Buying a Home in Colorado
Toying with the idea of buying a home in Colorado? This could be an ideal time to pick out a dream home in the Centennial State. Here’s what you need to know:
Pick a city or town to call home. There are almost 5.2 million people in Colorado, and more than a third live in the city’s top six biggest cities:
- Denver (state capital)
- Colorado Springs
- Fort Collins
Check your budget. Colorado ranks 5th in US homes for sale at average price, and 6th for homes over $1,000,000. Get preapproved before you go house hunting so you know how much home you can afford.
Many first-time home buyers are able to qualify for assistance through a program administered by the Colorado Housing and Finance Authority (CHFA)
The CHFA down payment assistance grant allows you to receive funds for up to 3 percent of your first mortgage (for example, $7,500 on a $250,000 mortgage), and you don’t have to repay the grant.
CHFA’s second mortgage provides assistance funds for up to 4 percent of your first mortgage ($10,000 on a $200,000 mortgage). Repayment isn’t due until you pay off or refinance the first mortgage, or sell your home.
To qualify for these first-time home buyer programs in Colorado, you’ll need to:
- Have a credit score of no lower than 620
- Complete a homebuyer education class before completion of the loan
- Meet income requirements
- Contribute a minimum of $1,000 towards the purchase
- Be capable of fulfilling your mortgage lender’s loan requirements
Refinancing in Colorado
If you plan to refinance a home in Colorado in the even of favorable Colorado mortgage rates, you can do any of the following:
- Use your refinance to get a lower interest rate
- Use your refinance to get a longer loan term
- Use your refinance to get an equity cash-out
- Use your refinance to get rid of a private mortgage insurance (PMI) requirement
You might be able to qualify for a streamlined refinance for certain types of loans. Ask your lender for more information.