Note: Looking for 2023 FHA loan limits? Find our updated blog here.
FHA loans make homeownership possible for many families across the country. This type of mortgage backed by the Federal Housing Administration (FHA) is a great option for many homebuyers in Colorado due to the lower down payment and credit score requirements. FHA loans vary by state and county, and by having a better understanding of loan limits and requirements for 2022, you and your mortgage lender can work together to make sure this type of mortgage is right for you.
The best way to determine if an FHA loan is the right mortgage is to speak with an FHA broker. By working with the Reichert Mortgage Team, your broker will give you all of the information you need about these loans. The experienced team at Reichert are experts in this loan type and will work with you to see if you qualify. As a certified mortgage broker in Colorado Springs, the Reichert Mortgage Team is transparent and honest with you when it comes to what is best for you as you work towards purchasing a home.
What are FHA Loans?
FHA loans are mortgages insured by the FHA to make homeownership more widely available. These loans are a great option for first-time home buyers and borrowers with lower credit scores and income because this type of mortgage has more flexible requirements for homeownership. The requirements to get approved for an FHA loan vary, and the amount you can borrow depends on a number of factors, such as credit score, debt-to-income ratio, and down payment amount.
FHA Loan Requirements
The FHA does not lend mortgages but rather insures the loan. Lending requirements vary by mortgage broker, but individuals can typically qualify for an FHA loan if they meet basic requirements, such as:
- Two years of employment history
- Stable income and employment
- Minimum down payment of 3.5% but can increase depending on credit score
- Income meets front-end and back-end debt ratios
When researching FHA loans, it is important to be aware of how these requirements vary depending on the lender, bank, or credit union that is issuing the loan. For example, minimum credit scores depend on the FHA lender, so be mindful of these requirements and more when obtaining an FHA loan to purchase your home. It is also a good idea to shop around and compare FHA lenders to gain a better sense of the different qualifications for an FHA mortgage as well as lenders’ rates and fees.
2022 FHA Loan Limits
To keep up with home price inflation, the FHA increased the loan limits in 2022. The new baseline amount, which applies to most single-family homes, increased to $420,680. This is almost a $65,000 increase over last year’s FHA baseline loan limit of $356,360.
FHA loan limits for single-family homes are even higher in more expensive areas. Mid-range areas have a range of $420,681 to $970,799 and high-cost areas have an FHA loan limit cap of $970,800. There are special exceptions made for Alaska, Hawaii, Guam, and the U.S. Virgin Islands where the FHA caps single-family loan limits at $1,456,200.
The FHA also insures mortgages on multifamily units up to a 4-unit property. These types of homes have even higher loan limits compared to single-family homes and vary once again depending on the county the home is located.
| Two-unit property | Three-unit property | Four-unit property | |
| Low-cost area | $538,650 | $651,050 | $809,150 |
| Mid-range area | $538,651-$1,243,049 | $651,051-$1,502,474 | $1,502,475 |
| High-cost area | $1,243,050 | $809,151-$1,867,274 | $1,867,275 |
| AK, HI, Guam, and U.S. Virgin Islands | $1,864,575 | $2,253,700 | $2,800,900 |
FHA Loan Limits in Colorado
FHA loan limits are dependent on the county that you live in as well as whether the mortgaged home is a one-unit, two-unit, three-unit, or four-unit property. In Colorado, there are 64 counties with FHA loan limits ranging from a single-family home of $420,680 in Alamosa County to a high of $1,867,275 for a four-unit property in Garfield County.
If you live in El Paso County, FHA loan limits are below. Otherwise, you will want to explore loan limits in your Colorado county to have a more accurate estimate of the maximum FHA loan available for one-unit, two-unit, three-unit, and four-unit properties.
2022 FHA Loan Limits in El Paso County, Colorado
In El Paso County, Colorado, FHA loan limits are capped at $460,000 for a single-family home to $884,600 for a quad-plex.
| One-unit property | Two-unit property | Three-unit property | Four-unit property |
| $460,000 | $588,850 | $711,800 | $884,600 |
FHA Loan Lender | Reichert Mortgage Team
An FHA loan can be a great option for homebuyers across Colorado, as this mortgage has flexible requirements for credit scores, down payments, and income. Although, it is important to be aware of how FHA loan limits vary depending on the size and area of the property.
As the best mortgage broker in Colorado Springs, the Reichert Mortgage Team is proud to serve the community as a full-service mortgage lending company. The Reichert team can walk you through the requirements for an FHA loan and answer any questions you may have about this type of mortgage. We understand that every situation is unique, so we are happy to sit down with you and discuss your situation to see if you qualify for an FHA loan. Contact us today to set up an appointment!
