Denver's housing market runs on conventional financing. With a median sale price hovering around $560,000 in 2026 — and neighborhoods like Washington Park, LoHi, and Stapleton pushing well into the $700,000–$900,000 range — most Denver buyers are above the FHA loan ceiling and squarely in conventional territory. Tayton Capital works with wholesale lenders to get Denver buyers competitive conventional rates without the overhead of a retail bank.
Conventional Loans · Colorado
Conventional Home Loans in Denver, Colorado
Denver's housing market runs on conventional financing. With a median sale price hovering around $560,000 in 2026 — and neighborhoods like Washington Park, LoHi, and Stapleton pushing well i
County
Denver County
2026 Loan Limit
$832,750
Median Price
~$560,000
Minimum Down
3%
2026 Conforming Loan Limit — Denver County
Denver County sits at the standard Colorado conforming limit of $832,750 for a single-family home in 2026. That covers the vast majority of Denver transactions, meaning you can finance up to $832,750 without stepping into jumbo pricing. For purchases above that threshold — common in Highlands, Cherry Creek, and Observatory Park — see our Jumbo Loans Denver page.
Why Conventional Financing Dominates Denver's Market
Denver's seller market rewards buyers who look strong on paper, and conventional loans do that better than FHA. Conventional offers are treated more favorably by sellers because there's no FHA appraisal overlay and no requirement for the property to meet HUD condition standards. In a multiple-offer situation on a Washington Park bungalow or a Congress Park craftsman, a conventional pre-approval can be the difference between winning and losing.
Denver is also a high-income metro. The city's technology corridor along I-25, the aerospace and defense presence at Buckley Space Force Base in nearby Aurora, and the downtown financial district all generate borrower profiles — high credit scores, stable W-2 income, meaningful assets — that fit conventional underwriting well. If your FICO is above 720 and your down payment is 10% or more, conventional pricing in Denver will almost always beat FHA once you factor in the mortgage insurance comparison.
Conventional loans in Denver also work well for condominiums, which make up a large share of the metro's housing stock. FHA has strict condo project approval requirements; conventional financing under Fannie Mae guidelines is more flexible, which matters when you're looking at a unit in RiNo, Uptown, or the Golden Triangle.
Minimum Qualification Requirements
- Credit score: 620 minimum; best pricing at 740+
- Down payment: 3% minimum (first-time buyers), 5% otherwise; 20% eliminates PMI
- Debt-to-income ratio: up to 45–50% with compensating factors
- Employment: 2-year history preferred; W-2 or self-employed with 2 years tax returns
- Reserves: 2 months PITI typical; higher for investment properties
Down Payment Scenarios — Denver Median Home ($560,000)
- 3% down → $16,800 down, $543,200 loan, PMI ~$140/mo
- 5% down → $28,000 down, $532,000 loan, PMI ~$115/mo
- 10% down → $56,000 down, $504,000 loan, PMI ~$75/mo
- 20% down → $112,000 down, $448,000 loan, no PMI
PMI drops off automatically when your loan balance reaches 80% of the original purchase price — typically 7–9 years into the loan at normal amortization.
Denver Neighborhoods and Price Points
Denver's conventional loan market spans a wide range. Entry-level buyers target Montbello, Globeville, and Elyria-Swansea, where prices still dip below $400,000. Move-up buyers concentrate in Sunnyside, Berkeley, and Whittier in the $500,000–$700,000 range. The luxury conventional segment — buyers putting 10–20% down on $700,000–$832,750 homes — is most active in Wash Park, Hilltop, and Park Hill. Above $832,750, Congress Park and Cherry Creek transactions typically convert to jumbo.
Conventional vs. FHA in Denver — Which One Fits?
For Denver buyers with a 680+ credit score and at least 5% down, conventional almost always wins on total monthly cost once PMI is factored in against FHA's permanent mortgage insurance premium. FHA's MIP (0.55% annually) never cancels on loans with less than 10% down; conventional PMI does. A Denver buyer putting 5% down on a $560,000 purchase would pay roughly $450/year less in insurance costs under a conventional loan if their FICO is 700 or above. See our FHA vs. Conventional comparison for a full breakdown.
Conventional Loan FAQs — Denver
Get pre-approved for a conventional loan in Denver
As little as 3% down, PMI that cancels, and pricing that beats retail banks.