The new 2020 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 to $510,400. In certain high-cost locations in CA, CO, NJ, NY, MA, VA, WA, DC, etc, they will have their limits increased from $726,500 to as much as $765,600 (Garfield, Pitkin County, CO).

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.

Among the factors thats increased home prices in Denver is the low inventory. According to the Denver Metro Association of Realtors (DMAR), the tight supply and strong demand should keep the trend of home prices moving up, albeit at a slower pace than 2014-2018. The ability to afford a home will end up being the leading driver into the near future.

Conforming and High Balance limits:
- Denver MSA: $575,000
- El Paso county: $510,400
- Weld county: $510,400
- Boulder county: $644,000

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 $592,700 in the Denver metro and $526,000 in counties with a maximum of $510,400.

High balance loan limits are also going up. In Colorado, the following counties will have increases: Boulder County ($644,000) and Adams, Arapaho, Broomfield, Denver, Douglas, Jefferson counties ($575,000).

What this means for home buyers is they can put down 5-percent and get around the need for jumbo pricing. In Boulder, this helps borrowers purchase or refinance a home up to $677,800; in the other counties with high balance limits of $575,000, it enables them to purchase a home up to $605,200.