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Denver Conforming Loan Limits Increased to $596,850 in 2021

Sammamish Mortgage
December 10, 2019
Last updated:
February 26, 2021
In This Article

Summary: Conforming loan limits in Denver have increased for 2021 as a result of higher home prices. In this article, we’ll discuss what these numbers are and how that will affect the homebuying process.

Over the past year, home prices in the Denver metro area have increased quite a bit. As such, conforming loan limits will be increased for 2021, according to federal housing officials.

For all cities within Adams, Arapahoe, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park counties, the conforming loan limit will increase to $596,850 in 2021 for single-family properties. There are higher limits for multi-family properties, as noted in the chart below.

County Name 1-Unit 2-Units 3-Units 4-Units
Adams $596,850 $764,050 $923,600 $1,147,800
Arapahoe $596,850 $764,050 $923,600 $1,147,800
Broomfield $596,850 $764,050 $923,600 $1,147,800
Clear Creek $596,850 $764,050 $923,600 $1,147,800
Denver $596,850 $764,050 $923,600 $1,147,800
Douglas $596,850 $764,050 $923,600 $1,147,800
Elbert $596,850 $764,050 $923,600 $1,147,800
Gilpin $596,850 $764,050 $923,600 $1,147,800
Jefferson $596,850 $764,050 $923,600 $1,147,800
Park $596,850 $764,050 $923,600 $1,147,800

Denver Conforming Loan Limits Will Rise For 2021

Two government-sponsored enterprises (GSEs) purchase loans from mortgage lenders: Fannie Mae and Freddie Mac.

Conforming loans are those that meet the size requirements used by Freddie Mac and Fannie Mae. If these size requirements are exceeded, the loans are considered to be “jumbo loans.”

Borrowers who need to take out a jumbo loan will likely have to meet stricter loan requirements because of the higher loan amount borrowed.

In 2021, conforming loan limits – which is the threshold between conforming and jumbo loans – in Denver will rise thanks to an increase in home values. For the Denver metro area, the conforming loan limit for a single-family property in 2021 a will go up to $596,850, from 2020’s loan limit of $575,000. That’s an increase of $21,850 from the 2020 loan limit.

These caps are generally consistent across all metro areas. In the case of the Denver metro area,  Adams, Arapahoe, Broomfield, Clear Creek, Denver, Douglas, Elbert, Gilpin, Jefferson, and Park counties all have the same conforming loan limits.

Beyond the Denver metro area, the 2021 loan limit for the majority of other counties across the state of Denver will go up to $596,850 next year.

Please note: Qualified borrowers with sufficient income are typically eligible to borrow more than the conforming loan limit for their county. This would be considered a “jumbo” mortgage scenario.

Live Denver Mortgage Rates Jun, 13, Sun, 2021

Higher Home Prices = Higher Mortgage Amounts

The increase in Denver’s 2021 conforming loan limits comes as a result of an increase in property values in 2020. Federal housing officials review these loan limits every year relative to property values. If the increases in home prices are substantial within a calendar year, federal housing officials will respond appropriately by increasing loan limits. This is what happened over the course of 2020.

Having said that, Denver isn’t the only center that will see an increase in conforming loan limits in 2021. In fact, the majority of counties across the US will be boosted next year as a result of rising home values.

According to a recent press release from the Federal Housing Finance Agency (FHFA):

“As a result of generally rising home values, the increase in the baseline loan limit, and the increase in the ceiling loan limit, the maximum conforming loan limit will be higher in 2021 in all but 18 counties or county equivalents in the U.S”

The median home value in Denver is now $474,500, according to Zillow. And even though prices in the area have leveled off somewhat, they are still higher than they were last year. In turn, loan limits in Denver will be increased for 2021.

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