What is the down payment requirement for a first-time home buyer in Colorado?
written by Mackenzie Cayer
For most first-time homebuyers, the down payment is the biggest concern - and often the biggest misconception. Many buyers delay purchasing because they think they need far more cash than they actually do.
How Much Do You Really Need?
There are multiple low down payment options available today:
FHA loans: as little as 3.5% down
Conventional loans: 3% down for first-time buyers and 5% down for non–first-time buyers
While putting 20% down eliminates mortgage insurance, it’s not required to buy a home - and for many buyers, it’s not the best strategy.
The Truth About PMI
Mortgage insurance (PMI) is often viewed as expensive, but that’s not always the case.
With good credit, PMI on a conventional loan is usually very manageable
The difference in PMI between 5% down and 10% down is often minimal
PMI pricing is based on loan amount, loan-to-value, and credit score
Mortgage brokers shop multiple PMI providers to find the best option for your specific profile.
Assistance Programs You May Not Know About
Many buyers qualify for programs they didn’t realize existed:
State programs like CHFA
City and county grants designed to encourage homeownership in certain areas
Community investment programs based on property location
Some lenders even offer special incentives, such as no PMI with only 5% down, depending on the institution and buyer profile.
What About Specialty & Employer Programs?
Loans for certain professions do exist, but they’re typically tied to private investors with limited funds and may not always be available. These programs change often and can be hard to find - asking your employer and an experienced loan officer is the best place to start.
Common Down Payment Myths
“Low down payment offers don’t get accepted.”
Sellers care about certainty. If your financing is solid and verified, the seller gets paid.“More money down means you’ll close.”
Down payment size does not determine your ability to close - your loan approval does.
Bottom Line
Before assuming you can’t buy, talk to a professional. You may have options requiring far less cash than expected - sometimes as little as $1,000 down.
You might be closer to homeownership than you think!
We’re Here to Help
Have questions about the minimum down payment for a house as a first-time buyer?
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