How Much Down Payment Do You Need to Buy a Home in Colorado? Artwork

Home Base

Home Base with Marc Emrich

Buying your first home in Colorado is one of the biggest decisions you'll ever make — and most people start with more questions than answers. Home Base is here to change that.

Each week, mortgage broker Marc Emrich of Pivot Lending Group sits down to answer the real questions first-time buyers are asking: How much do I need for a down payment? What does my credit score actually mean for my loan options? What is a forgivable loan — and how is it different from a grant? What happens at closing?

No jargon. No pressure. Just clear, honest answers from a Colorado mortgage professional who helps buyers navigate the path to homeownership every day.

New episodes every week. Subscribe and start your journey home.

All Episodes

Home Base

How Much Down Payment Do You Need to Buy a Home in Colorado?

May 04, 2026

0:00 | 5:09

Lauren sits down with Marc Emrich, Senior Loan Originator at Pivot Lending Group, to clear up one of the most common misconceptions in homebuying: that you need 20% down to purchase a home. Marc walks through what buyers in Colorado actually need depending on their loan type, how state assistance programs can reduce the amount you need at closing, and what else to plan for — like closing costs and earnest money — so there are no surprises. Listeners will come away with a clearer, more realistic picture of what it actually costs to get to the closing table. Home Base is a weekly podcast from Pivot Lending Group helping first-time homebuyers understand the mortgage process, available assistance programs, and what to expect on the road to ownership. 🌐 Resources in English & Spanish: https://cofirsttimebuyergrants.com/

https://cofirsttimebuyergrants.com/

SPEAKER_00 0:00

Welcome to Home Base, the podcast that helps first-time homebuyers understand the road to owning their own home. I am your host, Lauren, and every week I'm joined by Mark Emmerich, Senior Loan Originator at Pivot Lending Group. Let us get into it. Mark, welcome back. Great to have you here.

SPEAKER_01 0:16

Thanks, Lauren. Glad to be here.

SPEAKER_00 0:19

Today, we're tackling one of the biggest questions I hear from people just starting out. How much do you actually need for a down payment to buy a home in Colorado? Because I think a lot of people are walking around with a number in their head that might not even be right.

SPEAKER_01 0:34

You're absolutely right. The down payment question is one where a lot of buyers are working off assumptions that can hold them back before they even get started.

SPEAKER_00 0:43

So let's just address it head on. Is the 20% down payment thing actually a rule?

SPEAKER_01 0:49

It's more of a myth than a rule, honestly. 20% is one option and it does come with a benefit. When you put that much down on a conventional loan, you avoid private mortgage insurance, which is an added monthly cost. But it is absolutely not a requirement. There are loan programs that go much lower than that.

SPEAKER_00 1:07

Okay, so what does the range actually look like? Like what are buyers actually working with?

SPEAKER_01 1:12

It really depends on your loan type. Conventional loans, the most common kind, can go as low as 3% down. FAHA loans, which tend to be popular with first-time buyers, require a minimum of 3.5% down if your credit score qualifies. And then there are VA loans for eligible veterans and active military, and USDA loans for homes in qualifying rural areas. Both of those can be zero down payment.

SPEAKER_00 1:39

Wait, zero down? That's real.

SPEAKER_01 1:42

It's very real, but it's tied to specific eligibility. VA loans are for veterans and service members who meet service requirements. USDA loans are for buyers purchasing in designated rural areas who meet income guidelines. So they're not available to everyone, but for buyers who do qualify, they're a significant opportunity.

SPEAKER_00 2:01

So assuming someone doesn't qualify for zero down, they're still not necessarily looking at a huge number. Are there programs that can help bridge that gap?

SPEAKER_01 2:11

Yes, and this is where a lot of buyers are genuinely surprised. Colorado has home buyer assistance programs that can provide funds you can apply toward your required down payment, which can reduce or even eliminate the out-of-pocket amount you'd need to bring to closing. The specifics depend on the program and your eligibility, but the point is the number you actually need to show up with on closing day can be quite different from the raw loan requirement.

SPEAKER_00 2:37

That's really interesting. Can those programs also help with anything beyond the down payment?

SPEAKER_01 2:43

Some of them can, yes. Buyers sometimes focus entirely on the down payment and then get caught off guard by closing costs, which is a separate expense. Closing costs typically run somewhere between 2% and 5% of the purchase price. They cover things like the appraisal, title insurance, loan origination fees, prepaid taxes, and insurance. Some assistance programs can be applied to closing costs as well, not just the down payment. It really depends on the specific program.

SPEAKER_00 3:14

Is there anything else buyers should have ready up front that doesn't always get talked about?

SPEAKER_01 3:19

Earnest money is one that catches people off guard. When you make an offer on a home, you typically submit an earnest money deposit. It signals to the seller that you're serious. It's usually somewhere in the range of 1% to 2% of the purchase price. The good news is it's not an extra cost. It gets credited back toward your down payment or closing costs at closing. But you do need to have it available when you're making that offer, so it's worth planning for.

SPEAKER_00 3:46

So when you put it all together, down payment, closing costs, earnest money, how does a buyer even figure out their actual number?

SPEAKER_01 3:54

That's exactly why the first step should be talking to a mortgage professional before you start shopping. They can look at your full financial picture, your credit, your income, the price range you're targeting, and help you identify which loan types you qualify for and which assistance programs might apply to you. The goal is to give you a real number, not a guess, so you're not oversaving for something you don't need to and not underprepared for something you do.

SPEAKER_00 4:20

Mark, if someone's listening to this on their way to work and they can only hold on to one thing from today, what would you want it to be?

SPEAKER_01 4:27

Don't let a number you heard somewhere keep you from finding out your actual number. The down payment requirements are lower than most people think. Assistance programs may reduce what you need even further. And the only way to know what applies to you is to have a real conversation with someone who can look at your specific situation.

SPEAKER_00 4:47

Mark, thank you. This was genuinely eye-opening, and I know it's going to help a lot of people feel like homeownership is actually within reach. We'll see you next week on Home Base. That's it for this week's Home Base. If you want to learn more about home buyer programs and resources, visit cofirsttime buyergrants.com. You'll find everything in English and Spanish. We're back next week. Thanks for listening.