2026 Conforming Loan Limits: A Big Win for Colorado Buyers
Every November the Federal Housing Finance Agency (FHFA) announces updated conforming loan limits for the following year. For 2026 the baseline conforming limit rose to $806,500 nationwide—up from $766,550 in 2025. In designated high-cost counties the ceiling is even higher, reaching $1,209,750.
For Colorado buyers—particularly those purchasing in mountain resort communities—this is meaningful news. Higher conforming limits mean more borrowers can use conventional financing instead of costlier jumbo loans.
What Changed for 2026?
| Metric | 2025 | 2026 |
|---|---|---|
| Baseline limit (1-unit) | $766,550 | $806,500 |
| High-cost ceiling | $1,149,825 | $1,209,750 |
| FHA floor | $498,257 | $524,225 |
Colorado High-Cost Counties to Watch
Several Colorado counties qualify for limits above the baseline because their median home values exceed the national threshold:
- Eagle County (Vail, Avon, Edwards): Limit near the ceiling at ~$1,209,750
- Pitkin County (Aspen): At the ceiling — $1,209,750
- San Miguel County (Telluride): Near ceiling at ~$1,149,825+
- Summit County (Breckenridge, Frisco, Keystone): ~$1,075,000
- Boulder County: ~$856,750
- Routt County (Steamboat Springs): ~$890,000
The exact per-county figures are published on the FHFA website and depend on median home prices in each area.
Why Higher Limits Matter
Lower Interest Rates
Conforming loans typically carry lower rates than jumbo products. A borrower who previously needed a jumbo mortgage but now falls under the conforming cap could save 0.25–0.50% on their rate—translating to tens of thousands of dollars over the life of the loan.
Lower Down Payments
Conventional conforming loans allow as little as 3–5% down for qualified borrowers. Jumbo loans generally require 10–20%. That difference on an $800,000 home is $40,000–$120,000 in cash you need at closing.
Simpler Underwriting
Jumbo loans involve stricter reserve requirements, additional documentation, and sometimes portfolio-specific guidelines. Conforming loans follow Fannie Mae and Freddie Mac standards—well-established and efficient.
Who Benefits Most?
- First-time mountain buyers in Summit, Routt, and Grand counties where median prices hover near conforming limits
- Move-up buyers selling a starter home and purchasing in the $750K–$1M range
- Refinancers whose existing jumbo loan balance now falls under the new conforming ceiling
- Second-home buyers looking at condos in ski communities
Planning Your 2026 Purchase
If your target purchase price is within striking distance of the new conforming limits, a few strategies can help:
- Increase your down payment slightly to bring the loan amount under the cap
- Negotiate seller concessions toward closing costs to preserve cash
- Consider a conforming-eligible property type (single-family, condo with Fannie approval, townhome)
- Get pre-approved early so you know exactly which loan tier applies to you
Cedar Home Loans Can Help
Navigating the line between conforming and jumbo financing is one of our specialties. Our team in Telluride, Boulder, and Vail evaluates every borrower individually to find the most cost-effective financing structure. Contact us to discuss your 2026 purchase plans.
