First Time Homebuyer Programs

As a first-time home buyer, it’s natural to want to be sure you take advantage of every resource out there to make attaining your first home as easy and affordable as possible. As a Denver Realtor, part of my job is to help make sure you feel confident in all parts of your home buying process. Here are some of the most commonly used first-time homebuyer programs in the Denver area.

CHFA – Colorado Housing and Finance Authority

This is, hands down, the most commonly used Down Payment Assistance (DPA) program used. There are minimal barriers to entry, and most lenders are familiar with the requirements. CHFA will grant or lend you (with no interest) the down payment funds in lieu of a higher interest rate. One of the best parts of this program is that there is just one rate regardless of credit score, which makes it very advantageous for those closer to 620. Income restrictions apply.

Metro DPA

This program will lend you the funds for your down payment, and if you stay in the home for at least three years, the down payment loan is forgiven. This program isn’t as widely used as it has a few more restrictions than CHFA but should be investigated as the loan forgiveness feature is very unique. Income restrictions apply.

Affordable Housing Programs

These first-time homebuyer programs require a home to be permanently affordable, meaning a buyer can purchase at a price that is under market value but will continue to be limited in how much they can sell the home for later down the road. I usually recommend clients purchase outside these programs if possible, but they can be very beneficial when location or income parameters are exclusive to an open-market purchase.

VA Loans

VA loans are eligible for veterans meeting certain eligibility criteria. VA loans allow a buyer to purchase with $0 down, competitive interest rates, and no monthly mortgage insurance. In a competitive market, VA loans can be challenging to be accepted due to the stringent appraisal requirements.

USDA Loans

USDA loans make buying a home in an agricultural area easier and more affordable. USDA loans allow for $0 down, good interest rates, and low mortgage insurance. One of the challenges is finding  the combination of an eligible borrower (due to income restrictions) and eligible property (due to location parameters).

The home buying process can be scary, but you don’t have to go through it alone! Together we can make smart real estate decisions to buy your dream home while maximizing your wealth. To get started, you can get in touch with me on my contact form.