The belief that a large down payment is mandatory is one of the most persistent and damaging ideas in real estate. I talk to buyers every week who have been sitting on the sidelines for years because they think homeownership is further away than it actually is. In most cases, they could have bought 12 to 24 months ago.
The median home price in Denver metro in April 2026 was $605,000 according to the Denver Metro Association of Realtors. Here's exactly what you'd need at different down payment levels and loan types.
Where the large-down-payment assumption comes from
There is a real reason the twenty percent figure persists: it is the conventional threshold at which private mortgage insurance is no longer required. PMI is a genuine cost worth understanding, and it is added to your monthly payment.
But avoiding PMI is not automatically the right choice for every buyer. In many cases, putting less down and keeping cash liquid makes more financial sense, especially in a market where rates may drop and refinancing becomes an option.
Putting twenty percent down on a median-priced Denver home ties up a substantial amount of capital that could otherwise stay liquid or invested. That is the real tradeoff worth weighing, and it is separate from whether you can qualify.
What you actually need by loan type
Down payment requirements vary substantially by loan program. Some programs are built around minimal down payment requirements for eligible borrowers, others require more. Which programs you qualify for depends on your service history, income, credit profile, and the property itself.
These are the baseline numbers before factoring in seller concessions or down payment assistance, both of which can reduce what you need at closing significantly in today's Denver market.
How seller concessions reduce your cash to close
In today's Denver market, sellers are more motivated than they've been since before COVID. Many are willing to contribute toward buyer closing costs as a concession. Seller concessions of a meaningful size are not unusual right now on properties that have been sitting. That can cut your cash to close nearly in half on an FHA or conventional loan, or fund a 2-1 rate buydown that reduces your payment for the first two years.
In the current Denver market, sellers are frequently contributing toward buyer closing costs on properties that have been listed for a while. A negotiated concession can substantially reduce the cash you need at the closing table, or fund a temporary rate buydown.
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Colorado CHFA: down payment assistance most buyers don't know about
CHFA (Colorado Housing and Finance Authority) offers down payment and closing cost assistance to qualifying Colorado buyers. The assistance can be structured as a grant or a low-interest second mortgage. Program details, income limits, and purchase price limits are published by CHFA and change periodically, so eligibility is worth confirming against current figures.
How the pieces combine
The buyers who get to closing with the least out of pocket are usually combining more than one lever. A loan program with a low down payment requirement, a negotiated seller concession covering closing costs, and where applicable a down payment assistance program can stack together.
Which combination is available to you depends on your eligibility for each piece, and that is worth mapping out before you start shopping rather than after you are under contract.
What about the monthly payment?
Monthly payment varies with your loan amount, your rate, whether mortgage insurance applies, and your property taxes, homeowners insurance, and any HOA dues. A lender can produce a full payment breakdown for a specific property and loan structure, which is far more useful than a generic table.
These are principal and interest only: property taxes, homeowners insurance, and HOA fees are additional. A full payment picture depends on your specific property and situation.
The honest conversation about affordability
What I see most often is buyers who have enough: they just don't know it yet. The combination of low down payment loan options, seller concessions available in today's market, and CHFA assistance puts homeownership within reach for a lot of people who have talked themselves out of even starting the conversation.
A 15-minute call is genuinely all it takes to know where you stand. I run the numbers, tell you what you qualify for, and give you a clear picture of what buying would actually look like for your situation. If you want a sense of how I work through these situations, client reviews are here, and there is more background on my approach if that helps.
Buying in a specific part of the metro? I have local guides for Denver.
Note: Three Point Mortgage is not a CHFA Participating Lender and is not affiliated with or endorsed by the Colorado Housing and Finance Authority. CHFA loans are originated through wholesale lenders that hold agreements with CHFA. Official program information is at chfainfo.com.
Chris Cartwright is a licensed mortgage broker serving homebuyers across Colorado, Washington, Texas, California, Arizona, and Florida. He helps buyers understand exactly what they need and structure financing around their actual goals.
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Actual rates, payments, and cash requirements will vary based on creditworthiness, loan type, and market conditions. This content is for informational purposes only. All loans subject to credit approval. Equal Housing Lender.