Mortgage in Colorado
Colorado is home to some of the best skiing in all of the United States. It's also home to the Mile High City, Denver. Part of what makes Colorado such an attractive state to live in is its diverse economy and lovely outdoor attractions. Those positives have meant that Colorado has had a significant increase in housing costs recently. It currently has the sixth-highest median home price in the nation , just behind Washington. Fortunately, you can use our Colorado mortgage calculator to get a good sense of how much you'll pay to move here!
Whether you want to move to Colorado for work or fun, here's what you need to know about mortgages in the Centennial State!
Colorado Mortgage Calculator: All Your Options
If you're looking to buy a home in Colorado, you can choose from one of three mortgage types.
- Colorado conventional mortgage: Conventional loans are by far the most popular in Colorado. These mortgages typically require a debt-to-income ratio below 50%, a credit score of at least 620, and a down payment of 5-20%. Conforming loans (mortgage amounts under $822,375 for Summit County, $596,850 for Denver, and $548,250 for many other places in Colorado) receive backing from Freddie Mac and Fannie Mae. If you have a mortgage above those amounts, you could need a significantly higher credit score, a down payment of 20%, and a debt-to-income ratio below 43%.
- Colorado FHA mortgage: FHA loans are excellent options for many buyers in Colorado as they allow for as little as 3.5% down, as long as you have a credit score above 580. If your credit score is higher than 500 but lower than 580, you'll need 10%.
- Colorado VA mortgage: Veterans enjoy some of the best loan terms in the nation. Thanks to the VA, veterans can get mortgages with no private mortgage insurance, and veterans have the option of putting as little as 0% down. Interest rates are quite competitive, as well!
Once you know which mortgage type you want, a rough estimate of your home price, and how much you'll need to put down, you can start using the Colorado mortgage calculator to see how much your home will cost each month!
First-Time Homebuyers in Colorado
There are two assistance programs for first-time homebuyers in the Centennial State. The Colorado Housing and Finance Authority offers both of them.
The CHFA loan is a regular mortgage obtained through a network of participating lenders. With a CHFA mortgage, the Colorado government helps back the loan. Therefore, you'll have reduced (or no) mortgage insurance and potentially some closing cost support.
Eligibility Criteria: You must meet income limits (typically between $50,000 and $80,000 depending on the county). You need to have a minimum credit score of 620. Finally, you must put at least $1,000 of your own money towards the purchase.
Down Payment or Closing Cost Assistance
Colorado offers two assistance options. The first is a down payment assistance grant. That grant provides up to 3% of your first mortgage, and there's no repayment required. CHFA also offers a second mortgage loan, which is up to 4% of the first mortgage. Borrowers must repay this, but government defers the payments until the first mortgage ends or the borrower sells or refinances the property.
Eligibility Criteria: Borrowers must meet the same criteria as outlined with the CHFA loan.
Colorado Mortgage Calculator: An Intuitive Way To See How Much Moving Will Cost
Whether you already live in Colorado or you're looking to move to the state, use the Colorado mortgage calculator to see what it will cost you to get a property!
