Denver Metro Area FHA Loan Limits in 2015

The Federal Housing Administration's loan program is well suited for borrowers with limited cash saved up for a down payment. That's because it allows home buyers to finance their purchase with a down payment as low as 3.5%.

But there are limits to how much you can borrow when using this program. On this page, you'll find the FHA loan limits for the Denver metro area in 2015. These limits apply to all of Denver County, including the cities of Aurora and Lakewood.

Property Size Loan Limit
One-family $424,350
Two-family $543,250
Three-family $656,650
Four-family $816,050

Reference: A "one-family" property is a regular, single-family home. "Two-family" refers to a duplex-style home with two residents, and so on.

Denver FHA Loan Limits Increased by $33,350 for 2015

The FHA loan limits for Denver were increased from calendar year 2014 to 2015. Last year, the maximum allowable size for a single-family FHA-insured mortgage in Denver County was $391,000. This year, the cap was raised to $424,350 for a one-unit residential property. That's a one-year increase of $33,350.

The limits for this metro area were raised in response to rising home prices. Over the last couple of years, home prices in and around Denver have climbed significantly. In January 2015, Zillow reported a one-year gain of 11.2% in house values for this area. According to Realtor.com, the median list price for this housing market climbed by a whopping 36% from Nov. '14 - Nov. '15. So the maximum loan amounts were raised as well.

The limits used by the Federal Housing Administration (FHA) are based on a percentage of the conforming loan amounts established by the Federal Housing Finance Agency (FHFA). The FHFA uses a House Price Index, or HPI, when determining their limits. This explains the $33,350 increase in Denver FHA loan limits for 2015. It was done to keep pace with rising property values in the area, and to ensure borrowers could afford to purchase a modestly priced home when using this mortgage program.

But not all FHA borrowers will qualify for the loan limits shown above. This is a common misconception, particularly among first-time home buyers. These lending limits simply put a cap on the maximum lending amount the Federal Housing Administration will insure. For example, if you are looking for a single-family home in Denver in the $500,000 price range or higher, you probably would not qualify for an FHA loan (since you are shopping about the Denver metro area limit).

Ultimately, it's the lender's call as to how much of a mortgage loan they are willing to lend you. They make these decisions based on debt-to-income ratios, primarily. These days, most lenders want to see a total debt-to-income ratio no greater than 45%, though that number is not set in stone.

The Denver FHA loan limits shown above are established by the Department of Housing and Urban Development (HUD), which manages this mortgage-insurance program. These maximum lending amounts are updated annually.

Disclaimer: This page offers 2015 FHA lending limits for the Denver metro area. This information was based on data disseminated by the Department of Housing and Urban Development. HUD is the official source for loan limits, and is therefore deemed reliable. We make no guarantees about the accuracy of the information above. For the most current and accurate information available, please visit HUD.gov.