This guide is part of our Denver Home Buying Process→ [Denver Home Buying Process]

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Buying a home in Denver today is less about hitting a magic number and more about understanding how purchase price, down payment, monthly costs, and reserves work together in a high-cost, high-opportunity market. Median prices sit near the high‑$500,000s to low‑$600,000s, with detached homes typically in the mid‑$600,000s and condos and townhomes closer to the high‑$300,000s to low‑$400,000s, so “how much money you need” depends heavily on what segment you’re targeting and how conservative you want your budget to be. What follows is a practical framework to translate your income, savings, and risk tolerance into a Denver homebuying budget that can hold up over time.​

Understanding Denver home prices today

Home prices form the starting point for every other number in your plan, from down payment to closing costs to ongoing ownership expenses.

• Metro Denver’s overall median sale price is around the high‑$500,000s to roughly $585,000–$599,000, reflecting a modest pullback from the pandemic peak but still elevated by national standards.​
• Detached single‑family homes in the city often run in the mid‑$600,000s, while attached homes (condos and townhomes) average closer to $390,000–$400,000.​
• Listing data shows median listing prices around $579,000 as of late 2025, confirming that buyers should expect most “move‑in ready” options to cluster in the mid‑$500,000s to mid‑$600,000s with higher premiums in core neighborhoods.​

This price structure matters because it defines the minimum capital you need just to participate in the market, especially if you are aiming for a single‑family home versus a condo. A buyer targeting a $600,000 detached home is solving a very different equation from a buyer focused on a $425,000 townhome along a light‑rail corridor.

How much down payment you actually need in Denver

There is a wide gap between the minimum down payment allowed by lenders and what most competitive Denver buyers actually use.

• Recent data shows a median down payment of roughly 15% in Denver, around $84,000 on a typical purchase, as buyers put more cash down to manage higher mortgage rates and avoid excessive monthly payments.​
• For context, a national lender example for “starter” homes in Denver shows that even 3%–5% down is possible, with a 3% down payment of about $12,150 and 5% around $20,250 on a lower‑priced property.​
• Many local buyers still target the 20% threshold when they can, not because it is required, but because it eliminates private mortgage insurance and offers more flexibility if values flatten for a few years.

From a practical standpoint:

• Entry‑level attached home (~$400,000):
  • 3% down ≈ $12,000
  • 5% down ≈ $20,000
  • 15% down ≈ $60,000
  • 20% down ≈ $80,000
• Typical detached home (~$650,000):
  • 5% down ≈ $32,500
  • 15% down ≈ $97,500
  • 20% down ≈ $130,000

The key is that in Denver, your down payment strategy is not just about qualifying for the loan; it is about how much payment volatility you can stomach in a market where insurance, taxes, and maintenance can rise. Serious buyers usually decide on a target down‑payment band (for example, 10%–15%) and then work backward to a price range that preserves a healthy monthly cushion.

What monthly payment looks like at Denver prices

Sticker price tells you if you can enter the market; monthly cost tells you whether you can stay there comfortably.

• At recent Denver mortgage rates, a 20% down payment on homes between $600,000 and $700,000 typically produces principal and interest payments in the roughly $4,200–$5,100 per month range on a 30‑year loan.​
• With 15% down in the same price band, monthly payments often rise into the mid‑$4,000s to mid‑$5,000s, reflecting both a larger loan amount and the likely addition of mortgage insurance.​
• On homes in the $450,000–$550,000 range with 20% down, principal and interest often run in the low‑to‑mid‑$3,000s.​

Those numbers matter because most stable budgets in Denver pair:

• Housing costs (mortgage, taxes, insurance, HOA) at or below 30%–35% of gross household income.
• Enough leftover margin for Colorado realities: higher auto costs, variable utility bills, and the occasional major home repair driven by freeze‑thaw cycles.

In concrete terms, a household stretching to buy a $650,000 home with a $4,500+ monthly payment needs to be confident not just in today’s income, but in income durability through career moves, possible job changes, or commute shifts from downtown to the Denver Tech Center or vice versa.

Property taxes, insurance, and HOA dues in Denver

Too many buyers focus on the mortgage and treat everything else as an afterthought. In Denver, that is a quick path to feeling “house poor.”

• The average effective property tax rate in Denver is around 0.55% of home value—lower than the national average but still a meaningful line item.​
• At that rate, a $640,000 home generates roughly $3,520 per year in property taxes, or about $293 per month added to your escrow.​
• Homeowners insurance in Denver often averages around $1,200 per year, or about $100 per month, though actual premiums vary with coverage choices, age and type of home, and proximity to open space.​

Layered together, this means:

• A $600,000–$650,000 home can easily carry $350–$450 per month in taxes and insurance before you factor in any HOA dues.
• Many Denver condos and townhomes include HOA fees ranging from a few hundred dollars to well over $500 per month, particularly in central neighborhoods with shared amenities and structured parking.

These “non‑mortgage” costs matter because they compress your flexibility. The couple that can handle a $3,500 principal‑and‑interest payment may find their true housing cost closer to $4,200 when property taxes, insurance, HOA dues, and utilities are added. In a city with variable heating demands and occasional extreme cold snaps, underestimating monthly carrying costs is one of the most common mistakes relocating buyers make.

