First Time Home Buyer Loans Wheat Ridge Colorado
Another great post from RJ. Often clients come to me asking questions about lending and I always defualt to the experts. This is excellent info for those first time homebuyers that help them navigate the lending process. If you have further questions give RJ a call. If you are looking to buy in Wheat Ridge give me a call!
Many first time home buyers come to us confused by the many first time home buyer loans in Wheat Ridge that are available for financing their first home. Not only that, but there is so much real estate industry-specific terminology to learn and understand, that the home buying process can be intimidating to say the least.
In this article, I will explain the most common first time home buyer loans Wheat Ridge so that you will understand the
options and requirements more clearly. As always, we are available as a resource if you have specific questions about these programs or any other home buying concepts.
FHA Loans: FHA is by far the most common first time home buyer loan option. The reason for this is that FHA has a very small down payment requirement of 3.5% (ie, $3500 on a $100,000 home), and has flexible underwriting standards (the underwriter is the person who reviews your file and says that you're approved and can get the financing).
Your credit doesn't have to be perfect with FHA. Lenders will go as low as 580 with your credit score, and you can obtain financing just 2 years after discharge of a bankruptcy. An added bonus is that if you need help with down payment or a co-signer, FHA allows family members to help.
VA Loans: If you are a veteran or active duty military, VA is hands-down the best loan program going. Rates are low with VA, and there is no monthly mortgage insurance. Mortgage insurance is an additional insurance policy that helps the lender in case you foreclose on your home. Every other program with less than 20% down payment has mortgage insurance, which adds to your monthly payment. There is also no down payment required!
To be eligible for VA financing, you must have served and been honorably discharged, or be currently active duty and in good standing. We can help you verify your eligibility quickly.
USDA Loans: USDA is an excellent option if you live in a small town or a rural area. This program also does not have a down payment requirement, and is flexible in underwriting. Don't confuse this loan, however, with agricultural financing. USDA is meant for residential homes in rural areas, not farms.
Conventional: Conventional loans can also be used by first time home buyers, but have slightly tougher underwriting standards than the options I have already mentioned. If you have excellent credit and a 5% down payment, conventional is definitely worth considering.
CHFA down payment assistance: If you need down payment and closing cost assistance, CHFA (Colorado Housing Finance Authority) is something to consider. The program will provide a 2nd mortgage that can cover your down payment and closing costs. You must meet income requirements and must be a first time home buyer in order to obtain assistance.
Whichever way you go, a good lender can help you to figure out the best route for your situation. Be sure you are getting the best advice for YOU and not for the lender. First Time Home Buyer Loans Wheat Ridge Colorado can be intimidating and confusing, but a good lender will help you navigate through the process.
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RJ Baxter, First Cal Colorado
303-670-0137 (direct)
12211 West Alameda Pkwy, Suite 210
Lakewood, CO 80228
NMLS #395819
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