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Buying a Home with Little to No Money Down – Is it Possible in Colorado?


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Buying a home with little to no money down may seem like an impossible dream, but believe it or not, it’s quite achievable if you can qualify! With the right strategy and resources, you can become a homeowner in Colorado without putting down a large lump sum. In this blog post, we’ll share with you some tips and advice on how to get started on your path to homeownership.


bag of money in front of a wooden carved home

Get pre-approved for a home loan


To buy a home with little to no money down, you need to qualify for a mortgage. This means you need a good/decent credit score, stable income, and a reliable job history. The first step is to get pre-approved for a home loan with a lender. (Need a great one? Reach out to me.) This will give you an idea of how much you can afford and the type of home loans you’re eligible for. There are a variety of options available, including VA loans, USDA loans, and FHA loans, each with their own eligibility requirements.


stack of dollar bills with a down payment assistance form

Look for Down Payment Assistance Programs


One of the best things you can do to buy a home in Colorado with little to no money down is to look into Down Payment Assistance Programs. These programs will help you bridge the gap between your savings and the required down payment. They can come from nonprofit organizations, grant programs, or even the government. So make sure to do your research and see what programs may be available to you. (Pro tip - a great lender will do this for you). Some examples include CHFA's SmartStep program, which matches a portion of your down payment, and the Home in Five/DPA programs, which offer up to 4% of the purchase price in closing costs assistance and down payment assistance, respectively. There are also typically local programs available. In Denver, as an example, there is a Denver Metro DPA (Down Payment Assistance) program available that many of my clients have utilized!


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Look for homes that qualify for zero-down financing


Not all properties qualify for zero-down financing. Before you start looking for a home, make sure it meets the requirements for the loan program you’re interested in. For example, if you’re applying for a VA loan, the property must be located in a VA-eligible area. Similarly, if you’re applying for a USDA loan, the home must be located in a designated rural area.


2 hands shaking and exchanging money

Consider Seller Concessions


There are creative financing options for those looking to buy a home with title to no money down. One option is Seller Concessions. Seller concessions are where the seller agrees to contribute a certain amount to your closing costs - this is typically done upfront with the contract submittal. Your Realtor can also help you negotiate items during the inspection to help cover repair or replacement costs of larger home systems through seller concessions.


Chelsea Steen Realtor

Photo Credit: Kaytlyn Perez Photography


Consult with a real estate professional


Navigating the home-buying process can be complicated, especially when it comes to financing and negotiating. An experienced real estate professional, like myself, can help guide you through the process and ensure that you find the right home loan program for your needs. We can also help you navigate the local real estate market, identify homes that meet your criteria, and negotiate with the seller on your behalf.


sign that says "Home" in front of a book

It IS Possible To Buy A Home With Little To No Money Down In Colorado


Buying a home with little to no money down takes a bit of extra work, but it’s worth the effort. With the tips above, you can get started on your home-buying journey and become a homeowner in Colorado without making a large down payment. Remember to look for down payment assistance programs, monitor your credit score and debts, explore seller concessions and consider VA loans if you can qualify for one (you must be a veteran). Lastly, always keep in mind that you still need to save for other costs that come with buying a new home. With a bit of dedication and due diligence, you can find your dream home in no time and enjoy the benefits of becoming a homeowner. Have more questions? Please reach out! I'm happy to help!


Chelsea Steen Realtor

Photo Credit: Kaytlyn Perez Photography


Chelsea Steen, Realtor

740-334-9898


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