Upfront cash beyond the down payment

The money you need to buy a home in Denver is more than just down payment plus closing costs. A realistic budget includes:

• Closing costs: Typically 2%–4% of the purchase price, including lender fees, title, appraisal, recording, and prepaid taxes and insurance. On a $600,000 home, that can mean $12,000–$24,000 on top of your down payment.
• Inspection and due diligence: General inspection, sewer scope, radon test, and specialized evaluations are common in Denver’s older housing stock and can add $800–$1,500 or more. Older bungalows near central Denver or mid‑century ranches in neighborhoods like Harvey Park often warrant deeper investigations because of age and prior renovations.
• Immediate repairs and furnishings: Even a “turnkey” property usually needs some cash for paint, window coverings, minor electrical or plumbing updates, or basic yard work. The further you get from new construction, the more conservative you should be here.
• Emergency reserves: In a climate with freeze‑thaw cycles, intense sun at altitude, and aging infrastructure in some neighborhoods, an emergency fund equal to at least three to six months of total living expenses is simply prudent.

From a practical standpoint, many Denver buyers who feel secure going under contract have:

• Down payment: 5%–20% of purchase price.
• Closing costs: 3% as a working baseline.
• Immediate post‑closing buffer: at least $5,000–$10,000 for repairs and furnishings.
• Separate emergency savings that remain untouched.

This structure is what separates buyers who can absorb a roof repair, sewer line issue, or unexpected job change from those who feel forced to sell or refinance at the first sign of stress.

Matching your budget to Denver’s neighborhoods and commutes

Within Denver city limits, the same budget can buy very different homes depending on where you are willing to live and how you commute.

• Core neighborhoods and those with strong walkability, transit access, or short commutes to downtown and the DTC—such as Washington Park, Platt Park, Highlands, and Congress Park—command higher prices per square foot and often require larger down payments to keep payments reasonable. Listing data shows these areas consistently trading above the overall median.​
• Neighborhoods farther from the urban core or closer to industrial corridors, or those with smaller or older housing stock, can offer lower purchase prices and therefore lower total cash requirements. Areas on the city’s eastern or far‑northeastern edges, for example, often post more approachable medians.

For serious buyers, the question is usually not “Can I afford Denver?” but “Where in Denver does my budget let me buy the right trade‑off between commute, space, and long‑term value?” A household with $80,000 in liquid funds can:

• Pursue a smaller central condo with a 15%–20% down payment, targeting low commute times and lower transportation costs.
• Or stretch for a modest single‑family home in a slightly more peripheral neighborhood with a 10% down payment, accepting a longer drive but gaining a yard and more control over monthly HOA exposure.

Your choice shifts not just your upfront cash needs, but also your ongoing costs and future resale audience.

How much income you need for typical Denver price points

While every lender uses its own formulas, the Denver market’s current prices and mortgage rates imply some rough income ranges for comfortable ownership.

• With median home prices around $585,000–$599,000 and mortgage rates hovering in the mid‑single digits, many buyers targeting a detached home in the mid‑$600,000s need a six‑figure household income to keep total housing costs near one‑third of gross pay.​
• Cost‑of‑living analyses peg Denver’s median household income around the mid‑$70,000s, underscoring the gap between median incomes and the incomes typically required to comfortably carry a mid‑$600,000 home.​

For planning purposes, consider three simplified bands:

• Condos/townhomes around $400,000–$450,000: Often best suited to households with stable incomes in the $85,000–$110,000 range, depending on other debts and down payment.
• Detached homes around $600,000–$650,000: More comfortable for households in the $130,000–$170,000 range, especially if other debt is minimal and down payment is 10% or higher.
• Higher‑end homes $800,000 and up: Typically call for substantial down payments and incomes well into the $200,000+ range to avoid over‑leveraging.

These are not hard rules, but they highlight the central trade‑off: in Denver, the combination of price level and non‑housing expenses (from transportation to childcare) means you should underwrite your own situation more conservatively than a lender’s maximum approval.

Building your personal Denver homebuying number

Ultimately, “How much money do you need to buy a home in Denver?” is best answered with a personal model rather than a generic benchmark. A thoughtful framework looks like this:

• Decide how much of your monthly gross income you are truly willing to allocate to housing, including mortgage, taxes, insurance, HOA, and utilities.
• Choose a target down‑payment range that still leaves you with strong reserves—whether that is 5%, 10%, 15%, or 20%.
• Translate those two numbers into a maximum purchase price, then compare that figure to what different neighborhoods actually offer at that level.
• Adjust for your commuting patterns, school needs, and tolerance for future renovation projects. A smaller, better‑located home can sometimes support appreciation and rental potential more reliably than a larger home in a weaker location.

Done well, this process tends to lower the maximum price you originally had in mind but increase your confidence that once you own the home, you can hold it through cycles, job changes, and normal maintenance surprises.

A clear next step

If you are weighing a purchase in Denver—whether you are moving from another Colorado suburb, relocating from out of state, or stepping up from a condo to a single‑family home—the most useful next step is a detailed, numbers‑driven review tailored to your situation. That means aligning your income, savings, and comfort with risk to actual Denver price points, neighborhoods, and ownership costs in today’s market.​

Reach out directly to the authoring agent for a confidential, data‑based Denver affordability consultation. Together, you can map out how much money you truly need to buy in Denver, which neighborhoods fit your budget and commute, and what steps to take now so that when the right home appears, you can move decisively and with confidence.​