Current conventional guidelines, updated from one source.
Treat these as the program’s fixed points rather than an offer: the minimum down payment for a first-time buyer and for everyone else, the credit floor behind these pages, the leverage at which mortgage insurance begins and the points at which it ends, and the ratio an automated approval allows.
First-time buyer; 5% standard; 97% loan-to-value at the top
On a principal residence the down payment starts at 3% for a first-time buyer and 5% otherwise, the top leverage being 97% loan-to-value. Second homes and investment properties ask for more, as the leverage table shows, and the price of any leverage above 80% is mortgage insurance.
Priced on the score; no agency minimum with an automated approval
A 620 decision score opens the program on the wholesale side; the agencies set no minimum for an automated approval and 620 to 640 for manual underwriting by loan type. The strongest effect of the score is on cost, through loan-level adjustments and the mortgage insurance premium.
Required above 80% LTV; removed at 80% by request, 78% automatically
The insurance line in a conventional payment is a bridge, not a fixture: required above 80% loan-to-value, cancellable at 80% on request and 78% by law, and priced by the insurer on the score inside Fannie Mae’s published 0.58%–1.86% range. Twenty percent down skips it entirely.
With an automated approval; 36% to 45% on a manual file
50% is the ceiling for a file the automated system approves. Manual underwriting caps the ratio at 36% to 45% depending on the score and the reserves, and the automated finding also sets the reserves the file must show.
| Purpose | Occupancy and program | Maximum LTV |
|---|---|---|
| Purchase | One-unit principal residence, first-time buyer (fixed rate) | 97% |
| Purchase | One-unit principal residence, standard | 95% |
| Purchase | HomeReady / Home Possible (income limits apply) | 97% |
| Purchase | Two- to four-unit principal residence | 95% |
| Purchase | Second home | 90% |
| Purchase | Investment property, one unit | 85% |
| Purchase | Investment property, two to four units | 75% |
| Refinance | Limited cash-out (rate-and-term), one-unit principal residence | 95% |
| Refinance | Cash-out, one-unit principal residence | 80% |
| Refinance | Cash-out, two to four units, second home or investment | 75% |
| Combined LTV | Maximum contribution |
|---|---|
| above 90 percent | 3% of the sales price |
| 75.01 to 90 percent | 6% of the sales price |
| 75 percent or less | 9% of the sales price |
| investment property (any) | 2% of the sales price |
| Event | Waiting period |
|---|---|
| Chapter 7 or 11 bankruptcy | four years from discharge or dismissal (two years with documented extenuating circumstances) |
| Chapter 13 bankruptcy | two years from discharge; four years from dismissal (two with extenuating circumstances) |
| Multiple bankruptcy filings | five years when more than one filing within the past seven years |
| Foreclosure | seven years (three with extenuating circumstances, then limited to a principal residence or second home at 90 percent LTV, purchase or limited cash-out) |
| Deed-in-lieu, short sale or mortgage charge-off | four years (two with extenuating circumstances) |
Mortgage insurance: Fannie Mae reports that private mortgage insurance typically ranged from 0.58%–1.86% of the loan amount a year; the premium on a specific loan is priced by the insurer on the score, the leverage, and the coverage, and is never quoted here. Gifts from relatives may fund the entire down payment on a one-unit principal residence. HomeReady and Home Possible lend to 97% with income at or below 80% of the area median; HomeOne lends to the same leverage with a first-time buyer and no income limit.
Current conventional snapshot · updated October 1, 2026 · principal residences occupied within sixty days, second homes, and one- to four-unit investment properties · conforming limits apply by county and are confirmed by a Lendmire loan officer · above the limit, see the jumbo program · no prepayment penalty · Lendmire is a broker, never the lender.
Informational only; not a commitment to lend, an approval, or a quote. Every figure on this page is a program parameter read from Lendmire’s guideline source, built on the agencies’ published guides, and may change without notice; eligibility, the loan amount, the insurance, and the ratios depend on the credit profile, the property, the occupancy, and underwriting. The mortgage insurance estimate is editable and not a premium quote. Lendmire is a mortgage broker licensed in sixteen states for consumer mortgages. NMLS #2371349.
