The new The 2023 conforming loan limits were announced in late November. For the majority of locations throughout the U.S, conforming loan limits have moved higher from $484,100 in 2019, $510,400 in 2020, $548,250 in 2021, $647,200 in 2022 up to $726,200 this year.
The nation's housing market continues to be strong and the increase in the fannie mae, freddie mac and FHA loan limit demonstrates this: the maximum conforming loan limit will be higher in 2,936 counties. Only 71 did not have an increase.
In certain high-cost locations within CA, CO, NJ, NY, MA, VA, WA, DC, etc., they will have their limits increased between $763,600 up to $1,089,350.
In 2023 Colorado's high counties were increased to as much as $1,075,250 in Eagle, Garfield, Pitkin & Summit counties.
Among the factors thats increased home prices in Denver is the low inventory. According to the Denver Metro Association of Realtors (DMAR), the supply and strong demand has eased as interest rates have slowed the demand more than 2014-2022. The ability to afford a home will end up being the leading driver into the near future.
Conforming and High Balance limits:
- Boulder county: $856,750
- Denver metro counties: $787,750
- El Paso county: $726,200
- Larimer county: $726,200
- Weld county: $726,200
- Eagle county: $1,075,250
- Pitkin county: $948,750
- Summit county: $953,350
- San Miguel county: $862,500
One of the reasons these new limits are important is that it will allow some borrowers to avoid jumbo loan rate pricing – this allows first time buyers to put down the minimum of 3% on purchase prices up to $811,800 in the Denver metro and $748,6,215 in counties that allow a maximum loan of $726,200.
High balance loan limits are also going up. In Colorado, the following counties will have increases: Boulder County ($856,750) and Adams, Arapaho, Broomfield, Denver, Douglas, Jefferson counties ($787,750).
What this means for home buyers who can put down 5 percent or more they can also get around the need for jumbo loan pricing. In Boulder, this helps borrowers purchase a home for sale at $910,000 or up to $1,007,900 with 15 percent down; in the other counties with high balance limits of $787,750 it enables them to purchase a home at $829,000 with 95 LTV financing and $875,000 with ten percent down (90 LTV financing).