Chart of First Home Buyer Programs & Down Payment Grants

THE 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

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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 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


After looking at these options for Colorado first time homebuyers, you can see that homeownership may be within reach... more so than what you may have originally thought.

IMPORTANT: As we mentioned above, don't disqualify yourself from a program that you are interested in just because you aren't sure you meet the requirements. If you have specific questions or want more details, you can always inquire below.

If you are buying your first home or making your next home purchase, it's likely that there are more options available to you than you may know about. However, not all lenders have access to these programs  (especially national megabanks and online lenders), so you will want to make sure the lender you do speak with has access to the programs mentioned above. 

"so you will want to make sure the lender you do speak with has access to these programs"

Likewise, if you have been speaking to a financial organization and they haven't 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. 

TOP 5 FACTS MOST FIRST TIME HOME BUYERS DO NOT KNOW


Working with people and families on the purchase of their first home, we commonly find that most do not know important facts when it comes to buying a home. Below we listed the five most common facts that first time home buyers do not know. 

1. HOME BUYERS DO NOT PAY A REALTOR

Unless one has family in the industry, most first time home buyers would not know that the seller, when listing their home for sale, agrees to pay a fee that covers all Realtor fees (to include your Realtor). In short, as a buyer, you should not expect to pay your Realtor.

NOTE: Some Realtors are charging the buyer an "Admin Fee" or "Broker Fee" (a miscellaneous fee of some sort) but this is not the norm. So you will want to ask up front so you can decide whether you want to pay this fee or seek out a different Realtor.

2. NOT ALL LENDERS HAVE ACCESS TO THE SAME PROGRAMS 

This was mentioned above but it bears repeating since most lenders do not have access to, or even know about the First Time Home Buyer Programs and Down Payment Grant Programs mentioned above. Because they are unaware of these programs, they may reference other home loan options that they refer to as "First Time Home Buyer Programs" (normally requiring at least 3.5% down payment). 

3. HOME SEARCHES ARE NOT CREATED EQUAL 

The home search you use will determine if you are the first to find the perfect home or stand in the back of the line to sift through what is left. Simply put, you will want (NEED) to use a home search that is directly connected the MLS (for accuracy and up to date listings) and avoid the "Big Box" National Home Searches. Most of today's home buyers do not realize that the "Big Box" national home searches only provide a portion of the active listings and the information and listings provided are outdated. Even more frustrating is that if someone submits an inquiry that person's information is sold to numerous agents and lenders that tend to overwhelm those that inquire. 

4. IT ONLY TAKES A 15-MINUTE CONVERSATION TO GET PREQUALIFIED AND ONLY 30 DAYS TO CLOSE ON A HOME 

Most First Time Home Buyers, or home buyers in general, do not know it only takes a 15-minute conversation to get prequalified and there is no cost or fee. Then after being prequalified and the offer is accepted on the home you want, it only takes 30 days (in most cases) to close on the home loan.

NOTE: Depending on the lender, one may be able to close sooner if needed. 

5. THE FIRST MORTGAGE PAYMENT CAN BE UP TO 55 DAYS OUT 

Most do not know that a mortgage is paid in arrears, unlike renting, where one pays upfront each month. For example, when one makes April 1st mortgage payment they are actually paying for March, the previous month. With that and a savvy Relator, one can strategize getting into a home sooner than the lease expiration or even have a month without a rent or mortgage payment. Your Realtor and Lender should be able to explain and assist with this. 

THE NEXT STEPS TO OWNING YOUR HOME


GET YOUR QUESTIONS ANSWERED

It is exciting to know that you have options and that homeownership is within reach but it is understandable to have additional questions about these programs, the home buying process or would like to see how to best accommodate your timeframe and goals. If that is the case, the first step is to get your questions answered. If you need assistance with this, contact us below

KNOW EXACTLY WHAT YOU COULD QUALIFY FOR & WHAT YOUR PAYMENTS WOULD BE

The opportunity these programs offer is incredible but the next obvious question is, 'how much can I qualify for with these programs and what would my payments be?' To answer that, and if you like, we will connect you with a Lender that specializes in the first time home buyer programs listed above. This way you will know exactly what you qualify for, what your payment would be, and what funds if any, would be needed to buy your home.

FIND YOUR PERFECT HOME

The Colorado market is hot and can be competitive, so make sure you are in front of the homes first. To make sure you are in front of every home listed for sale before others, we can set up a private home search for you in the area you prefer that is directly connected to the MLS and that updates every 15 minutes. This way you can be assured you are viewing 100% of the homes listed for sale without having to worry about your information being sold or being overwhelmed with calls and emails.

ENJOY HOMEOWNERSHIP & THE EXTRA PEACE OF MIND WITH A FREE HOME WARRANTY

Relax and enjoy your new home without having to worry about any unexpected repairs. Ashford Realty Group provides a Free 1 Year Home Warranty to all home buyer clients they assist in finding and buying their home. *

INTERESTED IN GETTING STARTED & OWNING A HOME BUT STILL HAVE RESERVATIONS

This is more common than you think. Most first time home buyers are reserved in reaching out for numerous reasons. This could be because they think everything needs to be perfect before they talk with someone, they are worried about being told 'no,' worried they may ask a silly question or not know the right questions to ask, worried about a set back from their past will prevent them from qualifying, think they need to be an expert in home buying, and as mentioned above, think they need excellent credit or a large down payment. All of these reasons are understandable but they tend to keep most aspiring homeowners in the rental market, paying towards someone else's mortgage instead of building equity in their own home. 

We would encourage anyone interested in owning their own home, be it now or in the future, to talk with someone and learn their options. It is highly likely one could talk with a qualified Realtor and Lender and be looking at homes as soon as that afternoon or the next day. 


CONTACT US BELOW IF YOU HAVE ANY QUESTIONS OR INTERESTED IN LEARNING MORE

* The 1 year home warranty provided by Ashford Realty Group only applies when an Ashford Realty Group Realtor® assists the home buyer client in the purchase of their home. When working with a Realtor outside of Ashford Realty Group, regardless if they referred by Ashford Realty Group or not, it is at the discretion of the Realtor representing the home buyer as to whether they will provide a home warranty. Therefore, when working with a realtor outside of Ashford Realty Group the home warranty is not guaranteed.