What a conventional loan is — and how the file is qualified.
A conventional loan is a mortgage written to the rules of Fannie Mae and Freddie Mac so a lender can sell it to them after closing. Those rules decide the leverage by occupancy, the credit standard, the insurance above the threshold, and the ratios, and the four cards below take a Denver file apart along exactly those lines.
For the program overview, see Lendmire’s conventional loan program, or the statewide guide at Conventional Loans in Colorado; for the mortgage insurance cancellation rules, see the CFPB.
Leverage by occupancy and buyer
Who the buyer is matters as much as what the home is. A first-time buyer, meaning no ownership interest in a home for three years, qualifies for the smallest down payment on a principal residence; a repeat buyer starts a little higher; and HomeReady, Home Possible, and HomeOne open the top leverage to buyers who meet their conditions.
Credit scores and automated underwriting
Conventional credit is priced more than it is gated. The agencies set no minimum score for a loan their automated system approves, the wholesale programs set a floor, and above the floor the score sets the loan-level price adjustments and the mortgage insurance premium. A Denver buyer with a stronger score pays less on both lines.
Mortgage insurance that cancels
Insurance structures vary: borrower-paid monthly is the default, and lender-paid, single-premium, and split-premium versions exist, each built into the loan differently. The published typical range in the snapshot is Fannie Mae’s, and the actual premium for a Denver file comes from the insurer at lock, never from this page.
Ratios, reserves, and the DU finding
The automated finding is the hinge of a conventional file: it reads the income, the assets, the credit, and the property, allows a total debt ratio up to the automated maximum, and names the reserves the file must show. A Denver underwriter then verifies what the finding assumed.
Every input below is yours: the Denver price, the down payment, the buyer type, the term, the rate, the insurance estimate, and the escrows. The thresholds and the ratio ceiling come from the program; the payment, the insurance, and the cancellation month follow from the arithmetic.
Where Denver buyers borrow — and how a conforming loan fits.
Conventional loans are sized against a local market, and these are Denver’s numbers from the U.S. Census Bureau: how many households own, what a typical home is worth, and what households earn. Together they set the scale of a typical down payment, loan, and insurance premium.
Market context only. Higher values mean a larger down payment in dollars and a larger insurance premium; lower values mean a payment that leaves more room under the ratio ceiling. The percentages do not move; what they amount to does.
Data sources: U.S. Census Bureau — ACS 5-Year (2024) housing and population estimates, including tenure, home values, gross rents, and household income.
Distinct Denver neighborhoods, distinct conventional files.
A Denver condominium, a decades-old family house, and a lakefront second home are three different conventional files: different project reviews, different leverage, different reserves. The six submarkets below show the range.
Established close-in neighborhoods
The Denver blocks nearest the core carry the oldest houses, and a conventional appraisal reads them for value first and condition second: no HUD or VA property standard, but the home must be safe, sound, and marketable, and a failing roof or system still draws a condition note. Denver counts a population near 719K within the Denver-Aurora-Centennial, CO area.
Two-to-four-unit homes
Denver duplexes and small apartment houses are conventional purchases at the multi-unit leverage in the snapshot when the buyer occupies one unit, with rent from the other units counted toward qualifying under the agencies’ rules. About 51% of Denver’s households rent — roughly 171,873 renter households on the latest Census estimate.
Condominiums and townhomes
Much of Denver’s entry-level stock is attached housing, and a conventional loan finances it whenever the project is warrantable under the agencies’ review. The dues go into the ratio, and the first-time buyer’s minimum applies as it would on a house. The median owner-occupied home value in Denver runs near $616,000 on the latest Census estimate.
Higher-value homes
The higher-value Denver file is a limit question, not an eligibility question. The conforming limit caps the loan amount, and the buyer either adds down payment to fit under it or chooses the jumbo route for the whole purchase. Roughly 163,555 Denver households own their homes on the latest Census estimate — 49% of all households, the pool a conventional purchase joins.
Newer infill and recent construction
New rows and recent infill in Denver tend to appraise cleanly, which moves the question to the loan amount: a contract near the conforming limit is confirmed against the county figure before the offer, and a loan above it needs a larger down payment or the jumbo program. Median household income in Denver sits near $94,718 on the latest Census estimate.
