First Time Home Buyer Programs
There are many First Time Home Buyer programs available right now with low or no down payments and ways to finance closing costs. There is no better time to take advantage of these programs to buy a home in Denver or other parts of Colorado, and these programs can be a great way to get started in home ownership.
FHA Home Loans are one of the most utilized First Time Home Buyer programs in the market. Currently, FHA requires a 3.5% down payment and rates are extremely low on this program. Credit standards are a little more lax on this program than on a conventional home loan, so many first time home buyers use this program. FHA loans can be combined with down payment assistance programs such as CHFA or the Denver Metro Assistance programs to help minimize your cash investment.
VA offers a home loan benefit to active and honorably discharged military veterans. This program still allows financing up to 100% for a First Time Home Buyer with no mortgage insurance. You may be subject to a VA Funding Fee, which is traditionally financed into your mortgage. We can help you determine your eligibility for a VA loan and whether or not you will have a VA funding fee, and how much the funding fee will be.
If you are located in a rural area or small town, this is a great program for a First Time Home Buyer to take advantage of. Like VA, USDA allows for up to 100% financing. There is also a funding fee assessed with USDA which can be financed. There is also monthly mortgage insurance with a USDA loan, but it is at a lower rate than other programs. USDA offers very low 30 year fixed rates.
Down Payment Assistance Programs:
Down payment assistance programs are common for first time home buyers to utilize. These programs minimize the out of pocket cash required to buy a home. Some programs still require a minimum investment from the home buyer; for example, CHFA requires a minimum $1000 cash investment.
The two most common down payment assistance programs in the Denver Metro area are CHFA (Colorado Housing Finance Authority) and the Denver MMA (Metro Mortgage Assistance) Program. Although both programs allow for a lower investment in your home, interest rates and closing costs on these programs are higher, so you must be prepared for this and understand the costs involved vs the benefits.
Besides these low down payment programs, there are many other more traditional programs that may be better options. For a FREE consultation, or to get pre-approved, visit our online First Time Home Buyer purchase assistant to get started.