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Buying a home typically requires a mortgage. But part of securing a mortgage involves coming up with a down payment. So, what’s the average down payment on a house in 2026 in Colorado?
It takes a lot of planning when it comes to buying a home in Colorado. But one of the first things that need to be done long before a mortgage is applied for and the house-hunting search starts is saving for a down payment.
Most home buyers need a mortgage to buy a home, but that doesn’t mean every penny can be borrowed from a lender. In the majority of cases, a down payment is required to secure a home loan. And while there are certain programs that are available to those who qualify that may allow a 0% down payment, most average mortgage products require a down payment.
The question is, how much do you need to put down to get a mortgage? What’s the average down payment on a house in 2026?
Traditionally, a 20% down payment towards a home purchase is desirable because Private Mortgage Insurance (PMI) can be avoided, but not having one fifth of the home purchase price in cash should not dissuade you from buying a home. Having PMI payments for a few years might easily be offset by not renting any more.
With a smaller down payment comes a larger loan amount. It also means the buyer will have less equity in the home which makes the situation riskier for the lender. As such, PMI can protect the lender in case the borrower ever defaults.
By putting 20% down, you can avoid having to pay these additional premiums, which will save you money at the end of the day. Further, a larger down payment will also mean less money spent in interest overall, which can further increase savings.
A large down payment will also increase the odds of mortgage approval. It can also help encourage lenders to offer lower interest rates since the risk is typically less with a bigger down payment amount. Again, this can translate into even more savings over the life of the loan.
If you can’t come up with a 20% down payment towards the purchase price of a home in Colorado, you’re not alone! With the median price for a home in the state currently sitting at $599,900, a 20% down payment would equate to $119,980. That’s a hefty sum of money that a lot of borrowers would have a tough time coming up with on their own.
That’s why there are other down payment options that borrowers may consider, such as high-ratio mortgages that allow a minimum down payment of 3%.
In this case, a 3% down payment on an average-priced home in Colorado would work out to be $17,997. While still a lot of money, it’s a lot less than the previous figure and is a lot more doable for many homebuyers.
There are also other options for down payment amounts if you don’t qualify for conventional financing. FHA-backed home loans allow a minimum down payment amount of as little as 3.5%. That’s the minimum requirement in 2026, according to HUD Handbook 4000.1.
In order to be able to put down that little, borrowers need to have a credit score of at least 580. Otherwise, a credit score lower than this would require a down payment of 10%. With that said many lenders will have higher credit score requirements than the FHA minimums.
Typical first-time buyer down payment has ranged from 6% to 9% since 2018; the median was 10% in 2025 (highest since 1989), according to the National Association of Realtors (NAR).
As already mentioned, putting a higher down payment amount can be pretty challenging.
You can increase your down payment and lower your interest payments by sourcing friends from the following:
Saving as early as possible for a down payment is recommended. That way, you have much more time to accumulate the funds needed for this purpose.
Not only that, but it’s helpful to make sure your credit score is relatively high in order to be able to secure a mortgage with a lower down payment amount if saving a big chunk of the purchase price of a home is difficult for you.
The average down payment amount you need for a home in Colorado will also vary based on exactly where in the state you’re making a purchase. While the median price statewide is $599,900, the prices vary from one city to another.
As you can see, the prices vary widely. You could be buying a home for as little as $402,000 in Grand Junction or as much as $989,000 in Boulder. As such, your down payment amount will also vary.
When it comes down to it, the price of the home, your credit score, and the amount of money you’re able to come up with will dictate how much you will be putting down towards the purchase of a home.
Related: Why You Should Get Pre-Approved for a Mortgage Before You Start Shopping
The down payment is a crucial piece of the puzzle when it comes to getting a mortgage in Colorado. Obviously, the more money you can put down, the better in terms of how much you have to borrow and how much you end up having to repay when all is said and done.
Regardless of how much you can come up with, a down payment is required. Do your best to start saving early in order to have enough to secure a mortgage.
If you’re ready to buy a home and apply for a mortgage, reach out to Sammamish Mortgage. Since 1992, we’ve been in the business of helping buyers secure the home loan they need to buy a home in Colorado, as well as other states in the Pacific Northwest, like Washington State, Oregon, California and Idaho. We have a variety of mortgage programs for you to choose from. When you’re ready to apply, get in touch with Sammamish Mortgage right away!
Typical first-time buyer down payment has ranged from 6% to 9% since 2018; the median was 10% in 2025 (highest since 1989), according to the National Association of Realtors (NAR).
The median home price statewide is $599,900.
With a median home price of $599,900, a 20% down payment would be $119,980.
With a median home price of $599,900, a 3% down payment would be $17,997.
No. While 20% down can help you avoid Private Mortgage Insurance (PMI), many mortgage products allow smaller down payments, and some programs may allow 0% down for those who qualify.
Private Mortgage Insurance (PMI) is typically required when you put less than 20% down. It protects the lender if the borrower defaults, but it adds to your monthly payment.
FHA-backed home loans allow a minimum down payment of 3.5%.
To qualify for the 3.5% minimum down payment, borrowers generally need a credit score of at least 580. Lower scores may require a 10% down payment, and lenders may have higher requirements.
Median home prices vary widely by city. For example: Boulder – $989,000; Denver – $575,000; Colorado Springs – $473,500; Fort Collins – $519,000; Grand Junction – $402,000.
Common sources include your savings, borrowing from friends or family, or borrowing against your 401(k).
Whether you’re buying a home or ready to refinance, our professionals can help.
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