There are wide variety of financing options that maybe available to you when purchasing a home in Colorado. While there are too many variables and options to review in detail, below you will find a quick summary of financing options and you can all read blogs about mortgage loans in Colorado for more information.
FHA loans are common with 1st time home buyers as they only require borrowers to make a 3.5% down payment and allow homebuyers to obtain down payment assistance, grants, and gifts for down payment on a home. FHA mortgage guidelines are also more lenient than conventional mortgage programs. FHA also offers “rehab” mortgage, FHA 203k streamline, that allows homebuyers in Colorado to finance rehab costs into their purchase loan.
Read more about FHA mortgage loans in Colorado.
VA mortgages are great options for qualifying US veterans and don’t require a down payment to purchase in Colorado. VA guidelines are also more relaxed than conventional loans and offer more flexibility for veterans. VA loans can have a funding fee up to 3.3% which has to be considered when comparing it to other mortgage programs. You can find more information on our blogs about VA mortgage loans in Colorado.
Read more about Colorado VA Mortgage Loans.
There are several down payment assistance programs in Colorado, but most are limited to certain Cities or Counties. Most programs in Colorado are limited to first time home buyers (but not all) and all of the programs have income restrictions. Click on the following link for more information on down payment assistance options in Colorado or Contact us.
The USDA Rural mortgage program is a great option to Colorado homebuyers, however it is restricted to certain areas in Colorado and it also has income restrictions. If you are purchasing a house in an eligible area you can obtain a mortgage with no down payment and no annual mortgage insurance!
Read more about Colorado USDA Mortgage Loans.
Colorado Conventional Loans
Mortgages in Colorado that meet Fannie Mae or Freddie Mac guidelines are considered conforming or conventional loans. Conventional mortgages provide homebuyers with higher credit scores and down payment capabilities low cost mortgage options. Unlike government programs, conventional mortgages also allow homebuyers in Colorado to purchase investment properties and 2nd homes.
Colorado Jumbo Loans
Jumbo mortgages in Colorado or non-conforming loans are mortgages that don't meet conventional guidelines, usually because the loan amount is great than the conforming loan limit of $417,000. While there are fewer options available to Colorado home buyers trying to obtain a jumbo loan, there are still several options to help home buyers. There are even lenders only requiring a 10% equity position for jumbo loans upto a loan amount of $667,000.
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