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Today’s Rates for First Time Homebuyers in Denver

Friday, October 18, 2019

Mortgage rates are at 3.72% for the 30 year fixed loan program and at 3.40% for the 15 year fixed. As for variable rates, the 5/1 ARM rate currently stands at 4.22%. Check out FHA and VA rates as well if you are doing low or no down payments.

Denver First Time Buyer Home Loan Programs

Interested in a buying your first home in Denver Colorado, and curious about your financing options? Explore everything from government-backed and first time homebuyer assistance loans to mortgage tax credits and more in Lender411's comprehensive guide to Denver mortgage. 

Denver FHA Loans

FHA loans are insured by the Federal Housing Administration, and have long been a favorite option for Denver first time homebuyers and homebuyers with smaller savings, thanks to their low down payment requirements and lenient credit standards. Take a look at current FHA loan facts and requirements:

  • Down payment, loan-to-value (LTV): 3.5%, 96.5%.
  • Credit score minimum: Typically 580 or greater. 
  • Debt-to-income (DTI): Typically 45-50% or less. 
  • Upfront mortgage insurance of 1.75% the base loan amount is required. 

Annual mortgage insurance premiums of varying percentage are also required, and paid monthly. New FHA borrowers, however, will receive annual MIP rates of half a percent lower than the original rate, typically 1.35%.

Denver First Time Homebuyer Loan Programs

If you’re buying a home in Denver for the first time, there are several different programs for you to use to help out with the financial cost.  
Metro Mortgage Assistance Plus
This mortgage grant, available through the City of Denver, is meant for first time homebuyers who have low to moderate income in the Denver area. This program will help homebuyers with up to 4% of the home’s purchase price and doesn’t have to be paid back. In order to be eligible, homebuyers must:
  • Have an income of $91,000 or less for a single or two person household; have an income of $103,000 or less for a household of more than three people.
  • Meet standard mortgage loan guidelines in terms of credit score, debt-to-income ratio and income.
  • Complete a HUD-approved homebuyer educational program.
  • Bring a minimum of 0.5% of the down payment to the home’s loan closing.
  • Purchase an eligible property such as a single-family home, condo, duplex or manufactured home.
  • Occupy the property as a primary residence.
Mortgage Credit Certificate Program
You may be able to claim a federal tax income credit in Denver, but if the home is sold within five years, the tax will likely be due. You will need to be a first time home buyer in order to qualify for this mortgage tax credit.

Statewide Grant and Assistance Programs 

The Colorado Housing and Finance Authority (CHFA) offers several loan programs to help first time home buyers of various backgrounds affordably finance a mortgage:

  • CHFA Advantage: no monthly mortgage insurance and only 3% down required; 680 credit score minimum.
  • CHFA Preferred: low mortgage insurance rates and down payment assistance available to cover the 3% down payment; 620 credit minimum.
  • CHFA SmartStep: low interest rate mortgage with available down payment assistance to borrow; 620 credit minimum. 
  • HomeOpener: program for higher cost properties than other programs permit; down payment assistance is available.
  • HomeAccess: home financing help for borrowers who have diabilities; borrowers with children with diabilities are also eligible. 
  • SectionEight Homeownership: purchase and payment assistance to borrowers with Section 8 rental vouchers for the year preceding mortgage application filing.

Also available is the Mortgage Credit Certificate (MCC) tax credit program for first time home buyers with a credit score of 620 or above. The MCC is not a loan but a tax benefit that lessens the federal withholding on participant pay checks, freeing more cash for monthly mortgage payments. The MCC tax credit program is available statewide, including popular cities like Boulder, Denver, and Aurora. 

user suit Lenders in: Denver, Colorado.

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