Making the decision to buy your first home is a big deal. It means preparing to spend thousands of dollars to buy a house you can turn into your dream home. With the average price of homes in Colorado coming to $397,820, coming up with the money you need on your own can be difficult. Does that mean it’s impossible? Absolutely not! There are many first time home buyer incentives that Coloradoans can take advantage of.
FHA loans are one of the best first time home buyer incentives currently available. They’re a type of mortgage loan that borrowers with low credit can easily qualify for. As long as you have a credit score of at least 580, you’ll likely qualify for the loan. Even better, FHA loans allow you to make small down payments and borrow larger amounts.
CHFA Down Payment Assistance
The more money you can put toward a down payment, the less you’ll have to borrow and the smaller your monthly payments will be. The CHFA down payment assistance first time home buyer incentive allows Coloradoans to get a maximum of 3 percent of the mortgage amount as a grant for your down payment. The best part is that the grant doesn’t have to be repaid. The only caveat is that you have to use a CHFA mortgage loan to finance your home purchase.
CHFA FirstStep Loan
This first time home buyer incentive allows Coloradoans without credit scores to still qualify for a mortgage loan. This means you’ll be able to get into a house even if you’ve never established your credit history. Keep in mind that this program typically has higher interest rates than conventional mortgages. It helps off-set the risk for the lender since they have no way of verifying your likelihood of repaying the loan.
CHFA Second Mortgage Loan
If you’re already using a CHFA mortgage to finance the purchase of your house, you may be able to enroll in the second mortgage loan grant program to help cover your down payment amount. You’ll get up to 5 percent of your mortgage amount as a second loan on top of your primary mortgage.
Get Guidance Today
If you’re trying to buy your first home, don’t try to navigate the loan process on your own. Reach out to our team and let us help you understand your options. We’ll help you find the best first time home buyer incentive and loan for your situation.