First Time Home Buyers

Helping you find the right loan
Home sold to first time home buyers

Thinking about buying your first home?

The best lending choices as first-time buyers

Tired of paying rent to your landlord?  Maybe you've built up some savings and have a good-sized down payment for your own property.  Becoming a homeowner for the first-time can be very rewarding as many will start to realize additional tax deductions and potential appreciation in home value.

Who is considered a First-Time Home Buyer (FTHB)?
An individual or a spouse who has not owned a primary residence in the last three years. This means married couples can still qualify as first-time buyers even if only one of them meets this test. Listed below are several first time home buyer programs.

Is there an advantage to being a FTHB?
Not really. Some loan programs are offered only for first-time homebuyers, the 3-perccent dowb program, while other loan programs place additional conditions such as a larger down payments, higher amount of reserves, or higher credit score.

FHA
An FHA loan is one of the most popular programs for a lot of Americans, in particular for Colorado first-time homebuyers and consumers who have average to below average credit ratings. The Federal Housing Administration guarantees a portion of the loans which has made the program attractive for both the lender and the borrower. Home loan applicants can qualify for 96.5% financing and only need a down payment of 3.5% if they have a 580 or higher credit score.

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VA
The U.S. Department of Veterans Affairs offers the VA loan to help military service members, veterans and surviving spouses purchase a primary home. The program has the most attractive rates and usually has zero down payment depending on the price.

USDA
The U.S. Department of Agriculture has a homebuyers assistance program. The program targets rural areas and allows 100% financing by providing mortgage guarantees. Rural does not mean just farms. Many USDA home loans are in suburban areas too. property eligibility includes the following:

  • ‐ income limits based on the region
  • ‐ rural area must have 20,000 residents or less
  • ‐ must not be located in an MSA
  • ‐ Have access from a paved road
.

Smiling first time buyers with boxes in new home

Conventional
Conforming loans closed through Fannie Mae and Freddie Mac are the large engines running the home loan industry. Borrowers have many great mortgage choices available from these government sponsored enterprises. Freddie Mac's Home Possible and Fannie's HomePath Ready Buyer programs only require 3-percent down payments.

There's also has 1% down payment option if the borrower has a middle FICO score of 700 or more, their annual income is below the county's median income, and have a debt-to-income ratio of 45% or less. If you meet these strict conditions along with underwriter's guidelines, some lenders will contribute the other 2% for the down payment. So, yes you may able able to buy a home with just 1% down.

Important Facts:
Many First-time Home buyer loans offer both adjustable-rate mortgage and 30-year fixed rate programs.

Grants: Also known as "free money" which can be applied to your down payment, closing costs, or improvements to the home following purchase. See them here

Who are First-time Homebuyer loans for?
Helps when you don't have a large down payment.
Helps when your income does not meet larger loan amounts.
If your credit score does qualify for other loan types.

Disadvantages of First Time Homebuyer Loans
Some potential challenges include:
Price limitations don't allow you to buy the home you want
FHA loans have higher mortgage insurance requirements

Educate yourself with our mortgage glossary so you know what certain terms mean during the process.

There are many loan programs designed to help first-time home buyers in Colorado's cities which include Denver, Boulder, Telluride, Steamboat Springs and surrounding areas.

What should a first time home buyer's credit report have?
Ideally, the lender wants you to have a credit history with (3) tradelines reporting for 24 months (credit card, auto, or student loans). If you only have two of the three, the lender may accept alternate credit such as a utility bill (cell phone or cable TV). To improve your credit score for a better interest rate, see these tips to make yourself a more attractive borrower.

What closing costs can I expect to pay?

When you apply for a purchase home loan, there will be closing costs once you're at the end of the loan process. This can add up to a good amount of funds. See this list of fees for examples.

Make sure you get pre approved first before you shop

Call or email today for the best rates, mortgage advice, and a FAST mortgage pre-approval!

Areas Served

We serve borrowers throughout the state of Colorado which includes these cities:

  • Boulder
  • Denver
  • Colorado Springs
  • Fort Collins
  • Cherry Creek
  • Littleton
  • Highlands Ranch
  • Englewood
  • Castle Rock
  • Aspen
  • Avon
  • Vail