Colorado Mortgage Overview
Colorado, the 'Centennial State' earned its
nickname because it joined the union 100 years after the Declaration of
Independence. It's also known as the 'Colorful State' and is the reason many
first-time homebuyers move here — the majestic scenery including mountains and
plains can't be beat. Whether you love sunshine, snow, skiing, or hiking,
there's something for everyone in Colorado.
The median home value in Colorado is around
$343,300 and over 65 percent of the homes are owner occupied.
Thinking about living in Colorado? Here are
your home loan options:
Colorado conventional loans
great credit and low debt levels can take advantage of the low conventional
loan rates. This non-government backed loan offers great terms, but without a
20 percent down payment, you'll pay Private Mortgage Insurance. Fortunately,
you can cancel it once you pay your balance down to 80 percent of the home's
Colorado FHA loans
Borrowers with slightly
lower scores or higher debt-to-income ratios find great rates with Colorado FHA
loans. The FHA doesn't underwrite or fund these, loans, you'll still use a
lender, but you'll have more flexible guidelines including a 580 credit score
minimum and 3.5 percent down payment. If you have a credit score between 500 -
579, a 10 percent down payment will get your foot in the door.
Colorado VA loans
The VA department rewards
those who served our country with a 100 percent loan program. Colorado VA loans
have the most flexible guidelines, making it easy for veterans to buy their
first home. With just a 620 credit score and a 50 percent debt-to-income ratio,
you could be on your way to owning your first home.
Colorado USDA loans
If rural living is
something you enjoy and you have low to moderate-income, the USDA loan is
another 100 percent funding option. You'll need a 640 credit score and
debt-to-income levels of 41 percent or lower to qualify.
First-Time Homebuyer Programs in Colorado
The Colorado Housing Finance Authority helps
10,000 people a year buy a home in Colorado. With a median loan amount of
$279,000, they help borrowers with these programs:
Down payment assistance grant
Receive up to 3
percent of your first mortgage with no repayment required
Second mortgage loan
Receive up to 4 percent
of your first mortgage to help with down payment and closing costs. No payments
are required until you sell the home or refinance the loan.
Borrowers with at least a 620
credit score, and who don't make more than the CHFA income limits may qualify
for a CHFA 30-year fixed-rate mortgage with down payment assistance. Borrowers
must contribute at least $1,000 of their own funds and prove they'll live in
the home as their primary home to qualify.