I’m Ben Yost, a Colorado mortgage broker with 25+ years of experience, and this is the question almost every first-time buyer asks me. So let me give you the real answer.
The short answer
In Colorado in 2026, what you can afford is set by the monthly payment your budget is comfortable with — not the big “approval” number a lender hands you. As a rule of thumb, keep your total house payment (principal, interest, taxes, insurance) around 28–35% of your gross monthly income, then back into a price from there.
With 30-year rates sitting in the mid fives and townhomes around $389,900 in the metro, a lot of Colorado buyers can afford more comfortably than they expect.
It’s the payment, not the price. That one line changes everything.
A real example from Aurora
I had a couple in Aurora — first-time buyers, a little nervous — combined income right around $95,000. They’d been browsing Zillow, saw the Denver metro median sitting near $610,000, did some quick scary math, and basically talked themselves out of buying. “We can’t afford this.”
That’s the trap. They were shopping the median price instead of their payment.
So we flipped it. We started with what felt good every month, not what a calculator said they were “approved” for. Here’s what we actually did:
- Looked at a ~$400,000 Aurora townhome (condos and townhomes are running around $389,900 right now — way more attainable than that $610K single-family median).
- FHA loan, 3.5% down — about $14,000, not the mythical 20% ($80K) they thought they needed.
- With rates in the mid fives, the principal and interest landed in a range that fit their budget. Add taxes (Colorado property taxes are low, by the way), insurance, and mortgage insurance, and the all-in payment fit inside their comfort zone.
They went from “we can’t” to “wait, that’s it?” in one conversation.
What “how much can I afford” really depends on
It comes down to four levers:
- Your income
- Your monthly debts (car, student loans, credit cards)
- Your down payment
- The interest rate
Lower your debts or nudge the rate down, and your buying power goes up — without you earning another dollar. That’s the part most folks don’t realize they can control.
Is now actually a decent time to buy in Colorado?
Real talk: it’s a buyer’s market right now. There are about 4,800 more sellers than buyers in metro Denver — a 42% gap — and 38% of June listings took a price cut.
That means room to negotiate, room to ask for seller concessions toward your closing costs, and less competition. Pair that with rates easing and your payment can land lower than the sticker shock suggests.
Nobody writes a check for an interest rate — they write a check for a payment.
How do I find MY number?
Don’t guess. We run it backward from your comfortable monthly payment, factor in your real debts, and match you to the loan and any down payment assistance that fits. I shop 160+ investors, so the rate and structure get built around your situation — not the other way around.
What to do next
If you’re even thinking about buying in the next 6–12 months, let’s map out your real “afford” number — no pressure, just clarity. Call or text 303-587-4297, or fill out the contact form and tell me where you’re at.
Go get ‘em.
Ben Yost — Colorado’s Lending Expert, 25+ years • 160+ investors • 30+ DPA programs. Equal Housing Lender. This is general information, not a commitment to lend; terms and rates depend on your individual situation and are subject to change.
Related reading: How much money do you actually need to buy a house in Colorado? · Colorado down payment assistance programs · FHA vs. conventional loans in Colorado · Denver metro home buying guide. See all loan programs and services.
