Good News on Assistance for Denver Home Buyers

How did the Denver real estate market fare this spring, now that we’re headed into summer?  Recent statistics show that the our market has been improving over the past few months - and has been dominated by first-time homebuyers, who were eligible for the federal tax credit that expired at the end of April.  Now that the credit has expired, where does that leave you as a prospective home buyer?

Even if you were unable to take advantage of the first-time homebuyer tax credit, chances are you still may be able to afford a great home.  And now is a great time to do so - this year Denver-area home sales increased by nearly 50% from February to March.  We also saw an increase in sales by 12.4% from a year ago in March.  In that month, a whopping 70% of Denver homes that sold were priced below $300,000, and 92% of them were priced below $500,000.  With a little creativity, you can boost affordability while looking for the perfect home in Denver (or the surrounding area). 

Whether you’re looking for a starter home, or upgrading to accommodate a growing family, consider these options:

• Look to family.  Sit down with your family members to see what assistance they'd be willing to offer. You may find that a father or grandmother would be more than happy to co-sign on a loan, or even offer you a loan at low to no interest. You could also discuss a shared-appreciation or shared-equity arrangement, which is when a family member buys a portion of the prospective home, and they then share in any appreciated value when it is sold. 

• Buyer Assistance Programs. 
  
  • The Department of Housing and Urban Development (HUD) website has links to each state and their respective programs.  You can find Colorado’s at: Homeownership:  Colorado - HUD.  You will also find programs to help fund rural housing, as well as information on Habitat for Humanity. 
    
  • The Federal Housing Agency (FHA) offers many great options for potential buyers. With FHA, your down payment can be as low as 3.5% of the purchase price, and most of your closing costs and fees can be included in the loan.

If you are a prospective Denver homebuyer, it’s a great time to get off the sidelines.  Doing so could enable you to take advantage of one of the best buyer's market in decades.  Contact your local Denver real estate experts to learn more about your options.  We are ready to help you learn how to utilize assistance programs, secure the right financing, and explore your mortgage options.  There are many paths to owning a home, let the Bandy Team find the right one for you!

Marianne Bandy                                                                                                                             
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