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First Time Home Buyer Programs in Colorado – Explained

First Time Home Buyer Programs in Colorado – Explained

Dreaming about buying a first home can be exciting. As for the experience itself, it is often more challenging than first time home buyers expect. Among the many challenges are coming up with a down payment, figuring out a realistic budget, and making all the numbers work. A good mortgage broker can help you figure it out if you are looking to buy in the Centennial State.

For starters, a mortgage broker can turn you on to first time buyer programs available in Colorado. There are quite a few of them. Many are income dependent and have additional requirements, but it is not too hard to qualify for most first-time buyers.

As a licensed Colorado mortgage broker, we can help you find any first-time buyer programs you might be eligible for. We can combine those programs with competitive offers from reputable mortgage lenders who serve Colorado buyers. Does that sound like something that interests you? If so, let’s talk about your plans.

Multiple CHFA Programs Are Available

A good source of first-time buyer programs is the Colorado Housing and Finance Authority (CHFA). The CHFA helps first-time buyers with down payment assistance, closing cost assistance, and even fixed rate mortgages. To qualify for one of their programs, buyers must:

  • Have a credit score of at least 620.
  • Not exceed a 50% income-to-debt ratio.
  • Meet income requirements.
  • Complete a new homebuyer’s course.
  • Meet any and all lender requirements.

CHFA currently offers five programs for first-time buyers. That can change at any time. Programs come and go depending on funding, changes to state law, and other factors.

Assistance With Down Payments

CHFA down payment assistance is offered under two different scenarios. The first scenario is a second mortgage you carry alongside your original mortgage. The second scenario is a grant.

Down payment assistance in the form of a second mortgage can provide up to 4% of the original mortgage. Let us do some simple math: an original mortgage of $100,000 would guarantee a second CHFA mortgage of $4,000. Your combined total would be $ 104,000.

Assistance in the form of a grant can provide up to 3% of your mortgage. Using the previous example, you would have a total of $ 103,000 to spend on a new home.

Do not worry if none of this makes sense to you. One of our jobs as Colorado mortgage brokers is to explain all of this in simple English. We can help you make sense of the numbers when you work with us to arrange your mortgage.

Plenty of Other Programs

We could continue discussing first-time buyer programs to complete this post. However, there are too many for us to discuss in detail here. Needless to say, there are plenty of programs to choose from. The trick is figuring out which programs you qualify for so that we can begin crunching the numbers.

One of the advantages of using a mortgage broker rather than going directly to a bank is the ability to combine first-time buyer programs with a large selection of mortgage products. Remember that banks and credit unions can only offer you the products they carry. But mortgage brokers represent multiple lenders. More lenders equal more mortgage products to choose from.

There are never any guarantees that a mortgage broker can get you into that first home. But mortgage brokers can do things that banks cannot. If you are looking to buy that first home and hope to combine an affordable mortgage with a money-saving first-time buyer program, we can help make it happen.

Reach out by calling us at (303) 779-0591, applying through our loan application, or scheduling a free consultation.

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