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Conventional loans are by far the best deal for the consumer.  A conventional loan does not have mortgage insurance, but bears the burden of requiring more money down.  Typically we see that a conventional loan requires 20% down.  Although, currently there are conventional programs that require as little as 5% down.  Credit score also plays a major role in the ability to obtain conventional financing.  A person with a low credit score may not be able to qualify for conventional financing, and may be forced to use FHA, VA, or other government programs to obtain a new mortgage.

This loan is a 100% product.  That means that someone can loan the ENTIRE cost of the home.  there are of course some restrictions.  First, you cannot make more than 115% of the Median income for the area. Second, there are geographic limitations.  The area the home is located in must qualify as a Rural Area according to USDA.  The loan term is typically for 30 years, and must be in a condition acceptable for the lender.  This program has fit quite well in our community in the recent years.  It is a better deal than FHA for the consumer as the Mortgage insurance is significantly less.

FHA has a few different options for Buyers.  There is the standard 203b loan program which is avaiable to anyone who does not have an FHA loan that is purchasing a home to live in.  It is generally a 3.5% down program, but is accompanied by a steep upfront mortgage insurance, as well as a high monthly mortgage insurance.  However, if you have less than stellar credit, and make decent income, this may be one of your only options.  The other program is a "fix up" program that is called 203k.  This program allows the Buyer to purchase the home, and then make repairs or alterations using lended money.  It's a great option for homes that need a little work... but be careful... the loan process is a bit more lengthy than a standard 203b.

CHFA stands for the Colorado Housing and Finance Authority.  There are several CHFA programs, and CHFA seems to always be bringing new products to the table.  This program usually is a combination 1st and 2nd loan.  The 1st loan is a traditional 203b FHA loan.  CHFA offers a 2nd loan to help cover the cost of the 3.5% down payment requirement.  This allows a purchaser to have as little as $1000 down and still be able to purchase a home.  This program is great for areas that do not qualify for USDA financing.  CHFA also has education programs about affordable housing and finance that I highly reccommend any First Time Homebuyer to take advantage of.

A VA loan is a benefit for current or past military personel, and their spouses.  It offers veterans with a reduced, or very competative interest rate, as well as the ability to loan 100% of the homes value.  Also, there is no private mortgage insurance on VA loans.  You can resuse the benefit over and over, not just on the first home.  This program is great if you can take advantage of it, and is one of the best loan programs around.

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