Income Needed to Buy in Denver
Common Question: 'How much income do I need to buy a house in Denver?' Based on the median home price of $580,000, lenders typically look for an annual household income of roughly $40,600. This ensures your payment stays below 28% of your gross pay.
Closing Costs in Colorado
Don't forget cash to close. In Colorado, buyer closing costs typically range from 2% to 5%. For a home in Denver, you should budget between $11,600 and $29,000 on top of your down payment.
Rent vs Buy in Denver
Is it better to rent or buy in Denver? With a calculated monthly payment of ~$4,060, buying is currently more expensive monthly than the average rent. However, buying locks in your housing cost against future Colorado inflation.
Hidden Costs: Property Taxes
Generic calculators often get Denver wrong because they underestimate taxes. Our Denver Mortgage Calculator uses the specific Colorado property tax rate of 0.5%, which adds roughly $242/mo to your real payment.
First-Time Buyer Tips (FHA & PMI)
First-time buyers in Denver often utilize FHA loans. Note that putting less than 20% down will trigger Private Mortgage Insurance (PMI), which can add 0.5-1% annually to your loan balance until you reach 20% equity.