First Time Home Buyer Loan

Mortgage Bank Specializing in First-Time Homebuyer Loans

Are you ready to buy your first home? 5280Lend.com offers home financing solutions for homebuyers in Colorado.

First-time homebuyers often experience doubt and stress about the real estate process. Purchasing a home is a big financial commitment and, most likely, the biggest you’ve ever made.

There’s a lot of information out there, and you want to ensure you get the best available deals, rates and advice. As Colorado mortgage experts, our team helps first-time buyers navigate the complex mortgage process. We’ll help you find peace of mind about your home purchase.

Contact us to schedule a FREE mortgage assessment.

What Is A First-Time Homebuyer Loan?

First-time homebuyer loans come in many different types and options. Most loans aren’t designed specifically for first-time buyers yet many standard mortgage options work well when purchasing your first home.

FHA loans offer an excellent option for many first-time homebuyers. But, depending on your circumstances, another type of mortgage may work better.

We’ll evaluate your finances and situation to determine your best path forward.

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How Does A First-Time Buyer Mortgage Work?

A first-time mortgage works the same as other mortgages. Each type of loan program includes different requirements, including minimum credit scores, income levels, and down payments.

The terms and interest rates for loans also vary. It’s critical to work with someone who understands the exact requirements for each type of loan before moving forward.

As mortgage specialists, we understand the details of each loan category. We only do business in Colorado, which means we know how to manage the loan process in our state.

An FHA loan gives homebuyers an alternative to a conventional home loan. The Federal Housing Administration (FHA) insures FHA loans to support borrowers who do not qualify for a traditional mortgage.

FHA loans are a good option for many first-time homebuyers. The government-backed mortgage program requires a smaller down payment and a lower credit score than many other loan programs.

First-Time Homebuyer Program Options

FHA Loan

FHA loans are the most typically associated first-time home buyer option. The Federal Housing Administration (FHA) insures FHA loans. These loans require a 3.5% down payment and offer a little more flexibility on where that down payment can come from than conventional loans do. Additionally, FHA loans have more relaxed credit and job history requirements than most conventional loans do.

The home must serve as the primary residence and meet other standards for the borrower to qualify for the loan. FHA loans also offer a renovation program that will allow you to borrow extra money to bring your home up to certain livable or functional standard.

Conventional Loan

Conventional loans are another choice for a first-time home buyer. The government does not back this type of loan, so the loan requirements are slightly different than FHA loans.

These loans offer an excellent option for first-time buyers with good credit scores and job stability. Fannie Mae and Freddie Mac have developed great first-time homebuyer options like their FNMA HomeReady https://singlefamily.fanniemae.com/media/16486/display and their FHLMC HomePossible https://sf.freddiemac.com/working-with-us/origination-underwriting/mortgage-products/home-possible options. Conventional loans have improved in recent year for first-time homebuyers.

VA Loan

A VA loan offers favorable terms for borrowers with previous or current military service. Qualifying first-time homebuyers benefit from the option to pay zero down without PMI insurance requirements. This is one of the only remaining zero down payment options available to homebuyers and is a huge benefit for those involved with the military.

For veterans with little to no down payment, VA loans typically offer the best mortgage option when you are buying a new home.

USDA Loan

USDA loans work well for first-time homebuyers who want to purchase rural property in rural or agricultural areas. With low mortgage rates, zero down payment options, and low insurance costs, these loans give buyers with fewer savings access to buy a home.

CHFA Loans

Colorado Housing and Finance Authority (www.chfainfo.com) is an excellent option for first-time homebuyers in Colorado that need help with a down payment. 5280Lend.com is one of CHFA’s top lenders and we offer this option frequently to homebuyers needing down payment assistance.

This loan type has one major restriction on income. Borrowers cannot make more annual income than the designated CHFA requirements. Outside of this restriction, this is an excellent option for first-time home buyers.

5280Lend.com can help you compare loan types to determine which option is the right choice for you. Contact us today to learn more about different mortgage types.

Why Work with a Mortgage Bank for A First-Time Homebuyer Loan?

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First-Time Homebuyer Loan FAQs

Yes! In fact, VA and USDA loans offer no down payment options for qualified first-time homebuyers. Colorado Housing and Finance Authority (CHFA https://www.chfainfo.com/) is another great financing option that will allow for NO DOWN PAYMENT.

Buying a house is one of life’s most significant financial decisions. When buyers don’t have to wait to enter the housing market, they can start building equity and wealth sooner.

We work with each client to achieve the best loan terms to meet your financial goals.

A mortgage bank specializes in home loans and can help you find the best type of loan for your situation. The first step is to complete a free mortgage assessment. This analysis will show you how much you can afford to spend every month and the different loan factors that impact monthly payments.

Our loan experts will conduct a financial analysis to determine the available loan options to meet your needs.

5280Lend.com encourages first-time home buyers to keep the following in mind when searching for a mortgage solution.

  • Consider your credit score. Borrowers with low credit scores can take some quick steps to improve their scores before applying for a loan. For example, reorganizing how you carry certain debts might help boost your score. We offer a Rapid Rescore credit score improvement tool to help clients increase their credit scores.
  • Avoid taking out new debt before applying for a mortgage loan. Talk to a mortgage expert before applying for new credit. Changes to your credit scores can have significant impact on your ability to qualify.
  • Be smart about purchasing. It’s easy to fall in love with a home outside your price range and convince yourself that you can borrow a little more than initially planned. Commit to your budget before you start viewing properties, and only look at homes within your price range.
  • Choosing a real estate agent, homeowner’s insurance agent, or home inspector can become overwhelming. We have a list of trusted professionals with experience and excellent knowledge in the Denver and Front Range areas. A good team will help the home-buying process go smoother.

Expert Mortgage Bank for First-Time Homebuyer Loans

5280Lend.com makes owning your first home attainable. First-time buyers have many financing solutions. We help connect you to those options to ensure you receive the best deal for your future.

We help clients in the Denver area finance their first Colorado homes. We will thoroughly analyze your finances to determine the best solution for you.

To start the process or learn more, fill out the contact form or call us to schedule a consultation.

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Highly recommend working with Ted. This was the 3rd home purchase Ted assisted us with and as always his service was flawless. He communicated with us throughout the process and was always available to answer any questions we had. We ran into a few issues with this most recent purchase and Ted stepped up for us on several occasions and kept everything moving forward. He worked with both our agent and seller’s agent to iron out the hiccups and get us to closing and we couldn’t be happier.

Stephanie E.