Investor and second-home purchases
A second home in Denver, occupied part of the year and never run as a rental business, is a conventional file at the second-home leverage with deeper reserves and part of the down payment from the buyer’s own funds. On a home at Denver’s median value, the first-time buyer’s minimum down payment comes to about $18,500 and the standard minimum to about $30,800 — before closing costs, and before the mortgage insurance that comes with either.
Neighborhood sets the price, the property type, and often the occupancy; the agencies set the rest. The leverage table, the insurance thresholds, the ratio ceiling, and the waiting periods apply identically on every Denver file.
Four ways Denver buyers put a conforming loan to work.
Denver borrowers use conforming loans for reasons that repeat: the first purchase at the first-time-buyer minimum, the purchase with twenty percent down and no insurance, the second home or rental no government program will finance, and the refinance or cash-out on a home with equity.
Buy with twenty percent down and no insurance
The move-up Denver buyer selling one home and bringing twenty percent to the next usually lands here: no mortgage insurance, the strongest cost tier the score earns, and a loan the automated system approves on the equity brought forward.
Buy a first home at the first-time-buyer minimum
For a Denver first purchase, the conventional route pairs the agencies’ lowest down payment with insurance that cancels and no upfront premium; the file is qualified on the score, the ratio, the reserves, and the automated finding, and a family gift may fund the whole down payment.
Buy an investment property
The rental purchase is inside the conventional program at a lower leverage than a principal residence: a Denver buyer uses the agencies’ rules for counting rental income, shows reserves for every property financed, and accepts loan-level adjustments that reflect the occupancy.
Refinance or take cash out
The conventional refinance fits a Denver owner who wants a different term, a different structure, or cash from equity; each has its own leverage, and a cash-out refinance generally needs six months of ownership. A home equity line that leaves the first mortgage alone is the comparison worth running.
Estimate the payment on a Denver price before requesting a quote.
Before you ask for a quote, size the payment yourself: the Denver price, the down payment, the term, the benchmark rate, the insurance estimate, and the escrows go in, and the thresholds and the ratio ceiling come from the same guideline source as the block above. The result is an estimate, the rate is a published market average, and the insurance figure is an editable estimate inside Fannie Mae’s published range.
Denver conventional payment estimate
Seeded at Denver’s median value with the first-time buyer’s minimum down; every field updates the result as you type.
Editable benchmark: 7.03% as of September 24, 2026 · Freddie Mac 30-year average via FRED®. A conventional market reference, not a conventional loan quote.
Estimate seeded at the low end of Fannie Mae’s published range (0.58%–1.86% a year); the insurer prices the actual premium on the score and the leverage. Applies only above 80% loan-to-value.
Illustrative starting assumptions: a $615,000 price near Denver’s median owner-occupied home value, the first-time buyer’s minimum down payment, a thirty-year term at the current Freddie Mac benchmark, mortgage insurance at the low end of Fannie Mae’s published range, property taxes and insurance estimated for Colorado (U.S. Census Bureau). Every field is editable.
Illustrative estimate only — not a Loan Estimate, approval, quote, or commitment to lend. The rate field carries the weekly Freddie Mac thirty-year conventional benchmark, a market reference and not a conventional loan quote; your rate is set by the lender at lock. The mortgage insurance figure is an editable estimate seeded from Fannie Mae’s published typical range, not a premium quote; the insurer prices the actual premium, and the cancellation month assumes scheduled payments with no extra principal and no change in value. Taxes, insurance and dues are editable estimates; closing costs are not included. Conforming loan limits apply by county. Licensed in sixteen states for consumer mortgages.
Same buyer, three very different closings.
Most buyers can close the same purchase three ways, and the structures differ more than the labels suggest: conventional with insurance that cancels, FHA with a small investment and premiums for the life of the loan at full leverage, or VA with nothing down and no insurance for the eligible veteran.
Conventional, FHA, or VA.
