First time home buyer programs in Colorado

Introduction

First time home buyers in Colorado may find it hard to purchase houses because of the increasing prices. Despite, the increased prices the houses are selling fast, making it even harder for first time home buyers. However, there are many programs which have been designed to help them to achieve their dream of homeownership. National and state programs can make homeownership easier if the borrower gets information on them. This article focuses on some of the Colorado Housing and Finance Agency (CHFA) programs that are meant to help first time home buyers to achieve their dreams. The programs are explained below.

CHFA Smart step loan

This loan program is meant for first time home buyers in Colorado who may not be able to raise enough down payments required by other mortgage lenders. The borrower should have a credit score of 620 and above in order to enjoy the low rates offered through CHFA Smart step loan program. Those who qualify for the program can combine it with down payment and closing cost assistance. It offers mortgage at a fixed rate and a loan term of 30 years. The borrower is also required to undergo a homebuyer education training course which can be done online. CHFA approved lenders has their underwriting process which the borrower should meet.

CHFA preferred loan program

This is a state mortgage program allows a borrower to make only 3% down payment. The monthly mortgage insurance required is lower compared to other programs in Colorado. The down payment and closing cost can be paid using the CHFA down payment assistance. The borrower is allowed to cancel the mortgage insurance when they attain 80% loan to value. Those who meet the eligibility criteria can increase the money saved using the CHFA mortgage credit certificate. The borrower should have a credit rating of 620 and meet income limits for them to get approved for the loan.

CHFA HomeAccess program

Those with physical disability face unique challenges when seeking to buy homes for the first time. The CHFA home access program helps people with disabilities or parents of a handicap to own home by lowering the down payment required. The borrower with a disability gets some money during the closing, which is not repaid for 30 years. This amount is sometimes forgiven if one follows the terms and conditions to the later. Those with small income can benefit from the program although it has limits from those mortgage lenders approved to issue HomeAccess loans to first time home buyers in Colorado.

Conclusion

The above programs are, but a few meant for first time home buyers in Colorado. The borrowers can take advantage of them because it gives reasonable rates, and the buyer can use down payment assistance. Those with a disability can make their dream of homeownership the come true through HomeAccess program.