This is a guest post by Bobby Kurpinsky:

Believe it or not there are still many low down payment mortage options to buyers in the state of Colorado. If you are a first time homebuyer, which means you haven’t owned a home in the past three years, and you want to take advantage of the free 8k the government is giving away via the tax credit you must be under contract by April 30^th and close on your home by June 30^th.  And if you don’t have much to put down on a home there are still options for you.

Low Down Payment Mortage Options

FHA Loan 3.5% Down Payment

FHA loans offer a great way to get in to a home with only 3.5% for a down payment. If you don’t have 3.5% down FHA allows a gift from a relative to cover the 3.5% down payment. You can pay the gift back to your relative in a matter of months when you receive the 8k tax credit back after you do you taxes or amend your previously filed 2009 taxes.  FHA offers very low rates even with credit scores downward of 620 so if you have had some credit issues in the past FHA may be a viable option.

HUD Homes $100 Down Payment

HUD homes are another way to get into a home with very little money down to buyers in the state of Colorado. HUD homes are foreclosed homes in which the former owner had an FHA loan. These loans only require the buyer to bring $100 to the table for a down payment. That is not a typo. A single Ben Franklin is all HUD asks for. Some of these homes may look like Gary Busey after a long night of drinking but with some TLC they can definitely be called home and with very little money down to boot.

CHFA Loans for Colorado

CHFA, otherwise known as Colorado Housing Finance Authority, offers great options to buyers across Colorado. CHFA allows buyers to only put $1000 down on any resale, bank owned, or home in short sale. CHFA has a number of different programs that allow a first mortgage up to 96.5% of the purchase price and a second mortgage covering  the difference that can be used for down payment, closing costs, prepaids, and escrows. Both loans have the same interest rate and are amortized over 30 years. This low down payment option is a great way to utilize the states funds to your advantage. Income and purchase price limits do apply on this program in the State of Colorado so be sure to contact me with any questions regarding those limits. One more benefit to CHFA is that they will consider a loan for borrowers with credit scores down to 580 so depending on the issues you have with your credit CHFA may be a perfect option.

USDA Rural No Money Down Payment Loans

USDA, otherwise known as United States Department of Agriculture, have a fantastic program for people living in Rural areas of Colorado. The USDA program requires no money down on homes in rural areas and no monthly mortgage insurance which gives buyers in rural areas of Colorado much more buying power. There is an upfront mortgage insurance premium of .5% rolled into the loan but no monthly mortgage insurance is required. If I lived in a rural area of Colorado I would be all over this loan like the Winter Olympics were with figure skating because I would be able to afford much more home with no down payment. Income and Purchase price limits do apply on this program so please contact me with any questions.

Bottom line is whether you are looking  for a home in the Denver Metro area, the four corners of Colorado, up to Ft Collins, back down to Pueblo or all the way in Grand Junction there are little to no money down programs a plenty just waiting for you to find a place to call home. I’m sure there are some questions for me out there so please don’t hesitate to contact me.

Bobby Kurpinsky is a Colorado Loan Consultant with Megastar Financial.  To apply for a loan contact Bobby at (720) 529-1706 or bkurpinsky@megastarfinancial.com