If you’re planning to buy a home in Colorado, understanding the conforming loan limits in Colorado 2025 is crucial. These limits determine the maximum amount you can borrow for a mortgage without having to deal with higher interest rates or stricter terms.
Conforming loan limits are set by the Federal Housing Finance Agency (FHFA). These limits define the maximum loan amount that Fannie Mae and Freddie Mac will accept. In 2025, the conforming loan limit for Denver and most of Colorado is $833,750. In some high-cost areas like Boulder, the limit can go up to $862,500. If you want to borrow more than these amounts, you’ll need a jumbo loan.
Jumbo loans are mortgages that exceed the conforming loan limits. These loans are typically used to buy more expensive homes. Since jumbo loans are not backed by Fannie Mae or Freddie Mac, they usually come with higher interest rates and stricter requirements. For example, you’ll likely need a higher credit score and a larger down payment, often 20% or more.
If you can’t make a large enough down payment to stay under the conforming limit, a jumbo loan might be your only option for buying a more expensive home.
Why Use a Jumbo Loan in Colorado?You might need a jumbo loan if you want to buy a home that costs more than the conforming loan limit in your area. For instance, if you’re buying a $900,000 home in Denver in 2025, the conforming loan limit is $833,750. To finance the remaining $66,250, you would need a jumbo loan. Some buyers may not have enough savings for a large down payment, making jumbo loans a good choice.
The 2025 conforming loan limits in Colorado vary by county. Here’s a breakdown of the new limits for Colorado’s major counties:
As you can see, conforming loan limits in Colorado 2025 vary based on the county. For example, Summit County has a much higher limit at $1,067,200 because it’s a high-cost area.
Conforming loan limits matter because they determine how much you can borrow with better interest rates and easier terms. If your loan exceeds the conforming limit, it becomes a jumbo loan. Jumbo loans typically have higher interest rates and stricter requirements, which makes them more expensive over time.
Staying under the conforming loan limit can save you money on interest. For example, in the Denver metro area, staying under the $833,750 limit means you avoid the higher costs of a jumbo loan, which can help you afford a home more easily.
To qualify for a conforming loan, you’ll need to meet certain requirements. These include having a good credit score, a manageable debt-to-income ratio, and enough income to afford the mortgage. If your home’s purchase price is under the conforming loan limit in your county, it’s easier to qualify for a conforming loan than for a jumbo loan. However, if your home costs more than the limit, you may need to consider a jumbo loan.
Understanding the conforming loan limits in Colorado 2025 is key to securing the right mortgage for your new home. If your loan is below the limit, you can benefit from lower rates and easier terms. However, if you need to borrow more than the limit, a jumbo loan may be necessary. Make sure to consult with a mortgage lender to explore your options and find the best loan for your needs.
Brett is a real estate investor in Denver, Colorado and has been working in real estate for over 20 years. He grew up in Aurora, Colorado and earned his MBA from the University of Denver. Besides flipping houses, Brett loves spending time with his wife Stacy and two daughters Katie and Ellie. In his free time he loves playing golf, skiing and giving back to his community. He owns New Era Home Buyers in Denver, CO.
