Buying your first home does not have to be an overwhelming experience that will leave you strapped for cash for the rest of your life. With the right first home buyer loan in Colorado, you should find the experience simpler and more fulfilling. Here are the top programs you can consider if you’re buying a house for the first time:
- Down payment assistance – At times, a homebuyer could forget the down payment when budgeting for their dream home. In that case, down payment assistance is available to them. It is an affordable program aimed at a low- to moderate-income first-time home buyer Colorado. It will provide a forgivable loan for the first five years, and it will continue to be forgiven as long as you can continue to meet the requirements stated in the deed and promissory note. To qualify, the home must meet the minimum health and safety standards set by the US Department of Housing and Urban Development.
- FHA loans – Many first-time home buyers typically have unsatisfactory credit, which could it difficult to secure conventional financing. In that case, they may consider financing that’s insured by the Federal Housing Administration (FHA). The program is a first-time home buyer loan for low- to moderate-income borrowers who are unwilling or unable to make a big down payment. The requirement is as low as 3.5 percent, and the funding can come from a grant or a gift, making FHA loans popular. Apart from that, you could qualify with a low FICO score.
- VA loans – If you are actively serving the country or have retired from service and you’re buying a house for the first time, you may want to look into VA loans. These are insured by the Department of Veteran Affairs and provides security to both the lender and the borrower.
- Jumbo loans – When you are confident enough to purchase a condo, single family detached property, or a PUD, be sure to check out jumbo loans. For the first time home buyer, these loans can help you invest in a bigger house or a property in a high-end community or neighborhood.