The program’s strengths are the cancellable insurance, the breadth of occupancies, and a cost structure that rewards a strong score; its weakness is the same structure applied to a weak one. A Denver buyer with a strong score usually pays less each month here than on FHA.
Where conventional prices the score, FHA prices by schedule. FHA fits the buyer whose score would be priced heavily on a conventional loan, or who needs the ratio ladder’s room; it rarely wins for a Denver buyer with strong credit and a down payment above the minimum. See Lendmire’s FHA loan program.
A Denver buyer with VA eligibility and full entitlement rarely needs a conventional loan for a principal residence: nothing down, no insurance, and residual-income underwriting. Conventional is the route for that same veteran’s second home or investment property, which VA does not finance. See Lendmire’s VA loan program.
Choose by profile: a strong score and any down payment point to conventional; a modest score and a small down payment point to FHA; eligibility with full entitlement points to VA. A Denver loan officer runs all three on the same numbers before recommending one. Above the conforming limit, see the jumbo loan program.
What to prepare for a Denver scenario review.
What a lender reads on a Denver conventional loan, and what you can have ready before anyone asks.
This is a general preparation guide, not a universal checklist. The selected lender may request additional information based on the transaction, the property, the automated underwriting finding, and the income picture. Nothing here is legal or tax advice.
Local details that can change the loan.
The percentages tell only part of the story. What a Denver conventional loan actually becomes depends on the score, the appraisal, the project review, and the automated finding, and these are the details that move it.
Use these checks to keep the Denver file clean and fundable.
Before asking for a quote, know three answers: how much insurance the leverage carries and for how long, what the score does to the price, and whether the property and the loan amount fit the conforming program.
- Plan the insurance: the premium is priced on the score and the leverage inside the published range.
- Confirm the score: the lender’s report sets the decision score; multiple borrowers use the average of the median scores.
- Mind the ratios: the finding sets the reserves, measured in months of the housing payment.
Mortgage insurance: how much, and until when
The premium on a Denver loan can be paid monthly, by the lender in exchange for a different price, as a single premium at closing, or split; the monthly structure cancels under the federal rules, and the others are priced by the lender. The calculator shows the monthly structure and the month the thresholds arrive on scheduled payments.
The score sets the cost
The decision score is read from the lender’s report, and with more than one borrower the automated system uses the average of the median scores. On a Denver conventional file the score rarely ends eligibility, but it sets the loan-level adjustments and the insurance premium, so a difference of a few points can change the monthly cost.
Ratios, reserves, and the finding
The automated finding decides how much of the ratio ceiling a Denver file actually gets: a strong score and reserves earn the room, a thin profile earns less. The reserves are measured in months of the total housing payment and must be documented, not promised.
Second homes, rentals, and financed-property limits
Buying a second home or a rental in Denver on a conventional loan means qualifying on the full payments of every property owned, documenting the rents the agencies allow, and showing reserves for each. The leverage table gives the down payment for each occupancy.
Warrantable or not
A Denver condominium is a conventional purchase when the project passes the agencies’ review: owner-occupancy mix, budget and reserves, litigation, commercial space, single-entity ownership, and insurance. A project that fails is non-warrantable and outside the conforming program; a portfolio lender may still finance it on other terms.
From a Denver pre-approval to keys in hand.
Four steps: the pre-approval, the appraisal, the underwriting, and the closing. The Denver version of each follows.
Pre-approval
A Denver pre-approval is a sizing exercise run through the automated system: the score, the income, the assets, the occupancy, and the price. The finding sets the ratio room and the reserves, and the loan officer puts the pre-approval in writing for the offer.
Contract and appraisal
With the contract signed, the lender orders the appraisal, or accepts the value the automated system offers where a waiver applies. Seller contributions are checked against the cap for the leverage, and a condominium’s project documents are collected for review before the file moves on.
Underwriting
The underwriter verifies what the automated finding assumed: the income, the assets and reserves, the credit and any seasoning, the occupancy, and the property. A manual file follows the lower ratio pair instead. Conditions are issued, documented, and cleared before the approval is final.
Closing
Closing is where the structure becomes a payment: principal and interest, the insurance while the loan is above the threshold, taxes and insurance. The Denver buyer takes the keys, and the lender delivers the loan to the agency it was written for.
