Colorado Conventional purchase loans are the most versatile of all the loan types. They offer Colorado financing including Denver, Colorado Springs, Boulder, Fort Collins, Grand Junction, Breckenridge, Vail, Aspen and all over the great state of Colorado. They provide options for Primary, investment and 2nd home purchases.
Colorado Conventional loans are extremely flexible letting you purchase a property with as little as 3% down with no Mortgage insurance in some cases. There are several Down Payment Assistance (DPA) and First Time Homebuyer Program options available to help with the downpayment.
Conentional loans are sold to either Fannie Mae or Freddie Mac on the secondary market. They set the underwriting guidelines for the loans they purchase. Sometimes lenders hedge risk by making guidelines more stringent called investor oerlays so it always pays to shop around.
You will need a credit score above 600 for Conventioanl loans but ideally you want to be above 700 to get an attractive rate. We can help you chart a path to a Better Credit Score so you can get the lowest pyment possible. We also have a whole series of Credit Tips to help you maximize your scores.
If you put less than 20% down you will have mortgage insurance. Good news is it will drop off once you have paid the balance down to 80% of the value of the home when purchased or last refinanced. In some instances your servicer will allow you to use current market value to drop mortgage insurance. Mortgage insurance can be paid monthly or you can opt to pay a one time cost at closing and not have a monthly mortgage insurance payment. We will show you these two options side by side in a mortgage analysis so you know which option is the right one for your scenario.
Top 5 things we love about Colorado Conventional Purchase loans.
1. Purchase a home with just 3% down and low mortgage insurance rates.
2. Purchase a 1 unit Investment property with 20% down or a 2-4 unit with 25% down.
3. Mortgage Insurance can be dropped without refinancing
4. Purchase a 2nd home with a 10% down payment and primary residence rates.
5. Combine with a Down Payment Assistance product to purchase with very little out of pocket
