Tools
Down Payment Calculator
Compare the minimum down payment and cash to close for each loan type, based on your price, county and how you'll use the home.
What to know in Colorado
- Mountain vacation homes and second homes require 10–25% down—significantly more than a primary residence minimum of 3–3.5%.
- Colorado offers CHFA down payment assistance: a grant of up to 3%, or a deferred second mortgage of up to 4%, of the first mortgage amount (capped at $25,000) for qualified buyers.
- A larger down payment not only eliminates PMI but can also offset the appraisal challenges common in mountain markets.
Frequently asked questions
Minimum down payments vary by loan type: conventional loans require as little as 3%, FHA loans require 3.5%, VA loans require 0%, and USDA loans require 0%. However, mountain vacation homes and investment properties typically require 10%–25% down.
If your down payment is less than 20% on a conventional loan, you'll typically pay private mortgage insurance (PMI), which adds 0.3%–1.5% of the loan amount annually. PMI can be removed once your equity reaches 20%. FHA loans have their own mortgage insurance premiums that last for the life of the loan if you put less than 10% down.
Yes, Colorado offers several down payment assistance programs, including CHFA (Colorado Housing and Finance Authority) programs that provide grants or second mortgages for down payment and closing costs. Eligibility varies by income, location, and first-time buyer status.
While 20% down eliminates PMI, keeping healthy cash reserves is important—especially for mountain properties with higher maintenance costs. Your loan officer can help you balance the benefits of a larger down payment against maintaining adequate savings.
Want these numbers for your scenario?
Start a pre-approval online, or call Andrew and he'll walk through the math with you.