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Make sure to consider both federal and state options when conducting your mortgage search. Suzanne De Vita is the mortgage editor for Bankrate, focusing on mortgage and real estate topics for homebuyers, homeowners, investors and renters. Home buyers do not have to be a first-time home buyer to qualify. The repayment of the loan balance is deferred until you pay off your first mortgage or sell or refinance the home.
“Minimum” down payment assumes 3% down on a conventional mortgage with a minimum credit score of 620. Most lenders use a debt-to-income ratio and do not like this ratio to exceed 43%, depending on the program. For example, let’s say that you bring in a gross paycheck of $4,000 monthly . Your total amount of debt, including the mortgage, credit card payments, and car payments is $1,750. Divide the debt by the income and you get a DTI ratio of 43%.
Bankrate
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For example, if you are financing $200,000, you may qualify for up to $6,000. The median listing price in Aurora was $460,000 in March 2022, according to Realtor.com. The median listing price in Colorado Springs was $435,000 in March 2022, according to Realtor.com.
CHFA HomeAccess
While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. PMI is typically required by the bank if you put less than a 20% down payment on your home. The cost of PMI is usually between 0.5% and 1% of the total loan amount.
In addition to the mortgage, you can also qualify for down payment assistance programs. These programs give you funds, either through a grant or a second loan, that help cover upfront costs such as the down payment and closing costs. Homebuyers can also utilize CHFA down payment and closing cost assistance or second mortgage grants to make upfront costs even more affordable.
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In order to save half off your home, it must be located within a HUD-designated “Revitalization Area.” You also must agree to make the home your primary residence for at least the next three years. The good news is that if you meet this term, you can sell the home and hold onto any equity and profit once the three years are up. Chang focused her articles on mortgages, home buying and real estate.
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CHFA FirstStep Program
Aurora’s Home Ownership Assistance Program offers loans of up to $10,000 or the minimum down payment required for your mortgage, whichever is the less. And you must chip in at least 1% of the home’s purchase price from your own funds. If you’re a first-time buyer in Colorado with a 20% down payment, you can get a conventional loan — likely with a low interest rate and no private mortgage insurance . No advertisement or solicitation from firsthometime.com is meant to be a mortgage brokering activity or mortgage lending activity. All brokering or lending activities can only be completed by licensed real estate professional.
All the organizations we’ve listed above should provide advice freely to any first-time home buyer in Colorado. Half your DPA loan is forgiven over the first five years of your mortgage. But the other half remains repayable for the full 30 years and is only forgiven when you make your last payment on your mortgage.
Just remember that you’ll need to meet CHFA and HUD income, credit score, and profile requirements to qualify for these lowered taxes and increased savings. You must be a trustworthy borrower making median or below-median income. In addition, you cannot have owned or co-owned a home in the last three years.
In other words, if you’re taking out a $200,000 home loan, you’ll owe an additional $166 monthly payment for PMI. CHFA, CHAC, and NeighborhoodLIFT all require applicants to take a home buyer education class. But most first-time home buyers in Colorado or elsewhere should welcome all the knowledge they can absorb. You’d have to repay that loan in full when you sell, refinance, or finally pay off your first mortgage. Still, you don’t have to make any monthly payments in the meantime. DPA grants are intended to help home buyers not only save money upfront, but also have funds to fill and improve their new home and pad their savings accounts for the future.
Bankrate follows a strict editorial policy, so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. Bankrate follows a strict editorial policy, so you can trust that we’re putting your interests first.
Buyers must have qualifying income, meet at least 600 credit score and occupy as primary residence. Specialized grants are available that allow first-time home buyers to get into their home without saving up a large down payment. When you’re ready to buy, make sure you get rate quotes from at least three to five mortgage lenders.
