Denver Conforming Loan Limits Increased to $684,250 in 2022

Published:
December 10, 2019
Last updated:
December 2, 2021
In This Article

Conforming loan limits in Denver have increased for 2022 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 increased for 2022, 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 $684,250 in 2022 for single-family properties. There are higher limits for multi-family properties, as noted in the chart below.

County Name1-Unit2-Units3-Units4-Units
Adams$684,250$875,950$1,058,850$1,315,900
Arapahoe$684,250$875,950$1,058,850$1,315,900
Broomfield$684,250$875,950$1,058,850$1,315,900
Clear Creek$684,250$875,950$1,058,850$1,315,900
Denver$684,250$875,950$1,058,850$1,315,900
Douglas$684,250$875,950$1,058,850$1,315,900
Elbert$684,250$875,950$1,058,850$1,315,900
Gilpin$684,250$875,950$1,058,850$1,315,900
Jefferson$684,250$875,950$1,058,850$1,315,900
Park$684,250$875,950$1,058,850$1,315,900

Denver Conforming Loan Limits Will Rise For 2022

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 2022, conforming loan limits – which is the threshold between conforming and jumbo loans – in Denver increased thanks to an increase in home values. For the Denver metro area, the conforming loan limit for a single-family property in 2022 a rose to $684,250, from 2021’s loan limit of $596,850. That’s an increase of $87,400 from the 2021 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 2022 loan limit for the majority of other counties across the state of Denver rose to $684,250 for 2022.

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.

Check out our mortgage loan limit tool for conventional, FHA, and VA loans.

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Higher Home Prices = Higher Mortgage Amounts

The increase in Denver’s 2022 conforming loan limits comes as a result of an increase in property values in 2021. 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 2021.

Having said that, Denver isn’t the only center that will see an increase in conforming loan limits in 2022. 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):

“The Federal Housing Finance Agency (FHFA) today announced the conforming loan limits (CLLs) for mortgages to be acquired by Fannie Mae and Freddie Mac (the Enterprises) in 2022. In most of the U.S., the 2022 CLL for one-unit properties will be $647,200, an increase of $98,950 from $548,250 in 2021.”

The median home value in Denver is was $571,163 by year-end in 2021, according to Zillow. In turn, loan limits in Denver increased for 2022.

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