Aurora First Time Home Buyer

Are you a first time home buyer looking to purchase a home in Aurora, Colorado?  On this page you can learn about some of the different types of mortgage programs that are available to first time home buyers in Colorado.  You may also view down payment assistance programs that are currently being offered in Colorado.

Aurora, Colorado – First Time Home Buyer Loans

Below are some mortgage programs that are available to first time home buyers.

Types of Mortgages:

• Conventional Loans – Conventional loans offer the best loan terms to borrowers with good or excellent credit, as well as those who can afford to place a larger down payment.  If you are able to put 20% or more down, you will be able to avoid paying private mortgage insurance (PMI).  However, conventional loans also offer low down payment options, such as programs that only require 3% down.
• FHA Loans – FHA loans are a good option for borrowers who may not be able to qualify for a conventional loan.  The qualification requirements for FHA loans are much more lenient than conventional loans.  This includes options for home buyers with credit scores as low as 500 (in order to qualify for a 3.5% down payment, you must have a credit score of at least 580).
• USDA Loans – USDA loans provide home buyers the opportunity to purchase a rural home without any down payment.  These loans are intended for borrowers with low-to-moderate income.  In addition to not requiring any money down, you can also finance the closing costs into the loan.  This means you can essentially buy a home with no money out of pocket!
• VA Loans – Active duty military members and veterans can apply for a VA loan which allows you to buy your first home without any down payment.  These loans are not available to the general public, but exclusively to military/veterans.
• Jumbo Loans – Any mortgage that does not meet the conforming loan limits is a jumbo loan.  You can lookup the 2023 conforming loan limits for your county using this conforming loan limit lookup tool.  If you want to buy a more expensive home, and have the income to qualify, jumbo lenders offer loan amounts up to $5,000,000.
• Non-Prime Loans – If you do not qualify for any of the above types of loans, you may consider a non-prime or non-qm loan.  These programs are especially helpful to self-employed borrowers, and a variety of people with credit issues (such as low credit scores and/or a recent bankruptcy, foreclosure, or short sale).  Regardless of your situation, you may want to learn more about non-prime loans if you do not qualify for any of the other types of mortgages featured above.

These are some of the options that are available to first time home buyers.  If you would like to get pre-approved for a mortgage, we can help match you with a lender that offers first time home buyer loans in Colorado.

Click here to get pre-approved for a mortgage

Aurora, Colorado – Down Payment Assistance Programs

First time home buyers in Aurora, CO may be eligible to receive down payment assistance.  This includes statewide programs available throughout Colorado, as well as a program offered exclusively in Aurora.  You may learn more about the Aurora down payment assistance program below.

HOAP Offers First-Time Homebuyers New HOPE

The Aurora, CO Home Ownership Assistance Program (HOAP) has a sole mission to make homes affordable for local residents in moderate and low income levels. HOAP does so by lending qualified applicants up to $10,000 at 0 percent interest to use for your down payment and closing costs.  You may view the program requirements below.

Program Requirements

• Limited liquid capital reserves –  Prospective borrowers may not own, have legal access or equitable interest in financial accounts with an aggregate balance that exceeds a certain amount. For latest specific figures and exemptions, contact HOAP directly at the number listed near end of this post.
• First-time home purchase – Applicants cannot have owned a home during three immediately prior years, as demonstrated by certified copies of at least three past annual tax returns.
• Financial education – All borrowers must attend at least one free monthly seminar to obtain a financial counseling certificate of completion. Signup by calling HOAP’s automated hotline at 303-739-7966 and follow voice prompts until you receive registration confirmation information.
• Financial contribution – Buyers must contribute at least one percent of the sales price from personal funds.
• Exclusive supplemental funding assistance – Buyers may not apply any other third-party funds toward HOAP-assisted home purchases.
• Maximum income limits –  Buyers must meet U.S. Housing and Urban Development guidelines for maximum gross income based on household size. HUD policy defines ‘household’ to include minor children, spouses, fiancés, legal or blood kin and non-related boarders who share a single primary residence.  You can view the current income limits below.

