Roberta indicated that an FHA loan might be a way to go, and I agree. If you will qualify for an FHA that would be the way to go. FHA loans are also easier to get in this martket. FHA would only require you to put down 3% and there are programs in Colorado that will lend you that money with little or no payments if you hit the income requirements.
There is "CHFA " They will lend you 3% (up to 10k) for an FHA or conventional loan in the form of a silent 2nd. What this means is there is a lien on the home, but you dont make any payments until you sell or refinance. The link is for the income and loan max information.
"Auorora Hope" & "CHAC" have programs that work like CHFA.
Del Norte - has a grant & Loan programs up to 10k
Plus Nehemaih & AmeriDream both are still good to use until 2/29/2008 with these programs a "non profit will give you the 3% down, and the seller donates the same amount to them after closing (plus a small transaction fee). These programs are ending due to a FHA guideline change but can be used before 2/29/2008.
FHA even has a $100 down program if you buy a HUD home for the starting bid price.
In any case you have a lot of options that you can look into. A good Real Estate Agent working with a good FHA approved lender should be able to get you into a home with little or no down, with one of these programs.
1. Cash values in a life insurance policy?
2. A gift from relatives.
3. A 401K loan.
4. Sell some collectibles or other values.
5. Seek a loan program (FHA or Acorn) that requires less down payment.
--Or a combination of any of the above! For additional information about the low-down Acorn loan, click the link below:
Working with Ian R. Bennett at Mutual Security Mortgage was an answer to my husband and I. We had been working with at least 3 agents and other lenders who were full of it and trying to take advantage of my husband and I because we are young. However, I am not naive, I know a lot. Two years later, after finding Ian Bennett, he referred me to an agent who would take care of us. Janie Henry-Bolger with Keller-Williams is a fantastic agent and will go the distance to make sure you are getting a good deal. I am thankful for Ian and Janie being honest and willing to help people ....as all agents and lenders should be.
Within a month of working with Janie Henry, we are ready to close on the 30th with only paying for our inspection and earnest money that we are expecting at closing. I never thought it could be so simple....until now. They are the best and most honest I've seen! If you're iffy with your credit and such, Ian can work wonders and get you in touch with the right people to help you, as well. All I can say is, Ian and Janie.....you'll be in perfect hands and in YOUR NEW HOME in no time. :)
Flagstar Bank has a new 100% financing arrangement to help stimulate the sale of their real estate portfolio properties. If you are interested in this program, give me a call at (303) 995-4157 and I can explain it to you and tell you the locations of their properties.
Gift from family is allowed only on FHA loans. Conventional loans do not allow for gift funds.
Verification of the source of gift money is not required. However, it is necessary that the gift funds be deposited in the borrower's bank or savings account, or in an escrow account, prior to underwriting approval. Proof of deposit is required.
Gift donors are restricted primarily to a relative of the borrower. They can also be certain organizations, such as a labor union or charitable organization. I am senior mortgage consultant here in Denver and we are FHA approved if you would like to discuss your options in more detail.