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First Time Home Buyers Programs In Denver

Want a free list of first time home buyers programs in Denver? Call (303) 222-0027 or e-mail contact@firsttimehomebuyersdenverco.com, and we’ll be happy to e-mail you a free list that compares programs.

There are a number of first time home buyers programs available throughout the Denver metro area.

These programs are offered by cities, the state of Colorado, and the federal government, and most are designed to help people with “low to moderate income.” Before you automatically rule yourself out of that category, because you believe that your income might be too high, check with a mortgage broker or lender. In some cases, even individuals with income up to $95,000 can get assistance.

When evaluating first time home buyers programs, it’s important to compare each of the programs.

Interest Rates On The Loans For First Time Home Buyers
What is the interest rate? Even if the interest rate is slightly higher than other types of loans, it might be worth it if it enables you to buy your first home now, rather than waiting. And because interest rates are at all-time lows now, a slight bump might still mean an affordable payment. For example, if you borrow $200,000 at 4% interest, your payment (principal and interest) would be $716. If, on the other hand, the interest rate on your first time home buyers loan is 4.25%, the payment would only go up by $22, to $738.  And, there are a variety of loans to look into including FHA, Conventional, and VA loans.

Down Payment Assistance And Grants For First Time Home Buyers
Most first time home buyers use FHA loans, which only require 3.5% down. And many first time home buyers programs will provide down payment assistance or grants of up to 3%. This means that you’d only be required to pay ½ percent down. On a $200,000 loan, this is just $1,000. Check to see whether you will need to pay back this down payment assistance at some point and/or if there’s a penalty if you prepay the loan (by selling the property or refinancing it before the end of the 30-year term of the loan). There are also 0% down payment loans for first time home buyers.

Closing Costs Assistance And Grants For First Time Home Buyers
Some first time home buyers programs will also provide assistance with closing costs. Closing costs typically equal 1%-2% of the amount of the loan. So, if you’re borrowing $200,000, closing costs could add up to $2,000-$4,000. Closing costs include: loan origination fees, credit reports, property appraisal, title insurance, and lots of other line items. If you’re receiving  closing costs assistance as part of a first time home buyers program, check to see if it needs to be paid back and/or of there’s a penalty assessed if the loan is paid off early.

Credit Score Requirements For First Time Home Buyers
Some first time home buyers programs require a FICO credit score of at least 620, although others will go as low as 580. Check to see what credit score is required, and if your score isn’t high enough, see if there’s anything you can do to repair your credit and raise your score.

Pre-Payment Penalties On First Time Home Loans
As mentioned above, some of the first time home buyers programs have pre-payment penalties, meaning that if you pay off your loan early (which the vast majority of people do – by selling the property or refinancing it), there’s a penalty. You might have to pay back some or all of the down payment assistance and/or closing costs assistance.

Income Restrictions For First Time Home Buyers
Income restrictions are a part of most first time home buyers programs, but these might be more lenient than you think. Before you rule yourself out of being eligible for a program, check with a mortgage company or lender.

For additional information on first time home buyers programs, or to start looking for a home, please call (303) 222-0027, or e-mail contact@firsttimehomebuyersdenverco.com.

Please note: If you’re ready to get started, we’d love to talk to you in a free consultation. And if you decide to work with us, you won’t pay our commission – the seller will!