A brokerage that prices the whole market.
The case for a brokerage on a conventional loan is candor with numbers: the same file priced across programs, the insurance premium and its cancellation month stated outright, the leverage checked against the occupancy, and the terms in writing.
Several programs, one set of numbers
The comparison printed on this page is run for real on every Denver file: conventional with the insurer’s actual premium beside FHA with its premiums beside VA where eligibility exists, and the written terms follow from it.
The insurance explained before the offer
The premium and its exit are decided by the leverage and the score, and a buyer should know both before signing a contract. Lendmire states the structure for the Denver purchase, shows the payment before and after cancellation, and explains the request and automatic thresholds.
Licensed, consumer-purpose, in writing
What this page shows are the agencies’ parameters and the wholesale overlays; what a specific Denver loan gets is a written set of terms from a licensed loan officer after the review. Lendmire is a broker, never the lender.
Trusted by buyers & families alike.
Denver conventional loan FAQs
Plain answers to the questions Denver buyers ask most about conventional loans, in the order they usually ask them.
What is a conventional loan, and who is it for?
Conventional means conforming: a loan inside the conforming limit, qualified by an automated underwriting system against the agencies’ rules. A Denver buyer applies through a lender or broker, the lender follows the guides, and the agency buys the loan.
How much do I need to put down on a conventional loan in Denver?
Less than most people expect on a principal residence, and it can be a gift from family. The trade for a small down payment is mortgage insurance, which cancels as the balance falls; the calculator shows the Denver payment with it and without it.
What credit score do I need for a conventional loan?
The snapshot shows the floor. More useful than the number is what sits around it: a seasoned derogatory event is inside the rules after its waiting period, a thin file may need manual underwriting with tighter ratios, and the score drives the insurance premium on a Denver loan.
How does private mortgage insurance work, and when does it end?
Mortgage insurance applies when the loan runs above the leverage threshold in the snapshot and is paid monthly as part of the payment. The premium is priced by the insurer on the score and the leverage, inside the published range the snapshot shows. Under the Homeowners Protection Act the borrower may request cancellation at the request threshold on the original value, the servicer must terminate it automatically at the termination threshold, and it ends no later than the midpoint of the term.
What is the conforming loan limit in Denver?
The limit changes every year and differs by county and unit count, so ask a loan officer for the current figure. It caps the loan, not the price: a Denver buyer above it brings a larger down payment or uses a jumbo loan.
Can the down payment be a gift?
The whole down payment can be a family gift on a one-unit principal residence, with the letter and the transfer documented. A Denver first-time buyer with family help and a solid score is a routine conventional file.
What debt-to-income ratio does a conventional loan allow?
It depends on the underwriting path. The snapshot shows the automated maximum and the manual pair; enter income in the calculator to see where a Denver scenario lands against the automated figure.
Can I buy a rental property with a conventional loan?
Rentals of one to four units are eligible. The down payment is larger than on a home the buyer lives in, the finding sets the reserves, and the rental income enters the ratio under the agencies’ rules rather than in full.
What does the appraisal check on a conventional loan?
Value first: the loan is sized on the lesser of the price and the appraised value. Condition second: there is no HUD or VA property standard, but the home must be safe, sound, and marketable, and findings on older homes are settled before closing. Where the automated system offers value acceptance or an appraisal waiver, no appraisal is ordered at all.
How does a conventional refinance work?
Conventional refinances come in two shapes, each with its own leverage in the snapshot. The appraisal, or value acceptance where the system offers it, sets the value; the score prices the loan; and the occupancy sets the limit.
Conventional, FHA, or VA for Denver: compared on your numbers.
A Denver conventional purchase starts with three questions: the score, the down payment, and the occupancy. Lendmire answers them, prices the programs, and writes up the one that fits.
This guide covers Denver — for the statewide guidelines, markets, and scenarios, see Conventional Loans in Colorado, part of Lendmire’s conventional loan program.
Nearby markets in Colorado: Aurora · Lakewood · Arvada · Fort Collins · Colorado Springs
Related programs: FHA Loans · Jumbo Loans · Refinance Loans