Buying a home these days is much like buying a home 10 years ago. It’s almost as if those heady days of exotic home loans with nothing down, stated income and no documents never existed. You have to have decent credit (580 credit scores and above) a down payment and verifiable income. Bottom line: it’s 1999 all over again.
Down Payment Assistance
You can still get down payment assistance from at least one source in Colorado. They provide a very low interest rate 2nd loan for down payment, but there are income and family size restrictions.
Low down payment, the best rates in the industry, credit scores can be as low as 580, FHA is the go to option of the vast majority of people buying homes in this market today. Again you have to be able to document verifiable income and come up with a down payment.
VA financing is a great way to buy your home if you’re a veteran. It requires no down payment, does not require mortgage insurance and is available to those who have served in the US Armed Forces. Interest rates are very close to FHA financing (the lowest rates available right now) and available to borrowers with as low as 580 credit scores.
The old tried and true Bank of Mom and Dad is a great way for homebuyers to swing a Real Estate purchase their way. FHA allows a gift of all or part of the down payment to come from a family member, church or synagogue (provided a long standing relationship can be documented).