Winter is upon us! I mean look out your window...first snow! Winter in real estate…
You Too Can Enjoy all the First-Time Homebuyer Benefits
Remember how terrifying it was to apply for that super cool apartment with the high ceilings you just had to have? You kind of knew your credit score, and you had to beg, borrow and almost steal to pull together that dreaded “first, last and security deposit.” Many years later, those words still send shivers down my spine. Well here’s the good news: you’re all grown up now, The Rueth Team has worked with hundreds of first-time homebuyers to achieve their dream of homeownership and we are dedicated to helping you reap all the first-time homebuyer benefits that local and federal governments have to offer. We know how intimidating buying your first home can be, but we promise to answer all your questions and set you up for success by:
- Getting you pre-approved for free.
- Offering you a guarantee that you will close on time and under budget!
- Matching you with a trusted real estate agent.
- Helping you put down as little as 3% or utilize down payment assistance options for no money down.
- And helping you avoid paying private mortgage insurance (PMI) with lender-paid MI.
Let’s start by feeding the very hungry elephant in the room. Colorado is an awesome place to live, but that makes it very challenging to buy into the local real estate poker game. Don’t despair because both the local and federal governments are ready to help you buy that first house! There’s an entire page of resources and links to such assistance right here from the U.S. Department of Housing and Urban Development.
Colorado’s state housing finance agency, the Colorado Housing and Finance Authority (CHFA), provides access to fixed-rate mortgages and financial help for your down payment and closing costs. Qualification criteria include:
- Having a credit score above 620.
- Meeting certain income requirements.
- Completing a homebuyer’s education class.
- Putting $1,000 down.
- Fulfilling your mortgage lender’s loan requirements.
Once you clear those hurdles, CHFA can offer you the following programs:
- CHFA FirstStep – CHFA’s FirstStep and FirstStep Plus programs provide a 30-year fixed-rate FHA loan to first-time homebuyers, veterans or any buyer purchasing in a targeted area, along with down payment assistance if needed.
- In addition to meeting CHFA’s general loan requirements, the home you’re buying and your income must be within the program’s purchase price and income limits, respectively.
- CHFA HomeAccess – CHFA’s HomeAccess and HomeAccess Plus programs can provide a 30-year fixed-rate FHA or USDA loan to a first-time homebuyer or veteran who is either living with a permanent disability or is the custodial parent of a child living with a permanent disability.
- Like other CHFA programs, there are income and purchase price limits, but if you’re eligible, you can also obtain up to $25,000 in down payment assistance with your loan.
- CHFA SectionEight – CHFA’s SectionEight and SectionEight Plus Homeownership programs can provide a 30-year fixed-rate FHA or USDA loan to a first-time homebuyer or veteran who’s also receiving Section 8 agency assistance.
- You can combine this program with CHFA down payment assistance, but there’s a borrower income limit of $126,200.
- CHFA SmartStep – CHFA’s SmartStep and SmartStep Plus programs provide 30-year fixed-rate FHA, VA or USDA loans and CHFA down payment assistance.
- Like the SectionEight program, the income limit is $126,200.
- HFA Advantage and Preferred loans – CHFA also offers Fannie Mae HFA Preferred and Freddie Mac HFA Advantage loans for up to 97% financing, including an Advantage loan for low-income borrowers (called the Very-Low Income Program, or VLIP).
- These loans can also be paired with CHFA down payment assistance.
If you’re not feeling the love with CHFA’s first-time homebuyer benefits programs, be sure to kick the tires on some conventional low or no-down-payment loans like:
- FHA Loan – Purchase your home with only 3.5% down. Closing costs can be a gift from a relative!
- Visit (here) to see if you qualify for an FHA loan.
- VA Loan – No down payment, no PMI and flexible credit requirements make the VA Loan a top choice for veterans and active military members.
- Down Payment Assistance Programs
- 30-Year Loan – Our most popular mortgage. Purchase your home with a Fannie Mae or Freddie Mac 3% down conventional loan. Get a low payment and the security or a rate that won’t change for the life of the loan.
- There’s also the Good Neighbor Next Door program, which depending on your job and where you want to live, can be a great solution.
That’s a lot to take in, huh? Listen, we are here to guide you every step of the way. You should feel ecstatic and confident about your first home! It’s the biggest purchase you’ve ever made, isn’t it? All of us at The Rueth Team are committed to ensuring you find a house that brings you years of joy, stability, comfort and prosperity.
Visit our first-time homebuyer page (here) to download a free buyers guide and get started on your loan application today!