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If you are a 1st time home buyer in Colorado you can apply here at our website online. You can be sure that the information you are going to give us will be confidential and will not be used for any other purpose other than what it is intended for. Your information is secure because we use SSL software to encrypt it and send it over the internet. For first time home buyer loans, our application online is fast and secure. Not only that, but it is also user-friendly. You are finished after a five-step application on a secure server. If, however, you were not able to complete the form on one sitting, you can just go back and log in later and all of the information will still be stored there. It’s fast, secure, easy, and user-friendly. Apply Now.
First Time Home Buyer and Bankruptcy
For 1st time home buyers in Colorado with a bankruptcy, here are a few of the requirements you need to fulfill to be able to process your application. Bankruptcy history should be eliminated for the last 24 months. Sometimes it takes within three to four years for first time home buyers before they can buy a home after the court discharges the debt. Here are some post-bankruptcy tips that you can do to improve your status. It helps if you will open a secured line of credit. It is best if you choose a credit card company that will report your activity to the credit bureaus so that every time you use the card and pay on time your credit improves. You should also make other payments on time like car payments. This will reflect that you are a good credit risk and will establish a good credit standing for you. Check your credit score three months or more after the bankruptcy to check if all the accounts have been discharged, if not, then contact your legal representative to help you clear the problem. If you handled the bankruptcy by yourself, contact the company reporting the debt.
Bankruptcy should not discourage you from owning your home. In fact, it helps to use the law to handle your financial mishap. Bankruptcy courts may help the homeowners to be realistic with their plans. A bankruptcy may also give you the break you need from paying all of your high qualifying debt in a reasonable time. A Bankruptcy can be a legal solution to your overwhelming financial problems.
To prepare for homeownership, start saving considerable money as a down payment for buying a home just after your bankruptcy has been discharged. Of course, the larger your down payment, the lower your monthly payment becomes. If you had good credit, the interest rate you’ll pay on a mortgage will be lower. Keep all your bankruptcy papers intact for the lender to review them along with other legal documentation to approve your loan.
To help fast-track your buying process, you can contact a realtor or several lenders for mortgage pre-approval to give you an advantage with sellers since they know you’re eligible for a mortgage. You can trust a mortgage consultant to help you with your manage your credit and finances.
A financial problem can be transitory and mortgage lenders are fully aware of that. Although, again, a 3-to-4 year wait is a probability once you’re discharged from bankruptcy before you can once again buy a home.
Get on a road with owning a home. We can be your assistant buyer. Inquire about CHAFA home loans Colorado.
Another government-assisted program to meet the need for a down payment in today’s crisis is by using the CHFA in Colorado or the CHFA Mortgage Credit Certificate (MCC) program or a similar housing authority program. This program will help first time home buyers to save money each year that you live in your home. You can claim up to 20 percent of the mortgage interest each year as a tax credit on your federal IRS tax returns. The remaining 80 percent is still eligible for interest deduction for your home’s mortgage.
For first time home buyers in Colorado, ever year they can claim a dollar-for-dollar reduction of income tax liability on 20 percent of the mortgage interest on their first mortgage. This will reduce the amount of federal taxes owed. Except for CHFA FirstStep and CHFA FirstStep Plus, CHFA MCC can be used with a CHFA First Mortgage Loan. The MCC can be issued with certain other first mortgage loans independent of CHFA.
There are certain targeted areas, which are determined by census tract, that have different income and purchase price limits that are supported by these programs and no first-time homebuyer requirements.
can also lend you money for the down payment requirement. You can still ask up to 6% of your buyer’s closing costs from the seller. This can help a lot especially if you want to save your money for other equally important expenses like basic home improvements and repair later on.
CHFA helps the lower and middle-income Coloradans to increase their capability of affording their own homes. CHFA only requires home buyers to attend homebuyers’ education to be completed. Denver CHFA offices are located centrally downtown and do take consumer calls. For you to be able to secure a CHFA loan you have to work with a CHFA approved lender. There are 13 approved lenders in Colorado.
CHFA can give up to a 3% loan. CHFA’s interest rates are competitive to market rates and as life gets tougher in Denver, the need for these mortgage programs has grown. There are also new programs that help first time Colorado home buyers in utilizing their tax credit to assist you with your down payment. For those who have recently worked on getting their credit in good standing (700+), there is a new program that offers a 3% down, 30 year fixed rate with no mortgage insurance.
As a borrower, you have to invest $1000 into the transaction when you buy or $500 if you are refinancing your home with the same requirement as attending the home buyer’s education counseling and also you must live in the house. Depending on the CHFA loan program that you select, there are also income limitations or restrictions that the CHFA imposes. Just check out all of the programs and see what best suits your need. For more information, you can call us. You would have to fill out some basic pre-approval and be assured to get approved for a CHFA loan today.