Affordable loan programs to help you buy your first home with confidence

Buying your first home is exciting but it can also feel overwhelming. The good news? There are first-time home buyer loans in Colorado designed to make the process easier, more affordable, and within reach, even if you don’t have perfect credit or a large down payment.

At Choice Mortgage Group, we help first-time buyers across Centennial, Denver, Parker, Castle Rock, Highlands Ranch, and all over Colorado explore programs that offer low down payments, flexible guidelines, and even down payment assistance.

What is a first-time home buyer?

When applying for a mortgage loan, the exact definition of a first-time buyer might surprise you. A knowledgeable mortgage lender can help determine your status, especially if you are a Colorado first time buyer navigating the local market. You’re considered a first-time homebuyer if:

  • You haven’t owned a home in the past three years
  • You’re buying a primary residence
  • You meet the specific income and purchase price limits required for various first-time homebuyer assistance programs.

Even if you’ve owned before, you may still qualify for valuable homebuyer assistance depending on your unique situation. For example, resources from the Colorado housing and finance authority (CHFA) provide flexible options to help you secure your home.

Loan options for first-time buyers

Here are some of the most common loan programs we offer:

  • FHA Loans – Just 3.5% down, flexible credit, great for new buyers
  • VA Loans – Zero down for eligible veterans and service members
  • USDA Loans – 100% financing for eligible rural and suburban areas
  • Conventional Loans – 3% down options for first-time buyers with good credit
  • Down Payment Assistance Programs – Grants or second mortgages that help cover your down payment and closing costs

Why first-time buyers choose us

  • We help you compare all your loan options
  • We specialize in combining mortgage + down payment assistance
  • We guide you through pre-approval to closing step by step
  • We’re based in Colorado and understand the local housing market

Who qualifies?

You may qualify for a first-time buyer loan if: – You have a credit score of 580 or higher
– You’re buying a primary residence
– You have stable income and manageable debts
– You’re within program income limits (we’ll help you check!)

Even if you’re early in the process or unsure about qualifying, we can help you plan ahead and create a custom buying strategy.

If you’re ready to explore your options, we’ll help you figure out how much home you can afford and how to make the most of your first purchase.

First Time Home Buyer FAQs

What credit score do I need for a first-time home buyer loan?

The minimum credit score depends on the loan type. For an FHA loan, you could qualify with a 580, though 620 or higher is often preferred for better terms. Conventional loans typically require a score of at least 620. Beyond the score, we also look at your income and down payment. For a full breakdown of credit score requirements and other qualifying factors, check out our detailed blog post here.

How do I start the home buying process in Colorado?

The first step is to get pre-approved for a mortgage. This shows sellers you’re serious and helps you understand your budget. I’ll walk you through what documents you need and what to expect.

How much money do I need for a down payment?

Many buyers think you need 20% down, but that’s a myth. First-time buyers can qualify for FHA loans with as little as 3.5% down, or even 3% with some conventional loans. Down payment assistance is also available in Colorado.

Are there programs to help first-time homebuyers in Colorado?

Yes – programs like CHFA, metroDPA, and local city/county offerings provide down payment assistance and low-interest options to help first-time buyers get started.

What’s included in my monthly mortgage payment?

Your monthly payment typically includes principal, interest, property taxes, homeowners insurance, and sometimes mortgage insurance (PMI).

How much can I afford to spend on a home?

This depends on your income, debts, down payment, and credit. I help buyers understand their full picture so they don’t overextend – and so they’re confident in their monthly payment.

How long does it take to buy a home in Colorado?

The home buying process usually takes 30-45 days from the time your offer is accepted, but it can vary depending on the loan type, appraisal, and closing timelines.

What is mortgage pre-approval and why do I need it?

Pre-approval means a lender has reviewed your income, credit, and documents to determine how much you can borrow. It makes your offer stronger and helps you shop within your true budget.

Do I need a real estate agent to buy a home?

It’s highly recommended. A good agent advocates for your best interests, negotiates your contract, and guides you through inspections and closing – and the seller typically pays their commission.

What are closing costs and how much are they?

Closing costs usually range from 2-5% of your purchase price and include things like loan fees, title insurance, appraisal, and escrow. Some programs allow you to roll these into your loan or have the seller help cover them.

Is USDA or FHA better for first time home buyers in Colorado?

USDA loans are often the better option for first time home buyers in Colorado who meet the income guidelines and are purchasing in a USDA eligible area, because they offer zero down payment and lower mortgage insurance. FHA loans can be a strong alternative for first time buyers who are purchasing in more urban areas, exceed USDA income limits, or need more flexibility with credit requirements. A detailed USDA vs FHA loan comparison for Colorado home buyers can help first time buyers understand which loan best fits their budget and home buying plans.