Are you house-hunting for the first time in Colorado? You’ll be glad to know that there are first time home buyer programs available to you. The right first-time home buyer loan in Colorado will make your purchase more affordable and manageable in the long run, especially in a state where home prices are usually high. With this loan, you can have enough for the down payment and closing costs, while enjoying low interest rates.
As you explore your options in first time home buyer loans, you are likely to come across FHA, VA, and USDA loans. These are provided by the Federal Housing Administration, the Department of Veterans Affairs, and the United States Department of Agriculture respectively. They differ in terms of their features and how you can be eligible for them. Here’s a summary of what you can expect from each of them:
- FHA loans – This first-time home buyer loan in Colorado may be great if you are looking to purchase a starter home. You may not have a good credit score and lack money for the down payment. You can be eligible with a credit score of at least 500, with the capability to make a down payment of least 3.5 percent. The loan is insured by the FHA.
- VA loans – This loan can cover the entire value of your home and does not require any private mortgage insurance. The closing costs are low, and your credit score must be 620 or higher. However, this is only available to former or current members of the military or their eligible beneficiary, like their spouse.
- USDA loans – This is a first-time home buyer loan in Colorado where you can be eligible with a low credit score, without making a down payment. However, it is available only to low to mid income Americans who want to buy a home in a suburban or rural area, which is subject to eligibility by the USDA.
A reputable and experienced mortgage broker can help you pick the best first-time home buyer loan in Colorado for your needs and connect you with the right lender. With their help, you can make an informed decision to choose an appropriate home loan for your first property.