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Affordability

How Much Income Do I Need to Buy a $500,000 Home in Denver?

A rough answer, plus the assumptions behind it — because your real number depends on your full financial picture.

Using an illustrative 6.75% 30-year rate, a 20% down payment ($100,000), and estimated Denver-area property tax and insurance, a $500,000 home runs approximately $2,900–$3,000 per month for principal, interest, taxes and insurance (before any HOA dues).

Loan amount (20% down)$400,000
Est. principal & interest~$2,595/mo
Est. property tax~$210/mo
Est. home insurance~$145/mo
Est. total monthly payment~$2,950/mo

Lenders typically want your total housing payment (plus other debts) to fall within roughly 28%–36% of gross monthly income, depending on the loan program and your overall profile. Applying that range to the payment above suggests a gross income of roughly $98,000 to $126,000 per year — narrower if you carry significant other debt, wider if you don't.

Put less down and the required income shifts: a smaller down payment means a larger loan and added PMI, which raises the qualifying income somewhat even at the same home price.

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