Types Of Loans For First Time Home Buyers In Denver

Please call (303) 222-0027 or e-mail contact@firsttimehomebuyersdenverco.com, and we will be happy to e-mail you a free list of home loan options, including FHA, VA and first time home buyers programs.

In order to make it easier for first time home buyers to get a loan, the federal government and the state of Colorado offer first time home buyer loans.

Some first time home buyers loans include the following:

• lower down payments or no down payments
• limited fees and closing costs
• possibility of deferring payments

Below are the primary types of loans available for first time home buyers.

FHA Loans For First Time Home Buyers
FHA loans are loans that are insured by the Federal Housing Administration. These types of loans are offered through most mortgage brokers in the Denver metro area, but not all types of properties in Denver qualify for FHA loans.

For houses and duplexes, the properties need to be in good shape. And for condo buildings, at least 80% of the units in the building need to be owner-occupied. We’re familiar with most of the condo and townhome complexes in Denver and can help steer you toward buildings that will meet the criteria for FHA loans.

The good news about FHA loans is that the down payment can be as low as 3.5%. FHA requires a FICO credit score of 580 or above to qualify for an FHA loan, but most Denver mortgage brokers and lenders would prefer a credit score of 620 or 640 or above.

With FHA home loans, you’ll need to buy a primary residence – not one that you will live in as a second home or rent out.

VA Loans For First Time Home Buyers
VA loans are available for active military, veterans, reservists, and National Guard members. To obtain a VA loan as a first time home buyer, you first need to get a “Certificate of Eligibility” from the Veterans Affairs bureau. Once you have that certificate, most Denver area mortgage brokers and lenders will be able to provide you with a VA home loan.

With VA home loans, you need to be buying a primary residence – not one that you will live in as a second home or rent out.

Just like with FHA loans, only certain types of properties will be eligible for a VA loan. For houses and duplexes, the properties need to be in good shape. And in our experience with working with buyers who are financing with VA loans, only about 10% of the condo and loft buildings in the Denver metro area meet the criteria for VA loans.

The great news about VA home loans is that the down payment is 0%. That’s right – you can buy your first home without having to put any money down! There’s also no penalty for paying off your mortgage early (which many people do when they sell or refinance their first time homes).

The minimum FICO credit score for VA loans is 580.

Conventional Loans For First Time Home Buyers
Conventional loans typically require that you put 10% or 20% down. On a $200,000 condo or house, that means you would have to come up with $20,000-$40,000, plus closing costs (which typically come in at 1%-2% of the loan. By using a conventional loan, you’re likely to get the lowest interest rate.

We know the Denver market, and we also work closely with several mortgage companies who have first time home buyers programs available. We’d love to help you find and buy your first home!

To find out more information about the types of loans for first time home buyers, to compare loans, or to start looking for a home, please contact us at (303) 222-0027, or e-mail contact@firsttimehomebuyersdenverco.com.

Note: A great first step would be to contact us for a free consultation! We love to work with first time home buyers. We help buyers throughout the Denver metro area, in all price ranges. And you don’t pay our commission – the seller does!