Believe it or not there are still many low down payment options to buyers in the state of Colorado. If you are a first time homebuyer, which means you havent owned a home in the past three years, and you want to take advantage of the free $8,000 the government is giving away via the $8,000 tax credit you must be under contract by April 30th and close on your home by June 30th. If you dont have much to put down on a home here are some options:
FHA loans offer a great way to get in to a home with only 3.5% for a down payment. If you dont have 3.5% down FHA allows a gift from a relative to cover the 3.5% down payment. You can pay the gift back to your relative in a matter of months when you receive the 8k tax credit back after you do you taxes or amend your previously filed 2009 taxes. FHA offers very low rates even with credit scores downward of 620 so if you have had some credit issues in the past FHA may be a viable option.
HUD homes are another way to get into a home with very little money down to buyers in the state of Colorado. HUD homes are foreclosed homes in which the former owner had an FHA loan. These loans only require the buyer to bring $100 to the table for a down payment. That is not a typo. A $100 is all HUD asks for. Some of these homes may look like Gary Busey after a long night of drinking but with some TLC they can definitely be called home and with very little money down.
CHFA, otherwise known as Colorado Housing Finance Authority, offers great options to buyers statewide in Colorado as well. CHFA allows buyers to only put $1000 down on any resale, bank owned, or home in short sale. CHFA has a number of different programs that allow a first mortgage up to 96.5% of the purchase price and a second mortgage covering the difference that can be used for down payment, closing costs, prepaids, and escrows. Both loans have the same interest rate and are amortized over 30 years. This low down payment option is a great way to utilize the states funds to your advantage. Income and purchase price limits do apply on this program in the State of Colorado so be sure to contact me with any questions regarding those limits. One more benefit to CHFA is that they will consider a loan for borrowers with credit scores down to 580 so depending on the issues you have with your credit CHFA may still be willing to work with you.
USDA, otherwise known as United States Department of Agriculture, have a fantastic program for people living in Rural areas of Colorado. The USDA program requires no money down on homes in rural areas and no monthly mortgage insurance which gives buyers in rural areas of Colorado much more buying power. There is an up front mortgage insurance premium of .5% rolled into the loan but no monthly mortgage insurance is required. If I lived in a rural area of Colorado I would be all over this loan like the Winter Olympics were with figure skating because I would be able to afford much more home with no down payment. Income and Purchase price limits do apply on this program so please contact me with any questions.
Bottom line is whether you are looking for a home in the Denver Metro area, the four corners of Colorado, up to Ft. Collins, back down to Pueblo or all the way in Grand Junction there are little to no money down programs a plenty just waiting for you to find a place to call home. I’m sure there are some questions for me out there so please dont hesitate to contact me.
Bobby Kurpinsky
Email: bkurpinsky@megastarfinancial.com
Web: www.megastarhomeloans.com
Filed under: Uncategorized, CHFA, FHA Loans, Home Loans, HUD Homes, USDA
