UPDATED: October 17, 2019

FOR THE FIRST TIME HOME BUYER IN COLORADO...OR THOSE THAT DO NOT CURRENTLY OWN A HOME


If you would rather own your own home versus renting one, but think that buying a home is financially out of reach, you are not alone.

In fact, studies have shown that two-thirds of those renting today do not know that they can actually buy and own a home.

Because of that, they continue to endure, among other things, rising rents, having to get permission for anything having to do with the house they are renting (painting a wall, having pets, roommates, etc.), and coping with the stress that the property owner may not renew their lease.

HOWEVER, I am going to show you several programs and incentives available for the Colorado first time home buyer (and even for those that have previously owned a home) that make buying a home not only possible but, in most cases, less expensive than renting.

Simply put, these programs open the door to homeownership for thousands of people and families every year that otherwise would still be renting today. 

Two Most Common Myths On Buying A Home

So the two most common myths around buying a home are that there is a large down payment required and that one needs excellent credit before they can consider buying a home. If this is you...don't worry, this is a common but inaccurate assumption.

Those Myths Dispelled

Below, I will show you the numerous down payment grants and mortgage assistance programs available for today's first time homebuyer in Colorado and the extremely reasonable credit scores these programs accept...dispelling those myths.  

It is important to know that not every lender has access to these programs, so you will want to confirm that the lender you contact does have access to the programs listed below before getting into details. 

Your Options Without The Colorado First Time Home Buyer & Down Payment Assistance Programs

Outside of the VA Home Loan, for prior or active duty military, and the USDA Home Loan, for rural areas, the two next best home loan options allowing a reduced down payment would be the Conventional Loan that requires a 3% down payment or FHA Loan with a 3.5% down payment.

Using either the Conventional loan with a 3% required down payment or the FHA loan with a required 3.5% down payment, on a $250,000 home, your required down payment would be $7500 - $8750 (which is a fairly substantial amount of money) versus a $0 - $1000 down payment offered by most the programs listed below.

As you can see, these first time home buyer and down payment assistance programs and getting accurate information about these programs can be the difference between owning your own home or having to rent someone else's...and the stresses that can come with that.   

Find The Loan Program That Can Put You In Your Home

Review the programs and their requirements below to arm yourself with the information you need to pursue buying and owning your own home.

Prefer a quick list of the programs you may be eligible for? [CLICK HERE] for a Free Tool that will provide you a list of every program that could open the door to homeownership. 

It is important to note that many of these Down Payment Grants and First Time Homebuyer Programs are available to those that have previously owned a home.

LOAN PROGRAMS / GRANTS TABLE OF CONTENTS


EXCLUSIVE TO COLORADO & COLORADO COUNTIES  
    CHFA Advantage Loans
    CHFA Down Payment Assistance Grant and Second Mortgage Loan
    CHFA FirstStep and FirstStep Plus Program Loans
    CHFA HomeAccess Loans
    CHFA HomeOpener Loans
    CHFA Preferred Loans
    CHFA SectionEight Homeownership Loans
    CHFA SmartStep and SmartStep Plus Program Loans
   CHFA Mortgage Credit Certificate (MCC)
NATIONAL OR FEDERAL PROGRAMS, LOANS, & MORTGAGE ASSISTANCE FOR FIRST TIME HOME BUYERS

Chart of First Home Buyer Programs & Down Payment Grants


Colorado Housing And Finance Authority (CHFA) Programs

chfa-first-time-homebuyer-programs

Who it's for: First time home buyers, previous homeowners, and qualified veterans

Terms: A 30-year, fixed rate mortgage that can be paired with a 4% downpayment grant or a 5% zero interest second mortgage (silent second) that can help with down payments, closing costs and more

NOTE: Effective April 1, 2019, CHFA will provide a 3% down payment grant or a 4% zero interest second mortgage (silent second).

Qualified areas: Statewide

Minimum credit score: 620

Minimum down payment: $1,000

More details: CHFA offers numerous financing programs and opportunities to accommodate an array of today's home buyers. To be eligible to receive financing, borrowers must have a credit history and take a home buyer education course (in person or available online).  


