Colorado Mortgage

Hopeful Colorado homeowners have a plethora of loan programs to choose from, and Arnaiz Mortgage is here to help you find the perfect fit for your home ownership needs.

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Unlock Your Dream Home: Mastering Colorado Mortgage Options

The Colorado housing market is vibrant, and there are many mortgage programs available to fit any need. This includes Federal Housing Administration and Veterans Affairs loans, as well as conventional mortgages. You can also choose between a fixed rate and adjustable-rate mortgage depending on your home ownership goals. We’re here to assist you in finding the right fit for your specific needs and getting you a competitive interest rate to lower your monthly payment.

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Your Guide to Colorado Mortgage Requirements

The requirements for your mortgage will differ depending on which program you choose, but all have minimum credit score, debt ratio, and down payment requirements. These metrics not only determine whether you will get approved, but they can also influence how much you pay in interest every month.

FHA and VA loans are backed by the government, which means that the lender will approve loans for those with less-than-perfect credit. You will need, at minimum, a 500 credit score, though you will have to pay at least a 10% down payment. There’s no maximum income, though a lender may not approve you if you have a debt-to-income ratio higher than 57% at the very maximum.

A conventional mortgage requires a stronger borrower profile, including at least a 620 credit score and a DTI of 43% or less. Down payments of less than 20% mean you need to pay private mortgage insurance premiums.

To qualify for a lower interest rate, borrowers should work to build their credit profile as much as possible and save up for a larger down payment, as this will help you lower your monthly mortgage payment.

Colorado Assistance Programs and Grants

There are a number of closing cost assistance and down payment assistance programs available to help you save money on the upfront costs of a home. The Colorado Housing and Finance Authority can provide a grant of up to 3% of your first mortgage or $25,000, whichever is lower. This grant requires no repayment and is only available for a 30-year fixed-rate loan.

You can also choose a second mortgage loan, which provides you either 4% of the mortgage or $25,000, whichever is lesser. You will only need to repay this if you pay off the original mortgage, sell the home, refinance, or the home is no longer your primary residence. There are additional city-specific down payment assistance programs in Denver, Aurora, Boulder County, and Pueblo County.

In some places, you can also find property tax relief programs, helping you better afford your property taxes so you can stay in your home.

Why Choose Arnaiz Mortgage for Your Colorado Mortgage Needs?

Our team is committed to ensuring you have a budget-friendly monthly payment by seeking out competitive interest rates available in Colorado.

By working with numerous Colorado mortgage lenders, we help you find loan terms based on your financial goals, whether that is an adjustable rate mortgage with a low-interest introductory rate followed by an adjustment period, or a 30-year fixed-rate program for those who intend to stay in their home for a long time.

One of our loan officers will work through all the loan details with you so that you’re perfectly prepared for your monthly payments and don’t borrow more than you can afford. We can also help you find a great Colorado refinancing option when you’ve built up equity.

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Frequently asked questions about Colorado Mortgage

  • What is the mortgage rate in Colorado right now?

    Your interest rate depends on your borrower profile and the loan type you choose. A lender charges more to those who have a lower credit score or high debts to protect their investment.

    Current mortgage rates in Colorado are the 6’s.

    As interest rates change frequently, you should check back every several weeks to ensure you pay a percentage you are comfortable with.

  • Does Colorado have mortgages?

    There are numerous Colorado mortgage lenders to choose from, all of whom offer different products. First-time homebuyers purchasing a single-family home often find that FHA loans allow them a lower interest rate, minimal closing costs, and smaller down payments.

    Other borrowers have another set of options: if you have a strong credit profile and wish to buy larger homes beyond the FHA loan limit, choose conventional mortgages thanks to their wide availability; you can find these loan options from many different lenders, including a bank, credit union, or private lender.

    Arnaiz Mortgage helps homeowners find the perfect option for their specific needs, ensuring competitive interest rates.

  • What is the average down payment on a house in Colorado?

    Colorado is one of the most expensive places to buy your dream home, so the average down payment is approximately $75,300. Thankfully, there are multiple down payment assistance programs available throughout the state that can reduce this upfront expense and ensure you can still afford the perfect property.

  • What credit score do you need to get a home loan in Colorado?

    If you’re seeking government-backed mortgages like an FHA loan in Colorado, you can have a credit score as low as 500, though these borrowers must pay higher down payments. Colorado VA mortgages and conventional mortgages usually have a minimum credit score of 620. The higher your score and the higher your income in relation to your debts, the more favorable interest rates you can access, so it’s crucial that you work hard and raise your score before you reach out to lenders.