Don’t Let Fear of a Down Payment Keep You from Homeownership

Updated: Feb 17

Even if you don’t have a big down payment, you could still get a home loan. From public assistance to specialized loan programs, there are more financing options available in Colorado than you may think.

Security First Financial can help you find a loan program that fits your situation. Here’s more helpful information about down payments to get you started...

You don’t need a 20% down payment.

While having a good chunk of money to put toward a down payment can help keep long-term costs down and help kick start your equity, you don’t necessarily need twenty percent.* We offer a variety of loans for people in all kinds of financial situations, including loans with little to no down payment required.**

Does having a large down payment help?

Yes, it can definitely help. The biggest benefit of having a lot of money to put down is that it means you don’t have to borrow as much. With a smaller loan, you’ll pay less in total interest and you can start developing equity sooner. It also proves to lenders that you’re serious and that may affect the types of financing you can get.

You may be eligible for down payment assistance.

Many government bodies work with nonprofit agencies to help borrowers with their down payments, especially if you’re a first-time homebuyer. Homeownership gives people roots in the community which can bring stability to communities.

For some of these programs, you’ll need to pay back the money for the down payment. But, in some cases, you can qualify for a grant, which means you get help with the down payment and don’t have to pay it back.

Some of these types of programs may be limited by a homebuyer’s income and the neighborhood in which they plan to buy. Talk to one of our local Loan Originators to learn about the Down Payment Assistance Programs that are available in Colorado.

Some loans don’t require a big down payment.

FHA Loans

You can qualify for an FHA Loan with a credit score as low as 500-580. These loans often have smaller down payments than conventional mortgages, so you may be able to get into a home faster.

VA Loans

VA Loans are for veterans and military service members. You may be able to get a VA loan with no down payment.** These loans also have lenient credit requirements and don’t require mortgage insurance.

USDA Loans

If you’re interested in buying a home in a rural area, a USDA Loan could help. You may be able to buy a home without a down payment.**

Renovation Loans (203K)

Interested in buying a house that needs a little extra love? A 203K Renovation Loan could help you buy a home with money to pay for renovations. These loans have minimal down payments and don’t require perfect credit to qualify.

Your home awaits!

Your goal of owning a home may be closer than you think. You don’t have to spend years saving up before you get started. You have options, so get home.

Contact one of our local Loan Originators today to discuss your down payment options.

* Possible loan scenario: 30-year term with 3.730% APR, a $245,471 loan amount, and zero down. ** Closing costs and fees may apply.

Original blog post by Primary Residential Mortgage Inc.:

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