How Much Money Do You Need to Buy a House in Denver?

A lot of people start looking at homes before they've figured out their actual cash requirements — and then get surprised when the lender or title company starts rattling off numbers at closing. The down payment is the one everyone knows about. The rest catches people off guard.

Here's a real breakdown of what you need to have ready to buy a home in Denver in 2026, using actual current numbers.

The Down Payment: The Number Everyone Knows

The down payment is the biggest single chunk of cash most buyers deal with — but you have more options than a 20% down payment might suggest.

Here's what different loan types require:

• Conventional loan with 3% down: ~$15,700 on a $524,600 home. You'll pay PMI (private mortgage insurance) until you reach 20% equity.
• Conventional loan with 5% down: ~$26,200. Still requires PMI but with a lower monthly cost than 3% down.
• FHA loan with 3.5% down: ~$18,400. Requires mortgage insurance for the life of the loan unless you refinance into a conventional product later.
• VA loan: 0% down for qualifying veterans and active military. One of the best financing products available.
• Conventional with 20% down: ~$104,900. No PMI, lower monthly payment, but requires a lot more cash upfront.

For most buyers in Denver right now, a 3% to 5% conventional or 3.5% FHA loan is the realistic path. If you're a veteran, start there — VA loans are a significant advantage in this market.

There are also down payment assistance programs available in Colorado for qualifying buyers. The Colorado down payment assistance guide on this site covers current options if you're concerned about the cash requirement.

Closing Costs: The Number That Surprises People

On top of the down payment, buyers in Denver typically pay 3% to 5% of the purchase price in closing costs. At the current median price of approximately $524,600, that works out to roughly $15,700 to $26,200.

What's inside that number:

• Loan origination fee: Usually 0.5% to 1% of the loan amount, charged by your lender for processing the mortgage
• Title insurance (lender's policy): Required. Protects the lender if there's a title defect discovered after closing
• Title insurance (owner's policy): Optional but strongly recommended. Protects you personally from title issues
• Appraisal: Typically $500 to $800 in the Denver area, required by most lenders
• Prepaid interest: You'll prepay a few days of mortgage interest at closing, depending on your closing date
• Homeowners insurance (first year upfront): Usually $1,200 to $2,000 for a single-family home in Denver; more if you're in a higher-risk area
• Property tax escrow: Lenders typically collect several months of property taxes upfront to fund your escrow account
• Recording fees and transfer taxes: Colorado's transfer tax is relatively modest compared to states like California or New York

One thing worth knowing: in Colorado, buyers sometimes negotiate for sellers to contribute toward closing costs — especially in a market where homes are sitting longer. Right now, with inventory up and sellers more motivated, asking for a closing cost credit is a legitimate part of many offers. I've been able to get that done for buyers regularly in recent months.

Earnest Money: The Deposit That Shows You're Serious

When you go under contract on a home in Colorado, you'll submit earnest money — a deposit that shows the seller you're committed. In the Denver market, this typically runs 1% to 2% of the offer price.

On a $525,000 home, expect to put down $5,250 to $10,500 within a few days of going under contract. This money is held in an escrow account and credited toward your costs at closing — it's not an extra expense, just cash that moves earlier in the process.

If you back out during your inspection or due diligence period (Colorado contracts give buyers meaningful protection here), you typically get the earnest money back. If you walk after the objection deadline without a valid contract reason, you risk losing it. Understanding these timelines is one reason having a knowledgeable agent matters.

Inspection Fees: Don't Skip This

A general home inspection in Denver typically runs $400 to $600 for a single-family home, depending on size. Most buyers also add a sewer scope — roughly $150 to $200 — which is particularly important in older Denver neighborhoods where clay sewer lines are common. Radon testing adds another $150 or so.

Budget approximately $700 to $1,000 for inspections on a typical Denver-area home. This money is paid directly to inspectors and is not refundable regardless of outcome.

Moving and Initial Setup Costs

Professional movers in the Denver area typically run $1,500 to $4,000 depending on distance and the size of your move. Local moves tend toward the lower end; moves from out of state are higher. Budget accordingly.

You'll also want some reserves for immediate needs after move-in: locks, appliances if not included, any repairs that weren't seller credits, and the general list of things that come up when you move into a new place. A conservative buffer here is $2,000 to $5,000.

What It Adds Up To at Different Price Points

Here's an estimate of total cash needed at three common purchase prices, using a conventional loan with 5% down:

• $400,000 home: $20,000 down + ~$12,000–$20,000 closing costs + ~$4,000–$7,000 earnest/inspections/moving = approximately $36,000–$47,000
• $525,000 home (near median): $26,250 down + ~$16,000–$26,000 closing costs + ~$5,000–$9,000 other = approximately $47,000–$61,000
• $700,000 home: $35,000 down + ~$21,000–$35,000 closing costs + ~$7,000–$12,000 other = approximately $63,000–$82,000

With 3% down instead of 5%, the down payment shrinks but other figures stay similar. FHA buyers will have different numbers. VA buyers at 0% down can reduce the total significantly — sometimes to just closing costs, earnest money, and move-in expenses.

Where to Find Homes at Different Price Points

If $400,000 to $500,000 is your range, Aurora is where you'll find the most options right now. Englewood and Lakewood offer entry-level single-family homes in that range too, with good Denver access.

In the $500,000 to $650,000 range, Littleton, Centennial, and Parker are all competitive markets with solid inventory right now. Start your search here to see what's active in each area.

Above $650,000, Highlands Ranch, Castle Rock, and Castle Pines are the common landing spots for move-up buyers in the south metro.

One More Thing: Reserves

Some lenders will require that you have a certain number of months of mortgage payments in savings after closing — this is called reserves. Conventional loans often want two months of PITI (principal, interest, taxes, insurance) on hand. On a $525,000 purchase at 5% down, your monthly PITI might run approximately $3,500 to $4,000 at current interest rates — meaning two months of reserves adds another $7,000 to $8,000 to what you need liquid.

If your lender requires reserves, that cash doesn't disappear — it stays in your account — but it does need to be there and documented at closing.

Get a Real Number for Your Situation

The ranges above are useful starting points, but your actual number depends on your loan type, the specific home, your lender's fees, and how the contract is negotiated. The single best move you can make before house hunting is getting pre-approved — that conversation will give you real numbers, not estimates.

If you want to talk through where you stand or start browsing homes in your price range, I'm available. You can also get a free home valuation if you own a home and are thinking about using equity toward your next purchase. And if you're still doing research, the blog has more buyer guides to help you get ready.

Reach out anytime — (720) 419-1286 or just reply here. Buying in Denver is very doable if you know what you're working with going in.