FHA Metro Mortgage Assistance Plus Program

fha-metro-mortgage-assistance-plus-program

Who it's for: First time home buyers and low and moderate income families

Terms: Down payment assistance and possible eligibility for a grant that will cover up to 4% of a borrower’s 30-year, fixed rate home loan

Qualified areas: Denver, Arvada, Aurora, Bennett, Boulder, Brighton, Broomfield, Castle Rock, Centennial, Commerce City, Dacono, Edgewater, Englewood, Firestone, Golden, Lakewood, Littleton, Parker, Sheridan, Thornton, Westminster and Wheat Ridge

Minimum credit score: 640

Minimum down payment: 0.5% of total mortgage

More details: Borrowers should have a suggested debt-to-income ratio of 45% or less and the home purchased must be a single-family detached home, duplex, condo or townhome.


El Paso County Turnkey Bond Program

fha-metro-mortgage-assistance-plus-program

Who it's for: First time home buyers ("first time home buyers" is defined as someone that has not owned a home in the last three years) 

Terms: A 30-year mortgage loan from participating lenders with a down payment grant of 3% to 4% of the mortgage, with no repayment, needed 

Qualified areas: El Paso County

Minimum credit score: 640

Minimum down payment: 0 to .05% of the sales price

More details: Most participating lenders are found locally in El Paso County, Colorado.   


NEWSED Down Payment Assistance

fha-metro-mortgage-assistance-plus-program

Who it's for: First time home buyers

Terms: Applicants can receive up to $8,000 for down payment, closing costs, mortgage principal reduction and interest buy down in the form of a second mortgage loan.

Qualified areas: The Denver Metro area

Minimum credit score: Varies based on the first underlying loan terms

Minimum down payment: $1,000

More details: Borrowers must complete a first-time home buyer course, conduct a property inspection and purchase a home with a purchase price not exceeding 95% of the median local purchase price.

Colorado Housing Assistance Corporation (CHAC) First-Time Homebuyer Loan

fha-metro-mortgage-assistance-plus-program

Who it's for: First time home buyers

Terms: Buyers are eligible for low-interest, flexible loan terms that provide a second mortgage for down payment and closing cost assistance throughout Colorado.

Qualified areas: Statewide

Minimum credit score: Varies

Minimum down payment: $1,000 or $750, if in a disability program

More details: CHAC assistance must be submitted by the borrower’s first lender after they have completed a first-time home buyer course. If the first mortgage is paid off, the CHAC loan will be due in full.

More details: Borrowers must complete a first-time homebuyer course, conduct a property inspection and purchase a home with a purchase price not exceeding 95% of the median local purchase price.


VA Home Loan

fha-metro-mortgage-assistance-plus-program

Who it's for: First time and non-first time homebuyers that are prior or active duty military members or veterans

Terms: Provides 100% financing, eliminating the need for a down payment

Qualified areas: Nationwide

Minimum credit score: 580, but most lenders require a 620

Minimum down payment: $0

More details: All eligible veterans and active duty military members can use this loan, regardless of whether they have previously purchased a home or used this loan benefit.       [Learn more about the VA Home Loan here]


U.S. Department of Agriculture (USDA) Rural Development Loan Guarantee

fha-metro-mortgage-assistance-plus-program

Who it's for: First time and non-first time home buyers purchasing in a designated rural area

Terms: Provides 100% financing, eliminating the need for a down payment

Qualified areas: Nationwide, in designated rural areas

Minimum credit score: 620

Minimum down payment: $0

More details: To be eligible, borrowers must not have been previously suspended from participation in federal programs and should work with a lender to ensure that their desired address is in the designated area.   


Taking Advantage Of A First Time Homebuyer Program


If after you have reviewed these programs and their eligibility requirements, and feel you do not qualify, I would still strongly encourage you to talk with a qualified and trustworthy LOCAL lender that has access to these programs. They can guide you through these programs and the options that you may have overlooked.

It is important to know that not every lender has access to these programs, so you will want to confirm that the lender you contact does have access to the programs listed above before getting into details. 

Likewise, if you have been speaking to a lender or financial organization and they haven't already mentioned these incredible financing options it is likely they do not offer them. If that is the case, try speaking with a local Realtor ® who can provide you with local lender recommendations that do offer these down payment grants and mortgage assistance programs. 

Your Realtor can be a valuable resource, not just for houses for sale in the Colorado Springs and Denver area, but to also introduce you to the right lender that has access to these programs. 

I hope this information can help put you in your Dream Home sooner than later but if you have additional questions feel free to reach out below. - We do our best to respond the same business day.

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