Programs For First Time Home Buyers In Denver

Dated: 03/04/2019

Views: 385

Image titleWith high home prices and inventory on the low side, it may feel like homeownership in Denver is unattainable, especially for first-time buyers. Fortunately, there are several programs that make homeownership a more attainable goal. These national loan programs - which aren’t restricted to first-time home buyers - make it possible to get a mortgage with lower credit scores or a limited down payment. Read on to see if these programs are a fit for you!

  • Conventional Mortgage
    Best for: Low down payment and limited mortgage insurance premiums
    First-time home buyers can get a conventional home loan with as little as 3% down if the mortgage meets requirements set by Fannie Mae and Freddie Mac. And if you put at least 20% down, you won’t have to pay mortgage insurance. Most lenders require a minimum credit score of 620 to qualify for a conventional mortgage, but a score around 740 earns you the best interest rates.

  • FHA Loans
    Best for: Low credit score and low down payment This is the go-to program for many first-time home buyers with lower credit scores. The Federal Housing Administration allows down payments as low as 3.5% for those with credit scores of 580 or higher. The FHA will insure loans for borrowers with scores as low as 500 but requires a 10% down payment for a score that low. Mortgage insurance is required for the life of an FHA loan and cannot be canceled.

  • CHFA Loan (Colorado Housing and Finance Authority)
    Using a network of participating mortgage lenders across the state, the Colorado Housing and Finance Authority offers purchase and refinance loans, as well as down payment and closing cost assistance. CHFA defines a first-time home buyer as anyone who hasn’t owned or co-owned a home in the past three years. Veterans or repeat home buyers in Colorado can get CHFA loans and assistance if they meet certain requirements.

While home prices in the Mile High are cooling a bit and inventory numbers are creeping up, Denver is still an exceptionally popular destination for movers. Now could be the perfect time to examine what programs can turn your dream of homeownership into a reality. Contact Metrowest today – we’d love to help you start the process!

Blog author image

Robert Passafiume

Dedicated father of 2 gorgeous girls with an amazing blended family of 7. An avid outdoorsman that has come to love everything that our beautiful Rocky Mountains have to offer! With a career in Real ....

Latest Blog Posts

5 Financing Options For First Time Home Buyers

As a first time home buyer, you may think you’ve only got a handful of financing options to choose from when selecting your first property. However, there are actually several options to choose

Read More

Rising Inventory Causing Decrease In Bidding Wars

According to Seattle-based real estate brokerage Redfin, lower-priced properties in Denver can still garner a high amount of attention, but overall, the days when a home in metro Denver would list

Read More

Looking For Homes In Denver Make Mortgage PreApproval Your First Step

So you’ve decided to start looking at homes in Denver. You may think the first step is to hop on the MLS and see what’s available, but do you even know how much house you can afford? That’s

Read More

Despite Lower Interest Rates Affordability Issues Remain In Denver

While falling mortgage rates have put some energy back into existing home sales, new home purchases are taking a hit. According to Robert Dietz, chief economist at the National Association of

Read More