Let me start by saying that the credit market is not “frozen”. Unlike the media is portraying we are still funding loans for first time and seasoned home buyers.
If you think you are ready to buy your first home there is no better time to buy a home in the Denver Metro area. With prices at a multi-year low the market will soon have no option but to trend back upwards. In exclusion to a couple areas of the Denver Metro area the real estate market is far ahead of the rest of the country. Recently, Fannie Mae and Freddie Mac officially removed Denver from their list of distressed/declining markets.
If you are preparing to buy your first home the main area of focus for home buyers has now become coming up with the down payment. Down payment assistance may or may not be coming back so buying a home for no money down is ALMOST impossible. I say ALMOST because there are still options for first time or seasoned buyers to buy with very little out of their own pocket.
As lenders tighten and markets suffer nationally the easiest way for lenders to reduce their risk is to require more of a down payment. Fortunately there are still options to get you into a home with very little down.
Options for a low down payment:
1.
HUD - $100 down incentive
HUD homes are homes that were initially financed with an FHA loan and have gone through the foreclosure process. The condition of these homes are not maintained by HUD so as you can assume some homes are in great condition and some are in poor condition.
As an FHA approved lender I can offer you an FHA loan on a HUD home which with a full price offer will result in a $100 down payment for you as the buyer. Most of these homes are offered under market value and with the $100 down incentive are great for first time homebuyers. Occasionally, while going through the foreclosure process deferred maintenance becomes an issue so critical examination of each HUD home is highly recommended.
Example – to get in with $100 down:
Listed price –$ 200,000
Offer – $206,000
Difference between listed price and offer are applied towards closing costs and prepaids.
Loan amount – $206,000 - $100 =$205,900
Visit this link to search Colorado HUD Homes: http://www.denver1stmortgage.com/firsthome
Apply online: denver1stmortgage.com
2.
CHFA – down payment and closing cost assistance
CHFA offers a 2nd mortgage that is used to pay down payment and or closing costs. There is no payment on the 2nd mortgage until you refinance, transfer title or sell the property. As a community program there are income limitations:
Denver Metro:
1 person: $68,000
2 people: $85,000
3+ people: $97,700
Purchase price limit: $350,000
Example – CHFA assistance:
Purchase price: $200,000
Required down payment (2.85%): $5,700
Closing Costs (roughly 3%): $6,000
New first mortgage: $195,300
New second Mortgage: $10,700
Cash to close - $1,000
As one of the few lenders in the Denver Metro area that is approved to offer CHFA loans I can help you finance the down payment and closing costs.
Apply online: denver1stmortgage.com
3.
FHA financing – low down payment
Starting January 1st 2009 FHA will require a down payment of 3.5%. Until the beginning of January FHA offers the lowest down payments of any loan products available today.
Purchase price Required down payment
$50,000 or less 2.25% of the purchase price
$50,001 to $125,000 2.35% of the purchase price
$125,000 or greater 2.85% or the purchase price
Apply online: denver1stmortgage.com
4.
Down payment assistance – seller paid
Up until 10/01/2008 seller paid down payment assistance was available. The buyer could buy the home and negotiate the seller pay closing costs and the down payment. Seller’s are still able to pay up to 6% of closing costs but are no longer able to pay the down payment for the buyer. This was a very useful tool to help buyers and sellers but at this point is unavailable. We are currently working on revising the terms of the down payment assistance in an attempt to bring the assistance back. As a DAP advocate I consistently update the status of Downpayment Assistance on my website blog: denver1stmortgage.com
I enjoy working with first time home buyers because they are always excited to buy their first home. I remember when I purchase my first home and offering that feeling to someone else is a privilege. In my opinion as a buyer you are at less risk with your money in the bank opposed to putting it down on the purchase. Equity in your home is a form of security but is much more exposed to risk than money in the bank.
I would love to help you buy your first home or answer any questions you may have.
You can apply online: denver1stmortgage.com
Sincerely,
Michael Shotnik
Direct Mortgage Banker
First Time Homebuyer Specialist
Summit Home Mortgage
mshotnik@summit-mortgage.com
denver1stmortgage.com
Source: http://www.ArticlePros.com/author.php?Michael Shotnik
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