When it comes to home buying, one of the primary pieces of advice that mortgage advisors will offer involves the importance of down payments. You have likely heard that the more you are able to put down up front, the less you’ll be paying in the long run on interest. For many people looking to buy a home, this can be very intimidating. Although not every family or individual feels as though they can make a large enough down payment, or reach the 20% they often hear is the minimum. On our blog today we’re tackling how to receive down payment assistance. And yes, down payment assistance is a thing.
First and foremost, it’s important that we establish the 20% minimum down payment myth as just that, a myth. In the long run, the individual who is impacted by the size of their down payment is you. If you feel comfortable with your down payment of 10 or 15 percent, then your loan officer will happily make that work for you. Say you’re able to do 25 percent, then that’s great too! The fact of the matter is that whatever the size of your down payment is, your loan officer will find a mortgage that is just right for you.
To get down to the nitty gritty, there are down payment assistance options available in Colorado that will grant you up to 4% for a down payment which does not need to be repaid. However, it must be noted that there are requirements on your minimum credit score, income limits and a homebuyer education class in order to qualify. In addition, not only do we offer down payment assistance, but we also offer several low money down options available as well.
As always, it’s important that you speak to your loan officer before taking any action, as they know the process and your restrictions better than anyone else. They may even be able to offer you an option which is more appropriate for your circumstances. Reach out to your loan officer today if you’re interested in Down Payment Assistance or low money down options!