Down Payment Assistant
Down Payment Assistant
So you’ve found your dream home but all of a sudden you are discouraged by the thought of paying for the down payment. A down payment is the amount you going to have to come up with from your own pocket before qualifying for a mortgage. It is a fraction of the total cost of a home. In the past down payments represents 20 percent of a home’s purchase price. Nowadays, it has reduced to as low as 3.5% of the purchase price to make it more reachable to more people.
There is a number of down payment assistance today. You might want to consider applying for one. To facilitate down payment assistance, first, Colorado down payment experts would have to identify who are the first time home buyers. A first time home buyer is someone who hasn’t had home ownership interest for the last three years. You might be eligible for down payment assistance if you fit this definition.
To find out if you are eligible to receive first time home buyer financing you must first work with an approved lender. For a first time home buyer in Colorado, the first thing you’ll need to do is to contact a lender within the area of Colorado. A Colorado Down Payment Expert can help you with that. You can get a consultation with them for free! They can also find a lender in your area. Although, they do not lend money directly to consumers, they refer approved private lenders instead. The lender would have to use program criteria to determine your eligibility for approval. There is a sales limit per county in which you are purchasing. The lender also would have to determine the estimated maximum amount loanable through your monthly income, your credit history, minimum financial investment, and property type and debt level. A Colorado first home buyer, also, would have to undergo homebuyer education counseling class under an eligible homebuyer education counseling organization. Once all of these are accomplished and all required materials are already gathered and they were able to determine that you are qualified for the loan, they will work to secure your loan.
Good news is Colorado down payment assistance programs don’t have any seller conditions and stiff contribution requirements. The only requirement for government-assisted housing program is that your combined family income must meet the stipulated minimum. This will vary depending on the number of your dependents and the average income for the area in which you are trying to purchase. They will offer financial assistance even to the minimum required down payment on a loan program and in some cases all allowable closing cost. Down payment assistance programs that are usually offered by the government (state, county and city) are usually secured by a second mortgage, in which, depending on your area and the down payment assistance program, you may qualify for what they call “silent seconds”. This means the loan is forgiven and no monthly payments are required provided that you live in the home for a certain period of time.