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Low Down Payment Programs | Complete Guide | Colorado

 

Comprehensive Guide to Low Down Payment Programs

Hello! Hope you are having an amazing day! 馃榾 This blog post is a comprehensive guide to low down payment programs. If you’re looking for information on down payment assistance programs, check out my separate guide here.

Why Choose a Low Down Payment Program?

You might wonder why someone would opt for a low down payment program instead of a down payment assistance program. Here are some reasons to consider:

  • Flexibility: Low down payment programs often come with fewer restrictions and may be more accessible based on your financial situation and credit score.
  • Speed: These programs can sometimes result in a quicker approval process, allowing you to move forward with your home purchase without delay.
  • Control: You maintain more control over your finances without relying on additional assistance that may have specific conditions or repayment requirements.
  • Lower Rates:聽In most cases interest rates are lower on than a down payment assistance program

Loan Types and Requirements

Below is a detailed breakdown of various low down payment programs, categorized by credit score, minimum down payment, income restrictions, and first-time buyer requirements.

Credit Score Loan Type Minimum Down Payment Income Restriction First-Time Buyer Requirement Special Notes
500+ FHA 10% No Income Restriction No
500+ VA 0% No Income Restriction No
580+ FHA $100 No Income Restriction No Must be used on eligible HUD properties
580+ FHA 3.5% No Income Restriction No
580+ VA 0% No Income Restriction No
620+ FHA 3.5% No Income Restriction No
620+ VA 0% No Income Restriction No
620+ USDA 0% Income Restricted* No Property Restricted to Approved Areas**
680+ FHA 3.5% No Income Restriction No
680+ VA 0% No Income Restriction No
680+ USDA 0% Income Restricted* No Property Restricted to Approved Areas**
680+ Home Ready Conventional* 3% Income Restricted to 80% AMI*** No Improved Pricing
680+ Home Possible Conventional* 3% Income Restricted to 80% AMI*** No Improved Pricing, $1250 Grant
680+ Standard Conventional* 3%** No Income Restriction Yes 5% down if you have owned a home in the last 3 years

Key Notes

  • *Approval for conventional loans with a credit score below 680 might be possible but usually requires a higher down payment.
  • **First-time buyers can benefit from a 3% down payment, while those who have owned a home in the last three years may need a 5% down payment.
  • ***Income restrictions and property eligibility for USDA loans can be found here: USDA Eligibility
  • ****To learn more about AMI, check out this video: AMI Look Video

Additional Resources

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