How Much House Can You Actually Afford in Denver?

By Rachel Nguyen · 7/28/2026

Before you fall in love with a listing in LoHi or a bungalow in Wash Park, it helps to know what you can actually afford. The number is not just about your salary. Lenders look at the full picture, and so should you.

Start with your debt-to-income ratio

The single most important number in affordability is your debt-to-income ratio, or DTI. It compares your monthly debt payments, including your future mortgage, to your gross monthly income. Most programs want your total DTI at or below roughly 43 to 50 percent, depending on the loan. A lower ratio gives you more room and often a better rate.

Down payment changes everything

In the Denver metro, a larger down payment lowers your monthly payment and can help you avoid or reduce mortgage insurance. But you do not need 20 percent. Conventional loans can start at 3 percent down, FHA at 3.5 percent, and VA loans at zero for eligible veterans. First-time buyers can also stack Colorado down-payment assistance programs on top.

Do not forget the extras

Property taxes, homeowners insurance, and, for some homes, HOA dues all ride along with your principal and interest. A payment that looks comfortable on a basic calculator can feel very different once those line items are added. Build them in early.

Get a real number, not a guess

Online calculators are a great first draft. A pre-approval is the final answer. At Summit Ridge Mortgage, a licensed loan officer will look at your income type, credit, and savings, then shop your file across more than 50 lenders to find the program that stretches your budget the furthest. It starts with a soft credit review, so there is no hit to your score. When you are ready to know your real number, we are ready to run it with you.