NICK WEBB
REAL ESTATE
Call or Text Anytime
720.272.9725
WHAT IS
DOWN PAYMENT ASSISTANCE?
If you're like me, you might have grown up thinking that you absolutely need 20% down to buy a house. This couldn't be further from the truth. You can get a great loan for as little as 1% down.
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Lets find out how:
OPTION 1:
CHFA (COLORADO HOUSING and FINANCE AUTHORITY)
This is an awesome state sponsored program designed for First Time Home Buyers.
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** They will straight up give you money towards a down payment (in the form of a grant) that you do NOT have to pay back!
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** This grant brings out of pocket down payments to as low as 0.5%!
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** FHA or Conventional Loans are available with competitive interest rates.
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** Must meet a minimum credit score (typically above 650).
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** Income limit is $80,000 a year (you cant make more than that and qualify).
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** Must complete one time homebuyers education class
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** Interest rates will be slightly higher compared to 20% down.
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** Some loans are subject to PMI (private mortgage insurance) that cost a bit extra every month.
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OPTION 2:
FHA or FEDERAL HOUSING AGENCY
This is a great Federal Government Program to help people buy a home without a large down payment.
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** Typically only a 3.5% down payment! (can be a gift).
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** Can be easier to qualify for (in case you have less than perfect credit).
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** Lending maximums by county (you can only loan a certain amount of money).
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** Minimum credit score requirements.
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** Must provide for financial information than other types of loans.
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** Loans are subject to PMI (private mortgage insurance) that cost a bit extra every month.
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** Tend to be very picky about needed repairs on the house. They need to be fixed before loan can close. (i.e. peeling paint and or siding on a house must be fixed)
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** Interest rates will be slightly higher compared to 20% down.
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** Notoriously slower to process than conventional loans (you are dealing with the government after all :)
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OPTION 3:
PRIVATE MORTGAGE COMPANY'S
DOWN PAYMENT ASSISTANCE PROGRAMS
These can be harder to find, however these down payment assistance programs can be absolutely stellar. Very similar to CHFA but often with better interest rates!
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Our friends at GUILD MORTGAGE offer an awesome program until this December!
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Example only (each program is different
** Only 1% down payment! (or otherwise low payments)
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** Give you a grant that you don't have to pay back!
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** May require fewer qualifications than CHFA of FHA.
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** Income limits usually apply.
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** Credit score minimums usually apply.
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** Must complete one time homebuyers education class.
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** Interest rates will be slightly higher compared to 20% down.
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** Harder to find and can be limited time offers.
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** May require Private Mortgage Insurance.
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