For Colorado Homebuyers
If you are looking to buy a home, one of your first steps should be to know how much of a down payment you will need for the home. Here is an overview of some programs:
FHA Mortgages Low down payments - 3.5% with a 580 credit score or higher; 10% down from 500
VA Loan Programs The Department of Veterans Affairs guarantees very attractive long-term fixed rate mortgages for eligible military members with little or no down payment options using a VA mortgage.
Low Doc or No Tax-Return Mortgage The minimum down payment for the bank account statement program is 10 percent, 15-percent for an asset-qualifier program, and 15-20-percent for the cash-flow investment property loan. These loans are subject to credit scores being above 620, satisfactory credit report, and 2 years of self-employment, if applicable.
The traditional down payment is 20-percent but there are programs with as little as 10-percent as well if you meet strict conditions. For quite some time, a 10-percent down payment is the minimum for home purchase prices from $958,500 to $1,500,000 in Denver, Boulder and other areas of Colorado. Check our jumbo home mortgage page for more details because one size doesn't fit all.
Home Prices in Denver and Boulder According to the DMAR (Denver Metro Association of Realtors) the median home price in Denver in November was $599,000 to $615,000 and $380,000 for a condo.
In Boulder, the median home sales price was $975,000 from reports by Redfin. The median home price at times be skewed with more multi-million dollar homes sold combined in a market with low inventory. Adjacent cities near Boulder like Louisville, Longmont, Lafayette, and Superior have slightly lower priced homes.
Because the median price is far above the $802,650 conforming limit, you may need to have 20-percent of the home's contract price ready for a down payment. However, there are loan products that allow just 5% down up to $1.5 million (yet rates are not as attractive). If you're a first-time home buyer who wants a low down payment, we have 3-percent, 5 percent and 10-percent down to keep more money in your pocket.
Below are the conforming loan limits and minimum down payments for a Duplex, Triplex, or Quadplex in Denver, Boulder, CO Springs, or Fort Collins. If the purchase price or value is above these limits, you'll need non-conforming financing.
Of course if you are eligible for a VA loan, you may qualify for zero down on some of the above scenarios.
Once more, to summarize the down payment options available to help you become a homeowner in the greater Denver metro, Fort Collins and Colorado Springs area are: FHA mortgage loans with as little as 3.5% down. Conventional fixed-rate home loans with as little as 3% down. VA home loans with zero down payment for eligible veterans. Down payment assistance programs may be available through CHFA. Seller may pay up to 3-percent of the sales price towards buyer's closing costs