All it takes to buy a home is a credit score of 580 and as little as $1,000 for some first time home buyers loans. Call (303) 222-0027 or e-mail firstname.lastname@example.org for a free list of programs.
Most first time home buyers in Denver don’t use conventional loans, because these typically require a down payment of 5%-20%.
On a $200,000 property, that would mean that you’d need to come up with $10,000-$40,000, plus your closing costs, which is pretty difficult to do on your own.
Down Payments On Conventional Loans
However, if you do have a family member who is willing to give you a gift, that could be applied toward your down payment.
A better option, though, might be an FHA loan, which requires only a 3.5% down payment. And, there are first time home buyers programs in Denver that provide closing cost assistance and down payment grants of up to 3%, which means you might only have to come up with one-half percent. On a $200,000 property, that’s just $1,000.
Using An IRA For The Down Payment
If you’re buying your first home, you can withdraw money from your IRA (to use for the down payment and/or closing costs), without penalty. You can take out up to $10,000. It’s important to note, however, that if you’re taking the money from a traditional IRA (rather than a Roth IRA), you’ll still need to pay income taxes on the money you withdraw. And, you have to use the money within 120 days of receiving the IRA distribution, so you’ll want to carefully coordinate the timing with your mortgage broker or lender.
Reasons To Get A Conventional Home Loan
When first time home buyers do decide to scrape together the 5%-20% down payment and use a conventional home loan, it’s typically because the condo, loft, or townhome that they want to buy isn’t on the FHA approved list of complexes.
For more information on conventional loans or to start looking for your first home, please call (303) 222-0027, or e-mail email@example.com.
Please note: Our free e-mail notifications about available properties are an excellent tool for first time buyers and they can be customized. During a free consultation, we can discuss types of loans you’re interested in along with the benefits of each including conventional loan options.