Lakewood, CO FHA Loans in 2026: $23,268 Down on the $664,805 80228 Median, and Insurance for the Loan’s Life

Oct 27

Quick answer: An FHA loan on the $664,805 Lakewood 80228 median takes $23,268 down at 3.5%. Mortgage insurance then adds about $299 a month to $4,400 in principal and interest, and under HUD's premium table it lasts for the life of the loan unless you put at least 10% down.

By Nick Ahrens, Colorado real estate broker license FA.100104470, eXp Realty, LLC

Lakewood buyers with a small down payment keep asking me the same thing: is an FHA loan worth it if the mortgage insurance never comes off?

To answer it, I priced an FHA loan on Redfin's Lakewood zipcode medians using HUD's own premium rules and loan limit, then set it next to a 20% down conventional loan. Treat every figure as a planning estimate, not a loan quote.

How much cash does an FHA loan take on the Lakewood 80228 median?

About $23,268 for the 3.5% down payment on $664,805, plus closing costs that this guide does not price.

Price: $664,805, Redfin's 80228 median sale price for the three months ending September 2026 (all home types; 125 homes sold, down 4.9% year over year, a median of 26 days on market)
Down payment at 3.5%: $23,268, leaving a base loan of $641,537
Upfront mortgage insurance at 1.75%: $11,227, which can be paid in cash or financed; it is financed here, for a total of $652,764
Principal and interest: about $4,400 a month on a 30-year fixed loan at 7.13%
Annual mortgage insurance at 0.55%: about $299 a month in year one, figured on the starting balance
Total before property tax and homeowners insurance: about $4,699 a month

HUD's FHA Myths vs. Facts sheet puts FHA's minimum required investment at 3.5% in most cases and says it may come from gifts, second mortgages or down payment assistance grants as well as your own funds. Ask your lender which gift or assistance funds it accepts before you count on them.

The 7.13% is the Mortgage Bankers Association's average contract rate for 30-year FHA loans in its survey for the week ending October 16, 2026, with 1.15 points. MBA reports its rates for 80% loan-to-value loans, so a 3.5% down quote can come in higher or lower.

What does FHA mortgage insurance cost, and when does it stop?

It costs 1.75% of the base loan at closing plus an annual premium of 0.50% to 0.75%, and with less than 10% down the annual premium runs for the whole mortgage term.

These rates come from HUD Mortgagee Letter 2023-05, effective for case numbers endorsed on or after March 20, 2023. For a 30-year loan with a base amount of $726,200 or less:

More than 95% loan-to-value (for example 3.5% down): 0.55% a year, for the mortgage term
Above 90% and up to 95% (for example 5% down): 0.50% a year, for the mortgage term
90% or less (10% down or more): 0.50% a year, for 11 years
Base loans above $726,200 pay 0.70% to 0.75% a year on the same schedule

On a Lakewood house at 3.5% down, the base loan passes $726,200 once the price goes above about $752,539. Above that line the annual rate rises from 0.55% to 0.75%.

My read: the upfront premium is paid once, in cash or added to the loan. The annual premium is the one to plan around, because with a small down payment it does not fall off as you build equity.

How does FHA at 3.5% down compare with a conventional loan at 20% down?

On the 80228 median, FHA runs about $1,046 a month more, about $4,699 vs. $3,653, but the conventional loan needs $132,961 down, $109,693 more cash at closing.

Conventional at 20% down: a $531,844 loan, principal and interest about $3,653 at Freddie Mac's 7.32% average for October 22, 2026, with no mortgage insurance
FHA at 3.5% down: a $652,764 loan including the upfront premium, about $4,400 in principal and interest plus about $299 of mortgage insurance

The two rates come from different surveys. In MBA's own survey for the same week, conforming 30-year loans averaged 7.41% with 0.75 points, against 7.13% with 1.15 points for FHA loans, which made up 16.3% of all applications that week.

For a buyer who could put 20% down, conventional wins on the monthly cost. FHA is for the buyer who would otherwise wait years to save $132,961.

Does putting 5% or 10% down on an FHA loan change the insurance?

At 5% down the annual rate drops to 0.50% but still lasts the life of the loan, while at 10% down the premium ends after 11 years.

5% down ($33,240): loan $642,617 with the upfront premium, principal and interest about $4,332, mortgage insurance about $268, about $4,599 a month
10% down ($66,481): loan $608,795, principal and interest about $4,104, mortgage insurance about $254, about $4,357 a month

Over a loan kept for 30 years, the annual premium adds up to about $73,459 at 3.5% down and about $65,743 at 5% down, vs. about $31,399 at 10% down, where it stops after year 11. I figured those totals on each year's starting balance at 7.13%, and the totals shrink if you sell or refinance sooner.

Does Jefferson County's 2026 FHA limit cover Lakewood prices?

Yes: HUD's 2026 FHA limit for a single-family home in Jefferson County is $862,500, above every Lakewood zipcode median I checked.

In HUD's FHA mortgage limits lookup, Jefferson County sits in the Denver-Aurora-Centennial area with a $750,000 median sale price on HUD's list, a single-family limit of $862,500 and a two-unit limit of $1,104,150, all effective January 1, 2026. The national FHA floor is $541,287 and the high-cost ceiling is $1,249,125.

