FHA Loans: What You Need to Know in 2022
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2022 FHA Loan Limits in Colorado

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Loans backed by the Federal Housing Administration (FHA) don’t have as high of a credit score or down payment requirements as conventional mortgages do. They do have limits on how much you can borrow, depending on the county. To qualify for an FHA loan on a single-family home purchase in Colorado, you need to borrow less than $420,680 in most counties, but that limit increases to $970,800 in Garfield, Pitkin and San Miguel.

Colorado FHA loan limits by county

County nameOne unitTwo unitsThree unitsFour unitsMedian sales price
ADAMS$684,250$875,950$1,058,850$1,315,900$595,000
ALAMOSA$420,680$538,650$651,050$809,150$187,000
ARAPAHOE$684,250$875,950$1,058,850$1,315,900$595,000
ARCHULETA$420,680$538,650$651,050$809,150$275,000
BACA$420,680$538,650$651,050$809,150$51,000
BENT$420,680$538,650$651,050$809,150$128,000
BOULDER$747,500$956,950$1,156,700$1,437,500$650,000
BROOMFIELD$684,250$875,950$1,058,850$1,315,900$595,000
CHAFFEE$461,150$590,350$713,600$886,850$401,000
CHEYENNE$420,680$538,650$651,050$809,150$78,000
CLEAR CREEK$684,250$875,950$1,058,850$1,315,900$595,000
CONEJOS$420,680$538,650$651,050$809,150$106,000
COSTILLA$420,680$538,650$651,050$809,150$49,000
CROWLEY$420,680$538,650$651,050$809,150$97,000
CUSTER$420,680$538,650$651,050$809,150$257,000
DELTA$420,680$538,650$651,050$809,150$250,000
DENVER$684,250$875,950$1,058,850$1,315,900$595,000
DOLORES$420,680$538,650$651,050$809,150$175,000
DOUGLAS$684,250$875,950$1,058,850$1,315,900$595,000
EAGLE$862,500$1,104,150$1,334,700$1,658,700$750,000
EL PASO$460,000$588,850$711,800$884,600$400,000
ELBERT$684,250$875,950$1,058,850$1,315,900$595,000
FREMONT$420,680$538,650$651,050$809,150$240,000
GARFIELD$970,800$1,243,050$1,502,475$1,867,275$745,000
GILPIN$684,250$875,950$1,058,850$1,315,900$595,000
GRAND$534,750$684,550$827,500$1,028,350$465,000
GUNNISON$431,250$552,050$667,350$829,350$375,000
HINSDALE$427,800$547,650$662,000$822,700$287,000
HUERFANO$420,680$538,650$651,050$809,150$155,000
JACKSON$420,680$538,650$651,050$809,150$165,000
JEFFERSON$684,250$875,950$1,058,850$1,315,900$595,000
KIOWA$420,680$538,650$651,050$809,150$88,000
KIT CARSON$420,680$538,650$651,050$809,150$157,000
LA PLATA$494,500$633,050$765,200$950,950$430,000
LAKE$420,680$538,650$651,050$809,150$275,000
LARIMER$522,100$668,400$807,900$1,004,050$454,000
LAS ANIMAS$420,680$538,650$651,050$809,150$130,000
LINCOLN$420,680$538,650$651,050$809,150$162,000
LOGAN$420,680$538,650$651,050$809,150$175,000
MESA$420,680$538,650$651,050$809,150$300,000
MINERAL$420,680$538,650$651,050$809,150$260,000
MOFFAT$420,680$538,650$651,050$809,150$200,000
MONTEZUMA$420,680$538,650$651,050$809,150$237,000
MONTROSE$425,500$544,700$658,450$818,250$290,000
MORGAN$420,680$538,650$651,050$809,150$264,000
OTERO$420,680$538,650$651,050$809,150$105,000
OURAY$425,500$544,700$658,450$818,250$290,000
PARK$684,250$875,950$1,058,850$1,315,900$595,000
PHILLIPS$420,680$538,650$651,050$809,150$172,000
PITKIN$970,800$1,243,050$1,502,475$1,867,275$745,000
PROWERS$420,680$538,650$651,050$809,150$124,000
PUEBLO$420,680$538,650$651,050$809,150$235,000
RIO BLANCO$420,680$538,650$651,050$809,150$219,000
RIO GRANDE$420,680$538,650$651,050$809,150$164,000
ROUTT$678,500$868,600$1,049,950$1,304,850$585,000
SAGUACHE$420,680$538,650$651,050$809,150$175,000
SAN JUAN$420,680$538,650$651,050$809,150$158,000
SAN MIGUEL$970,800$1,243,050$1,502,475$1,867,275$658,000
SEDGWICK$420,680$538,650$651,050$809,150$102,000
SUMMIT$925,750$1,185,150$1,432,550$1,780,300$670,000
TELLER$460,000$588,850$711,800$884,600$400,000
WASHINGTON$420,680$538,650$651,050$809,150$175,000
WELD$483,000$618,300$747,400$928,850$420,000
YUMA$420,680$538,650$651,050$809,150$150,000

How are FHA loan limits determined?

Each year’s loan limits are based on the previous year’s average home sales price in each county. The average national home sales price increased by 18% in 2021, so the 2022 loan limits are also going up. The Federal Housing Finance Agency (FHFA) analyzes the data and sets the conforming loan limit, which, in turn, the U.S. Department of Housing and Urban Development (HUD) 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 it applies to most of the U.S., while the FHA “ceiling” only applies to high-cost areas.

How to qualify for an FHA loan in Colorado

Colorado FHA loans have considerably lower requirements than conventional loans; however, you must still meet minimum requirements. If this is your first time buying a home, you could qualify for further help from Colorado first-time homebuyer programs, which include  homebuyer education courses and down payment assistance.

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

  • A 3.5% down payment: If you have a 580 credit score or higher, you could qualify to make only a 3.5% down payment on your FHA loan. But this amount increases if you have a lower score.
  • A 500-579 credit score or better: If your credit score falls in this range, you may be able to secure an FHA loan if you give a 10% down payment. You can check your credit score online.
  • A debt-to-income (DTI) ratio of 43% or less. Your DTI ratio generally needs to be less than 43% although you may find exceptions.
  • A home appraisal: FHA loans require a home appraisal for all purchase mortgages.
  • Mortgage insurance: You must pay two types of FHA 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.

Buying a multifamily property with an FHA loan

FHA loans allow you to buy not only a single-family home, but 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, such as having a 580 credit score to make the minimum 3.5% down payment.

FHA lenders in Colorado

Here are five highly rated mortgage lenders that operate in Colorado. Click on their names to read a full review.

Lender nameLT ratingMinimum FHA credit score
Lower Mortgage10 / 10580
Rocket Mortgage9.5 / 10580
Better Mortgage9.5 / 10620
AmeriSave Mortgage8 / 10600
PennyMac9/10620

 

 

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