CHFA FirstStep – First Time Home Buyer Program

FHA loans are home loans insured by the Federal Housing Administration (FHA). They are a popular option among first-time home buyers due to their low down payment requirements and flexible credit standards. FHA loans are also popular with those who do not have a large down payment, who have poor credit histories, or who are self-employed.

The FHA loan program is designed to make home ownership more accessible to those who may not otherwise qualify for a conventional loan. FHA loans are backed by the government, which means that lenders are more likely to approve them. This makes them an attractive option for those who may not qualify for a regular loan.

The main benefits of FHA loans include lower down payment requirements, flexible credit standards, and lower closing costs. FHA loans also come with an upfront and annual mortgage insurance premium (MIP). This is an additional cost, but it is offset by the lower down payment and closing costs.

The FHA loan process is relatively straightforward. Once you are approved, your loan amount is based on your income, assets, and credit score. You will then need to provide the lender with documentation, such as tax returns and pay stubs, to verify your information. After all of the documentation is submitted, the lender will review your loan and make a decision.

FHA loans are an attractive option for those who may not qualify for a traditional loan. They offer lower down payment requirements, flexible credit standards, and lower closing costs. While there is an upfront and annual mortgage insurance premium, it is offset by the lower down payment and closing costs.

Key Points:
• FHA loans are home loans insured by the Federal Housing Administration (FHA).
• They are a popular option among first-time home buyers due to their low down payment requirements and flexible credit standards.
• The main benefits of FHA loans include lower down payment requirements, flexible credit standards, and lower closing costs.
• The FHA loan process is relatively straightforward.
• FHA loans are an attractive option for those who may not qualify for a traditional loan.

People Also Ask:
Q: What are the requirements for an FHA loan?
A: The requirements for an FHA loan include a minimum credit score of 580, a 3.5% down payment, and proof of income and assets.

Q: How much can I borrow with an FHA loan?
A: The amount you can borrow with an FHA loan depends on your income, assets, and credit score.

Q: How long does it take to get an FHA loan?
A: It typically takes two to three weeks to get an FHA loan.

Fthb Loans – Review

CHFA FirstStep is a great program for Colorado First Time Buyers who are looking to buy but don’t have a ton of money for down payment. Using the CHFA FirstStep Plus program allows you to buy with no money down using CHFA’s second mortgage down payment assistance option.

Here is how the CHFA FirstStep Program works:
First of all, you must be a first time home buyer (someone who has not owned a home in the most recent three years).
If you are not a first time home buyer then you must meet one of the two exceptions:
1. Be a qualified veteran
2. Purchase in a targeted area

CHFA FirstStep has income limits by County which change every year. In the Denver Metro area, as of June 2020, the income limits are $100,000 for a household of 2 or less and $115,000 for a household of 3 or more.
Targeted areas have slightly higher income limits.

There are also purchase price limits for the CHFA FirstStep program, which for 2020, are $510,400 for Denver Metro. These change each year as well and vary by County.

To be eligible you must purchase a single family home, townhome, condo or manufactured home that you plan to occupy as your primary residence.

The CHFA FirstStep program comes in two programs:
FirstStep which is a 30 year fixed FHA loan with a 3.5% down payment or…
FirstStep Plus which is the same thing but it comes with the optional second mortgage.

The CHFA FirstStep Plus program’s second mortgage is 4% of the first mortgage amount and has no monthly payments and 0% interest. Just pay it off when you sell, refinance or reach a $0 balance.

The second mortgage can be used for down payment or closing costs with the only requirement being that you contribute at least $1,000 of your own money. Normally this isn’t an issue as described through the loan calculations in the video.

All CHFA programs require a homebuyer education class to be taken by all borrowers. Right now classes are being offered online for free (normally online classes have a cost) due to COVID-19.

Helpful Links & Related Videos:
What is LTV: https://www.youtube.com/watch?v=cQN5Wi8nRJE
5½ Reasons FHA is Better than Conventional: https://www.youtube.com/watch?v=RlIkHB36FRU
FHA Upfront Mortgage Insurance Premium (UFMIP): https://www.youtube.com/watch?v=JLLOKleBUP0
FHA vs Conventional 2020: https://www.youtube.com/watch?v=5BIIaQlOsis
CHFA Purchase Price Limits: https://www.chfainfo.com/participating-lenders/single-family/forms/HA_income_purchase_limits.pdf
CHFA Income Limits: https://www.chfainfo.com/participating-lenders/single-family/forms/CHFA_Income_Limits.pdf
CHFA Comparison: https://www.chfainfo.com/participating-lenders/single-family/forms/HFProgramComparisonChart.pdf
CHFA Targeted Area Map: http://chfa.maps.arcgis.com/apps/Viewer/index.html?appid=45ad0461c31743e88135b91e2200ba15
CHFA Homebuyer Education: https://www.chfainfo.com/homeownership/Pages/homebuyer-education.aspx

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Whenever you’re ready…here are some ways we can assist with your next home purchase:
📙 Download our Homebuyer Guide: Things to Consider When Buying a Home.
https://www.lendingahand.com/guide/

🤑 Get the list of Colorado’s No & Low Down Mortgage Options so you can purchase your next home with less money than you thought possible.
https://www.lendingahand.com/l/no-low-down/

🚀 Want a boost in your credit score? Most advice about credit is generic or misleading and can hurt your home loan qualifying position. Take advantage of our Credit Booster Program and we’ll provide the exact steps you need to take to boost your credit score fast with a home purchase and mortgage pre-approval as the top priority!
https://www.lendingahand.com/l/credit-booster/

⛰️ Want a pre-approval that makes buying a home easy? Find out how our Rock Solid Pre-Approval provides you with the confidence you can buy a home and are utilizing the best home loan option to do so.
https://www.lendingahand.com/l/pre-approval/

Scott Wynn
Wynn & Eagan Team at Citywide Home Loans
Mortgage Advisor
(720) 608-5533
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