05 Jan Get All the Information on Financing Your First Home!

Are you thinking about buying a your first home in the Denver/Boulder market and money is standing in the way of home ownership? Most millennial renters want to buy a home, but most say they can’t afford to! What you may not realize is that many first-time homebuyer programs and grants offer financial help!

Here are a few of the ways to get financed for your first home!

  1. FHA loan

In an FHA loan, the Federal Housing Administration insures the mortgage. The FHA is an agency within the U.S. Department of Housing and Urban Development.

These loans typically come with competitive interest rates, smaller down payments and lower closing costs than conventional loans.

If you have a credit score of 580 or higher, you could be eligible for a mortgage with a down payment as low as 3.5 percent of the purchase price. If your credit score is lower than 580, you still might qualify for an FHA mortgage, but the down payment would be at least 10 percent of the purchase amount.

  1. USDA loan

While not well known, the U.S. Department of Agriculture has a home buyer assistance program!

The USDA guarantees the home loan. There may be no down payment required, and the loan payments are fixed.

Applicants with a credit score of 640 or higher typically get streamlined processing. With a credit score below 640, you still can qualify for a USDA loan, but the lender will ask for extra documentation about your payment history.

  1. VA Loans

The U.S. Department of Veterans Affairs helps active-duty military members, veterans and surviving spouses buy homes.

The VA guarantees part of the loan, making it possible for lenders to offer some special features; such as competitive interest rates, no down payment and you aren’t required to pay for private mortgage insurance. Minimum credit score also isn’t needed for eligibility.

  1. Good Neighbor Next Door

The Good Neighbor Next Door program provides housing aid for law enforcement officers, firefighters, emergency medical technicians and pre-kindergarten through 12th-grade teachers.

Through this program, you can receive a discount of 50 percent on a home’s listed price in regions known as revitalization areas.

  1. Fannie Mae or Freddie Mac

Fannie Mae and Freddie Mac are government-sponsored entities. They work with local lenders to offer mortgage options that benefit low- and moderate-income families.

With the backing of Fannie Mae and Freddie Mac, lenders can offer competitive interest rates and accept down payments as low as 3 percent of the purchase price.


Contact a FourStar Local Expert today and get started on the path to home ownership!

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