher, you could qualify to make only a 3.5% down payment on your FHA loan. You may be able to secure an FHA loan with a 10% down payment. You can check your credit score online.
  • Debt-to-income (DTI) ratio. Your debt-to-income ratio measures your total debt compared to your income. Your DTI ratio generally needs to be less than 43%, although lenders may make exceptions for buyers with higher credit scores or cash reserves.
  • Mortgage insurance: With a FHA loan, you must pay two types of mortgage insurance: the upfront mortgage insurance premium (UFMIP) and annual mortgage insurance premium (MIP). The upfront premium costs 1.75% of your loan amount and is rolled into your mortgage. The annual premium ranges between 0.45% and 1.05% and is divided into 12 monthly installments and added to your monthly mortgage payment.
  • Home appraisal: FHA loans require a home appraisal for all purchase mortgages.
  • Occupancy. FHA guidelines require that you live in the home financed with an FHA loan for at least 12 months.

Buying a multifamily property with an FHA loan

FHA loans allow you to buy a multifamily house with up to four separate living spaces as long as you’re living in one of the units. The same FHA requirements apply, including having a 580 credit score to make the minimum 3.5% down payment. One added perk: You may be able to use the income on the other rented units to qualify.

FHA lenders in Colorado

Lender nameLT ratingMinimum FHA credit score
Churchill Mortgage3 stars620
PenFed Mortgage3 stars620
Flagstar Mortgage4 stars580
Guild Mortgage3 stars540
Rocket Mortgage5 stars580

 

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