This article is to clear the smoke and mirrors many people who are looking to buy a home usually question right away. Do you have any "no money down" programs? Are there Denver loans for "first time home buyers"? Any FREE money out there I can get?
Answer: YES, there are down payment assistance programs.
The answer to all of these questions is YES, however it is not as straightforward and simple as you may think, and you need to align with a mortgage professional to assist you in this process so you don't give up, or lose your enthusiasm for this amazing benefit. I will break down all of the choices in Colorado for these programs in this one blog to make it simple for everyone looking to buy a home with little to no money down.
Colorado and Housing Finance Authority
200% Increase in Loan Production from 2014-2016 and funded $1.3 billion in loans in 2016. Yes. BILLION.
Credit Scores as low as 620 with up to 4% GRANT with no REPAYMENT. Example $400,000 home purchase, CHFA will issue 4% GRANT which is $16,000 to help you purchase a home.
Will need at least $1000 into loan transaction from your own funds.
Millennials represent the largest pool of buyers in 2015 accounting for 57% of all production. Who says they aren't buying?
Manufactured, Modular, Single Family, Condominium, and PUD property types allowed.
NO OCCUPANCY requirements on CONDO purchases, unlike FHA which requires that 51% of the development be owner occupied.
YOU are ALLOWED to have a property currently, and buy a second property as owner-occupied with the CHFA benefit.
NO Mortgage Insurance and LOW MI options at reduced rates.
Will do DEED restricted properties.
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What are the requirements, and how do I get started?
The first requirement would be to fill out a loan application with a CHFA Mortgage Professional who is licensed to work with CHFA in the state of Colorado. You can find our Denver loans application at this link, where you can BEGIN THE LOAN PROCESS.
After your loan officer has successfully finished your loan application and run your credit report, calculated your debt to income ratio based on your current employment, they will be able to determine exactly how much you qualify for in terms of home purchase using the CHFA program.
If you do qualify for the CHFA program you will need to do an In-Person CHFA Homebuyer Education Class which will take up to 4-5 hours, and upon completion, you will be given a certificate which is good for 12 months.
About the Author
Brian Quigley has been in the Denver mortgage industry since 2003. Customer satisfaction has been his top priority while guiding clients through the home loan qualification process. He is proficient in all types of mortgage financing including FHA/VA, Conventional, USDA, Jumbo, Portfolio, 1031 Exchanges, Reverse Mortgages, Refinancing, Construction loans, and FHA 203K loans.