MYTH - You must have 20% down.
This is the largest misconception in buying a home.
Conventional loans require a minimum of 3% down.
FHA requires a minimum of 3.5%.
VA requires ZERO down payment.
USDA requires ZERO down payment.
Down Payment Options:
Using money you have saved is always terrific, but there are many other ways to obtain your down payment too. Just keep in mind that, no matter where your down payment comes from, we must collect documentation as to where it came from, if it is not your own money.
Loans and gifts from family, friends, and other organizations can help you put together a down payment sufficient for your home loan needs.
Many employers offer programs to their employees to make the home buying experience easier.
401K plans are often used for this purpose and employees are permitted to withdraw from their 401K plans without penalty to provide a down payment on a home loan. Making use of your 401K program can be useful and beneficial.
Down Payment Assistance Programs (aka DPA's):
There are many down payment assistance programs that will help a buyer with the down payment. Our Mortgage Professional will be able to discuss your qualifications with you on an individual basis. Each of these programs do require Hombuyer Education classes. And, while some people try to steer clear of classes, all of our buyers that have taken the classes agree it was well worth their time.
CHENOA Fund - Offers 2nd mortgage or grant. Some programs do not require the buyer to be a first-time homebuyer. Some programs do not have income limitations. There is no minimum required borrower contribution.
CHFA - Colorado Housing and Finance Authority provides a variety of mortgage programs to home buyers in Colorado as well as a Down Payment Assistant Grant or loan with several of their programs which covers closing costs and/or down payment funds. Most CHFA programs do not require borrowers to be first-time home buyers, but they do require a $1,000 minimum financial investment. Borrowers must meet program income limits, and the transaction must meet underwriting guidelines.
USDA Rural Development Program - The USDA Program offers mortgage financing to borrowers who want to live in a rural community. They support this mission by offering mortgage financing for rural properties through approved lenders.
This product might be a good fit for you if...
•You are looking for 100% Financing.
•You would like to roll the required guarantee fee and closing costs into the loan amount (as long as those costs don’t exceed the appraised value).
•Your income is lower than the maximum allowed by the program (income limits are defined by the USDA and vary by location).
•You’re looking for a loan term of up to 30 years and an interest rate that is fixed for the life of the loan.
ACADEMY NATIONAL MORTGAGE CORPORATION - NMLSR #191799
SERVING ALL OF COLORADO
Phone: 303.987.0622 / Cell/Text: 303.902.0082