Income Limits

• 1 person – $52,000
• 2 people – $59,400
• 3 people – $66,850
• 4 people – $74,250
• 5 people – $80,200
• 6 people – $86,150
• 7 people – $92,100
• 8 people – $98,050

Property Eligibility Criteria

• $332,000 maximum purchase price.
• Located within Aurora city limits.
• Zoned as detached single-family dwelling, townhouse or condominium
• Satisfactory condition documented by a written expert inspection report to verify compliance with applicable health and safety standards, including a
• Lead Hazard Screen for pre-1978 construction. All repair work must be documented by contractor invoices for labor and receipts for materials or supplies purchased from third-party vendors prior to closing.
•  Market value is established per mortgage lender appraisal.
• Owner-occupied on date of initial sales contract. If vacant, seller must prove that former tenant(s) were not displaced.

If you would like to learn more about this program, you may do so on the City of Aurora website.

Get Matched with a Mortgage Lender

A loan representative can help you determine what mortgage programs you may qualify for, and also check your eligibility for down payment assistance.  If you would like to receive a free consultation, we can help match you with a mortgage lender that offers first time home buyer loans in Colorado.

Click here to get matched with a mortgage lender

First Time Home Buyer Questions 

Below are some of the most frequently asked questions about first time home buyer loans:

How much do I need for a down payment?
The minimum down payment requirement will depend on the type of mortgage program.  USDA and VA loans do not require any down payment.  FHA loans only require a 3.5% down payment (and allow down payment assistance to be used).  Conventional loans typically require either 3% or 5% down.   The minimum down payment for a non-prime loan is usually at least 10% (or higher).

What is the maximum loan amount that I can qualify for?
The amount that you will be allowed to borrow will depend mostly on your income, as well as the particular type of loan you are interested in.  There are maximum loan limits for each type of mortgage program which are set at the county level.  Conforming loan limits are the maximum loan amounts allowed for conventional mortgages.  FHA loans have their own loan limits.  This is not necessarily how much you can borrow though, but the maximum amount allowed in your location.  The amount that you can personal qualify for will be based upon your income, and how much debt you have.  For most loans, your monthly mortgage payment, along with your monthly debts may not exceed 43% of your income.

Can I buy a home without a real estate agent?
It depends on your state and the type of loan program.  For some states, you must use an agent.  In other states, you are not required to use a real estate agent for many loan program, such as conventional mortgages.  However, some loan types require that you use a real estate agent regardless of your location, such as USDA loans.

Are there mortgage loan options for borrowers with bad credit?
Yes, both FHA loans and non-prime loans are available to borrowers with lower credit score, and other credit challenges.  The minimum credit score required for an FHA loan is 500.  For non-prime loans, there are lenders that allow a borrower to have a credit score even below 500.  Non-prime loans also do not have any waiting periods after a bankruptcy.

Can I buy a home if I owe tax debt?
For government-backed loans, such as FHA, VA, and USDA loans, you can buy a home with tax debt as long as you have made a payment plan with the IRS, and are not behind on the payments. Any federal debt must be in good standing in order to get a government-based mortgage. If your tax debts have moved into the status of a tax lien, this will prevent you from getting a home loan until it is resolved.

Can I buy a home if I have student loans?
As long as you are not delinquent on the student loan payments, and the monthly payments do not cause excessive debt-to-income ratios, you can still get a mortgage.

Can I buy a home without my spouse?
A common question is if you can buy a house without your wife or husband.  The short answer is yes. There are numerous reasons someone may want to exclude their spouse from a mortgage application, such as lower credit, lack of job history or income, or one spouse having excessive debt that could prevent an approval. You may be able to qualify and get a home loan without your spouse.

How do I find out if I qualify for a mortgage?
It is easy to find out what mortgage programs you may qualify for.  We can match you with lender that offers free consultations, and they can help you get pre-approved (and also compare what options may be available to you).  To have a mortgage lender contact you, request to be matched with a lender.