So the limit is not what stops most Lakewood FHA buyers. The monthly payment and the annual premium tier above $726,200 matter more.

What does a 3.5% down FHA loan cost in each Lakewood zipcode?

At 7.13%, principal, interest and mortgage insurance run from about $3,745 a month in 80232 to about $5,088 in 80215, the range across the five zipcodes I compared. The 3.5% down payment runs from $18,545 in 80232 to $25,193 in 80215.

80232, $529,844 median: about $3,745 a month
80227, $532,094 median: about $3,761 a month
80226, $534,843 median: about $3,781 a month
80228, $664,805 median: about $4,699 a month
80215, $719,789 median: about $5,088 a month, with a $694,596 base loan still under the $726,200 tier

All five medians are Redfin's for the three months ending September 2026 and mix condos, townhomes and houses. I left 80235 out because only 17 homes sold there and its median moved 25.1% in a year, too thin a sample for a payment estimate.

Property tax and homeowners insurance are extra in every figure here, whichever loan you pick. Look up a specific house's tax area in the county's TAG search before you settle on a monthly budget.

Where should a Lakewood FHA search start?

Start with the zipcode whose FHA total fits next to your other monthly debts, then check the price band for your loan tier.

Lakewood zipcodes: 80232 Lakewood houses for sale from $600K, 80227 Lakewood houses for sale from $600K, 80226 Lakewood houses for sale from $600K, 80228 Lakewood houses for sale from $600K and 80215 Lakewood houses for sale from $600K
Citywide: Lakewood single-family homes for sale from $600K
Lakewood price bands: Lakewood houses from $600K to $800K and Lakewood single-family homes from $800K to $1M
Wider Front Range price bands with no city limit: Front Range houses from $600K to $800K and Front Range houses from $800K to $1M
Planning: my first-time buyer plan for the west metro, Front Range buyer costs checklist, Lakewood 80226 vs. 80232 first-home payment comparison and first-home cash to close guide

Should you use an FHA loan to buy in Lakewood?

Use one when a small down payment is what stands between you and owning, and plan from day one for the premium to stay as long as the loan does.

Use FHA at 3.5% down if:

You have $18,545 to $25,193 for the down payment on one of these medians, can carry the payment with the premium included, and would rather buy now than save for years

Stretch to 10% down on FHA if:

You can reach about $66,481 on the 80228 median and want the annual premium to end after 11 years

Price a conventional loan too if:

Your lender says you qualify for one at 5% to 20% down, so you can compare the two full quotes side by side

Keep saving for now if:

About $4,699 a month before tax and insurance would leave no room in your budget

Broker view: "When a Lakewood buyer brings an FHA approval, I put the down payment, the upfront premium and the monthly insurance on paper for each house we tour, so the premium is a known cost before the offer, not a surprise at closing." - Nick Ahrens, eXp Realty, LLC

What this guide does not cover: property tax, homeowners insurance, HOA dues, closing costs and lender fees, credit score rules, debt-to-income limits, FHA appraisal and property standards, condo project approval, VA and conventional mortgage insurance pricing, CHFA and other assistance programs, refinance timing, and rate changes after the dates shown.

Sources: Redfin 80215, 80226, 80227, 80228, 80232 and 80235 housing market pages (three months ending September 2026, checked October 27, 2026); HUD Mortgagee Letter 2023-05 (annual and upfront MIP); HUD FHA mortgage limits, CY2026, Jefferson County, CO; HUD FHA Myths vs. Facts; Mortgage Bankers Association Weekly Mortgage Applications Survey release of October 21, 2026 (week ending October 16, 2026); Freddie Mac PMMS (October 22, 2026).

Want your own number? Send me your down payment, the zipcode you like and your lender's FHA rate, and I will run the full FHA payment on Lakewood houses before you book a showing. Call or text 949-230-3625, or request a tour.

Frequently asked questions

How much do I need down for an FHA loan in Lakewood, CO?

HUD's minimum is 3.5% in most cases. On the $664,805 Lakewood 80228 median that is $23,268, and on the $529,844 80232 median it is $18,545, before closing costs.

Does FHA mortgage insurance ever go away?

Only if you put at least 10% down, and then it ends after 11 years. With 3.5% or 5% down, HUD's annual premium lasts for the full mortgage term, so it ends only when the loan is paid off, refinanced or the house is sold.

What is the FHA loan limit in Jefferson County for 2026?

$862,500 for a single-family home, per HUD's 2026 FHA limits for Jefferson County in the Denver-Aurora-Centennial area. Every Lakewood zipcode median I checked sits well under it.

Is an FHA loan cheaper than a conventional loan in Lakewood?

Not month to month against 20% down. On the 80228 median, FHA at 3.5% down runs about $4,699 in principal, interest and mortgage insurance vs. about $3,653 for a 20% down conventional loan, but FHA needs $109,693 less cash up front.

Nick Ahrens is a Colorado real estate broker (license FA.100104470) with eXp Realty, LLC, helping buyers and sellers across Denver's west metro. Call or text 949-230-3625, or request a tour.

Nick Ahrens