Can you get qualified? Even without a substantial down payment saved, you’ll find there are programs—such as the FHA loan program—that make it possible for you to become a first-time home buyer.
Make Your First Home Purchase Your Best-Ever Decision
Take advantage of interest rates. There’s no guarantee that interest rates are going to be this low forever. By getting out of the renter’s game and locking in low interest rates, you can begin a lifelong journey of wealth building.
Use less money down than you imagined. The concept of saving up 20% for money down against a loan can scare some first-time home buyers. But we’ll explain why that doesn’t always have to apply to you
What You Need to Know About First-Time Home Buying
According to some statistics, a majority of renters who want to buy a home don’t move forward because they’re afraid they don’t qualify! But there are plenty of programs that make it viable for lots of people—even those with poor credit—to qualify.
For many first-time home buyers, the main issue is coming up with the down payment. Many of those who would otherwise buy a home feel they would move their purchase timeline forward if they could make the down payment.
With some first-time home buyers’ terms, it’s possible to pay with a relatively small down payment, much smaller than the usually-expected 20%.
Home sales are as hot as ever, with available homes sometimes going off the market in as little as three weeks in some areas—or even less.
Find favorable terms. When you approach it the right way, your first home purchase can be a door to great terms that help you with your monthly budget.
2 Ways to Use Your FHA 203(k) Loan
Buy a Fixer-Upper (and Fix It Up)
Or... Renovate Your Current Home!
Very happy with Denver Lending. Matt, Sam and the entire team did an amazing job getting our refinance processed and approved for lower rate than what we were originally shopping for. The process went smoothly and without any hiccups, communications and their availability to answer our questions were excellent; all are a testament to the level of professionalism Matt and his team have. We highly recommend Denver Lending and we are definitely a returning customer when it comes to shopping for a new mortgage or refinance.- Robin O.
Denver Lending was a great group to work with. I had a unique home buying situation and everyone there helped to make sure we were able to get the excellent interest rate we wanted, helped get through all of our asset recognition during underwriting and even covered a last minute appraisal request. I am going to be a repeat customer with Denver Lending!- Timothy M.
Denver Lending was very easy to work with. Was able to doe everything online or over the phone. Got a great rate and everyone involved was a pleasure to work with. they even set it up to do the closing at our own table. I highly recommend them.- Rick M.
We were first introduced to Denver Lending by a friend. Since then we have used them to refinance, and fix and flips. Ryan has been great to work with, I definitely get the feeling he works for his client. He will run all the numbers, options or scenarios so we can make the best decision for us. We have no reason to use anyone else.- Natasha M.
Outstanding service. We had a difficult deadline to reach and I'd spoken with a handful of other lenders who were not confident they could get it done in within my timeframe.
Not only were they able to meet the deadline, they were super helpful and flexible throughout the process answering several questions and helping me to decide which loan product worked best for me. I highly recommend doing business with this company and I will absolutely use them again in the future.- Joseph B.
Great team- from owner to employees. Everyone was helpful, informative and on top of it all. We were able to close one week before, which demonstrated their efficiency. Painless process.- Maarten W.
I highly recommend the Denver Lending Team. They are very easy to work with, always going the extra mile to help out. My family and I just bought our first home and they made this crazy & hectic journey a LOT smoother. Highly recommend!!- Johana C.
Working with the team at Denver Lending was easy and efficient. They took the time to outline the available options, ramifications of each option and allowed me to time to make the best decision based on my needs. Everyone was professional and treated me with respect. Thank you Denver Lending team!!- Michael M.
Denver Lending is an exceptional mortgage company. They are responsive and provide excellent customer service. You don't ever have to worry that your loan won't close.- Vicki G.
Your Renovation Wish List Could Include...
Increase window size
Bring in more natural light
Finish a basement or attic
Create a mother-in-law apartment or guest space
Correct foundational issues
Protect your investment for the long-term
Add a detached garage when one does not exist
There’s room for everyone
Knock down walls
Open up the floor plan to create versatile, welcoming spaces
Flood-proof your property
Add a retaining wall to prevent expensive damage
Repair the pool
Tired of leaks and cracks? Fix the pool & start enjoying it
Expand or refresh the kitchen
Cooking is just more fun in an updated kitchen
Add square footage
Growing your family? Grow your home alongside it!
How Does a Renovation Loan Work?
Depending on the types of repairs you plan to do, you have two options when it comes to securing a FHA 203(k) Renovation Loan: Limited and Standard.
The Limited 203(k) loan
The Limited 203(k) loan is for non-structural or “cosmetic” repairs. It covers up to $35,000 in renovation costs. With a Limited loan, you can do nearly anything that doesn’t affect the home’s structure! Think kitchen and bathroom remodels, carpet and flooring replacement, painting, appliance replacement, and much more.
The Standard 203(k) loan
The Standard 203(k) loan is a loan for projects with repair costs over $35,000. It can be used for structural or non-structural repairs. With a Standard Loan, you have even more flexibility. You can expand the home’s footprint, improve accessibility for differently abled people, and even move the home to a different site.
What Do First-Time Home Buyers Need to Know About Buying a Home?
Why should I buy a home now and not rent until I can save up a massive down payment?
Because there are plenty of options for lowering your downpayment! For example, the FHA loan program, which includes loans insured by the Federal Housing Administration, is great for people with low credit scores and not a lot saved for a down payment. That isn’t to say that you shouldn’t save for a down payment—but remain open to all of the options available.
How will I afford my home?
Pre-approval for a first-time home buyer can be a major step in the process, and it’s easier than you think. A pre-approval is essentially a (conditional) promise from a lender that they can offer you the mortgage terms you need to make an offer on a house. This requires an application process that’s much simpler than you might imagine—and great for first-time home buyers who want to shop around and demonstrate to a seller that they’re serious about their offer.
Should I save for a down payment?
Absolutely. Just because you don’t necessarily have to make a 20% down payment on your first home doesn’t mean that you should eschew the process completely. Having a substantial down payment saved never hurts.
I have a low credit score. What kinds of loan programs are there for me?
If you go through the application process and make sure that your payment is in line with what you can fit within your budget (the typical recommendation is a mortgage that takes up no more than 25-33% of your household budget), then you’ll find it’s possible to afford your first home—and the process may be much simpler than you imagined
How do I get pre-approved?
In addition to the FHA loan program as mentioned in the previous answer, you should also look at your qualification for: the VA loan program, the USDA loan program, and even the Good Neighbor Next Door buyer aid program.
What should I do next?
Simple. Click any of our buttons above and find out if your first time home purchase can be as easy as we say it is here. Don’t worry about a low credit score, either—you’ll find that there are plenty of programs out there that can help.