(Question) How much would I be looking at paying for a down payment on a home?
(Answer) There’s three different types of loans. There’s a FHA loan, there’s a VA loan, and there’s a conventional loan. The FHA loan is typically more towards first-time home buyers and it requires about 3.5% down of the purchase price. Then the VA loan has nothing down, there’s zero down, but you do have closing costs. The conventional loan can be 5%, 10%, 20%, 30%, whatever you want down plus closing costs so it’ll vary from loan type to loan type.
(Question) So as a newly married guy looking for my first home, I’m not part of the VA or anything like that is there any kind of assistance I could receive with my down payment?
(Answer) There are programs that are out there in Colorado Springs. There’s a CHFA program where you get a grant or assistance for your down payment. Closing costs on the other hand are still separate and that’s something that you have to think about because many times you’ll have, for example, a $200,000 home and you’ll have your down payment but you also have closing costs. The closing costs represent approximately 2.5% of the loan amount. Whatever you’re putting down you subtract that down payment out, then you get your loan amount, and you come up approximately that. Online services and online mortgage calculators are wonderful for superficial information. I strongly recommend getting a good, local, reputable lender and sit down with them and have them counsel you on what you’re doing and never have somebody sell you on something. It should be someone that’s guiding you to what your comfort range is, NOT what your qualification range is. One is comfortable and one is right at the max of what you can do.