Loans Buy a home First-time buyers
First-time buyer loans in Southwest Colorado
You can buy with far less than 20% down. Here are the loans built for first homes, how they compare, how down payment help really works, and the steps from first call to keys.
New to this loan? Start here: How much house can you afford? Step 1 of 14 on the guided path Your first home
Your options at a glance
| Loan | Minimum down | Best for |
|---|---|---|
| VA | None | Veterans, service members and surviving spouses. Often the best option for those who qualify |
| USDA | None | Rural and small-town homes, moderate income |
| HomeReady / Home Possible | 3% | Good credit, income within 80% of area median |
| HomeOne and standard 97% | 3% | Good credit, any income |
| FHA | 3.5% | Credit still being built, or a family co-borrower |
If you qualify for a VA loan, it is often the best mortgage available to you. VA loans have no down payment, no monthly mortgage insurance, typically the lowest rates, limited closing costs and flexible qualifying, which is why VA is the first loan we price for anyone who has served.
The steps from first call to keys
- Talk it through. A short call about income, savings, credit and timing. We do not order your credit report at this stage.
- Get your Mortgage Plan. Every option that fits, side by side: payment, cash to close and long-term cost.
- Complete a homebuyer course if your loan requires one. We tell you which courses your loan program accepts; several are free online.
- Get pre-approved and shop for homes with a clear budget.
- Make an offer, then close. We handle the lender, appraisal and paperwork, and keep you informed.
Down payment help in Southwest Colorado
Assistance is rarely free. Most of it is a loan secured by a second lien on your home, repaid when you sell or refinance, and only some is a grant. It may or may not be right for you, so before you apply for any of it we show your options with and without assistance, side by side.
- HomesFund (Durango): down payment loans for Montezuma, La Plata, Archuleta, Dolores and San Juan counties, secured by a lien on the home.
- CHFA: statewide grants and second mortgages paired with a CHFA first mortgage. Compare the total cost before you choose.
- Gifts from family: allowed on every loan type with a gift letter.
Calculators and guides
- Rent or buy calculatorWhat owning builds against renting and investing the difference.
- Mortgage payment calculatorYour full payment for each loan type, and where any payment goes.
- Best mortgages for first-time buyers in Southwest ColoradoHow the low-down options compare here
- CHFA loans: what down payment help really costsCompare before you take assistance
- Showing you the moneyHow cash to close is calculated
- Affordability calculatorA price range from your income and debts, against each loan type's guideline.
- Which loans fit my score?Which loan types usually fit your credit score.
- Down payment by loan typeThe down payment, loan and cash to close on each loan type.
- Budget BusterWhat everyday extras cost in a year, and how fast a down payment builds when some stop.
Common questions
Am I a first-time buyer if I owned a home years ago?
Yes, if you have not owned a home in the past three years. Some single parents and displaced homemakers also qualify even with recent ownership.
How much do I really need to buy a home?
Plan for the down payment (as low as zero), closing costs (often 2% to 5% of the loan amount, which sellers or programs can help with) and a small cushion. Your Mortgage Plan shows the exact cash to close for each option.
Should I use CHFA down payment assistance?
Sometimes it helps, but it is not free. Compare the total cost first. Here is how to compare.
Do I need perfect credit?
No. FHA allows scores down to 580 with 3.5% down (500 with 10% down), and VA and USDA set no official minimum. Better credit lowers your cost, and we can show you which changes matter most.