FHA Income Limits in Colorado for Homebuyers

One of the questions I hear from many first-time buyers is: “Are there income limits for FHA loans in Colorado?”

The short answer is: no — FHA loans don’t have a set income limit. But there are some important details you should know as you’re planning your home purchase.

FHA Loans Don’t Have Traditional Income Caps

FHA loans are designed to help more people qualify for homeownership, even if you have lower credit or limited savings for a down payment. Unlike some first-time buyer programs or down payment assistance options, FHA itself does not limit how much income you can make to qualify.

Whether you make $40,000 or $400,000 a year, you may still qualify for FHA — as long as you meet the program’s other guidelines.

What FHA Does Look At: Debt-to-Income Ratio

While FHA doesn’t have a max income, they do care about how much of your income goes toward monthly debt. This is called your debt-to-income ratio (DTI).

  • Most FHA loans allow DTI ratios up to about 43% to 50%, depending on your full situation.
  • The better your credit, the more flexibility you may have with your DTI.

This is one of the ways we help buyers figure out how much house you can afford and what price range makes sense for you.

When Income Limits Do Come Into Play: Down Payment Assistance

Where income limits sometimes apply is when you’re using down payment assistance programs alongside your FHA loan.

For example, programs like:

These programs may have income caps based on household size or local median income. But that’s a rule from the assistance program — not FHA itself.

If you’re not using down payment assistance, FHA doesn’t limit your income.

FHA Qualification Is About the Full Picture

In the end, your total financial picture matters more than just your income. FHA loans take into account:

  • Credit score
  • Income
  • Debt
  • Down payment
  • Property type

That’s why getting pre-approved early is so helpful — we can review everything upfront and put a game plan together.

We Help Colorado FHA Buyers Every Day

We work with first-time buyers and FHA borrowers across Centennial, Denver, Parker, Castle Rock, Highlands Ranch, and throughout Colorado. Whether you’re just starting to explore your options or ready to go under contract, we’ll help you understand exactly where you stand and what steps to take.

If you have questions or want to get pre-approved, call or text me anytime at 303-670-0137, email rbaxter@choicemortgage.com, or request a quote here.

Posted in Blog, Home Purchase