4 Misconceptions Millennials Have About Buying a Home in Denver

When it comes to buying a home in Denver, millennials are moving much slower than previous generations. Part of the reason is because there are some major misconceptions that make millennials not want to buy a home.

Before you wait too long to buy or jump into the market with little knowledge, you should try to find out everything there is to know about buying a home. That’s why in this blog, we want to help debunk the top four misconceptions millennials have about buying a home in Denver.

Misconceptions Millennials Have About Buying a Home in Denver

1 – Denver’s Housing Market is Too High to Buy

The latest craze in the Denver real estate market is talking about how high the market is. Many people, specifically millennials, are under the impression that the housing market is too high to buy right now — however, that’s no longer the case.

According to the Denver Post and the Denver Metro Association of Realtors, the market is beginning to cool down. This is great for buyers in the area because when there’s less interest in a home, the seller will typically lower their asking price. It’s hard to predict the future when it comes to the housing market, but right now it’s in the buyers court.

2 – Paying Rent is Cheaper

A lot of millennials are still paying rent because they think it’s more affordable than buying a house. However, paying off your mortgage can actually result in a lower monthly payment. Especially because the rent prices in Denver seem to increase every year.

Also paying off your mortgage each month allows you to invest in a property and create equity, whereas paying rent does not benefit you in any way longterm. If you’re already paying a significant amount in rent each month, you should definitely look into becoming a homeowner.

3 – I Can’t Afford the Down Payment

If you’re worried that you can’t afford the down payment on a house, then rest assured. There are many programs designed to help you make the payment. Once you speak with a mortgage broker, they can help you determine if you qualify for a local, state or federal program.

Through FHA, USDA and VA loans, along with down payment assistance programs, there are plenty of options out there. The FHA loan can help you lower your down payment 3.5 percent. The USDA loan could help so you don’t have to pay any down payment at all. Then the VA loan is for veterans that have served in the military and can help with the payment.

4 – I Need to Pay My Student Loans First

According to Market Watch, 83% of non-homeowners said the reason they can’t buy a home is because of their student loan debt. Many millennials believe that because they have to pay off their student loans, they will have a high DTI and won’t be able to save enough money to buy a house.

However, once you meet with a lender, you’ll see that there are a lot of options out there that can help you buy a house, even with student loan debt. The lender will take a look at your DTI, but they will also consider how much money you make, how long you’ve been at your job and how large your down payment is before they determine if you’re eligible for a loan. This means your DTI isn’t the only factor used when it comes to getting a loan for your house.

Find a Home Today!

Are you ready to start your search and find a home today? Buying a home in Denver can be easier and more affordable than you think. Plus, now that you know the truth about buying as a millennial, you can look into the best options for you.

If you’re looking for homes for sale in Denver CO, give West + Main Homes a call. We’re

Denver’s top real estate firm and we help people find and sell homes throughout the Denver Metro Area. When you’re ready, give us a call at 720-299-6635 or send us an email at hello@westandmainhomes.com.

5 Common Mistakes that Borrowers Should Avoid

It’s is very common for Mortgage Loan Originators to provide inaccurate credit tips when working with their borrowers.


So we put together a list of things NOT to do when trying to improve a borrowers credit.


Don’t do these things:


1. Don’t Pay Off Collections or “Charge Offs”. If you want to pay off old accounts, do it through escrow, making sure that the debt is yours. Request a “letter of deletion” from the creditor.


2. Don’t Close Credit Card Accounts or it may appear that your debt ratio has gone up. It also affects other factors in the score, including credit history.


3. Don’t Max Out or Over Charge Credit Card Accounts. Keep your balances below 40% of their limit during the process. Pay down balances if possible.


4. Don’t Consolidate Your Debt. When you consolidate all of your debt onto one or two credit cards, it will appear that you are “maxed out” on that card and you will be penalized.


5. Don’t Do Anything That Will Cause A Red Flag To Be Raised By The Scoring System. This includes adding new accounts, co-signing on a loan or changing your name or address with the bureaus.


Reverse Mortgage Counseling – Common Questions

Reverse Mortgages require the applicants to go through HUD-Approved counseling before your approval can be issued. Here are the most common questions we hear, and our responses:

  • “Which counselor should I choose?” – A list of HUD-approved, third-party counselors near your area will be provided to you. You may contact any of the eligible counselors on this list to schedule a session.
  • “Do I have to go somewhere in person?” – In most states, including Colorado, counseling can be done on the phone. The session will last about an hour.
  • “Why is counseling necessary?” – Educational counseling is a requirement of the U.S. Department of Housing and Urban Development. This is done to ensure that borrowers are well-informed about the reverse mortgage.

To learn more about Reverse Mortgages, or apply quickly, give us a call or shoot us an email to info@cmglending.com


Colorado Mortgage Group can now offer $679,650 Conventional High-Balance loan program

On March 1st, 2018, Colorado Mortgage Group will offer conventional high-balance loans in Colorado, providing access to a more cost-effective loan product in areas that previously lacked high-balance loans.

Currently, only 7% of U.S. counties (220 out of 3,234) have access to loan amounts over $453,100, through FHFA conforming loan limits, with the most expensive areas going up to $679,650. For the rest of the country, the only option is a true jumbo loan, which comes with higher fees, additional guideline requirements and stringent overlays.

We are filling this gap by offering a conventional high-balance loan program that covers every county in Colorado. The program gives consumers access to a $679,650 loan amount, competitive rates, a streamlined underwriting process and the accessibility of an $849,570 purchase price with a 20% down payment.

With lower rates, more flexible guidelines and fewer requirements than jumbo, Conventional High Balance is popular with many lenders.

Guidelines of this High-Balance Colorado Loan include:

  • 680 minimum FICO
  • 43% debt-to-income
  • 80% loan-to-value
  • Primary and second homes
  • Average turnaround time of 15 days or less from submission to closing

Some areas of Colorado have an average purchase price well above the Conforming loan limits and High-Balance Loan Limits. Jumbo loans often have more rigorous requirements than conventional loan limits. This is a great opportunity for home-buyers who might otherwise not be able to qualify for a home loan.

2018 VA Loan Limits in Colorado

VA does not set a cap on how much you can borrow to finance your home. However, there are limits on the amount of liability VA can assume, which usually affects the amount of money an institution will lend you. The loan limits are the amount a qualified Veteran with full entitlement may be able to borrow without making a downpayment. These loan limits vary by county, since the value of a house depends in part on its location.

The basic entitlement available to each eligible Veteran is $36,000. Lenders will generally loan up to 4 times a Veteran’s available entitlement without a down payment, provided the Veteran is income and credit qualified and the property appraises for the asking price.

VA county loan limit:

  • VA’s 2018 Loan Limits are the same as the Federal Housing Finance Agency’s limits
County Name 5-Digit County Code 2018 Loan Limit
1 Unit
2018 Loan Limit
2 Unit
2018 Loan Limit
3 Unit
2018 Loan Limit
4 Unit
ADAMS 08001 $529,000 $677,200 $818,600 $1,017,300
ALAMOSA 08003 $453,100 $580,150 $701,250 $871,450
ARAPAHOE 08005 $529,000 $677,200 $818,600 $1,017,300
ARCHULETA 08007 $453,100 $580,150 $701,250 $871,450
BACA 08009 $453,100 $580,150 $701,250 $871,450
BENT 08011 $453,100 $580,150 $701,250 $871,450
BOULDER 08013 $578,450 $740,500 $895,100 $1,112,400
BROOMFIELD 08014 $529,000 $677,200 $818,600 $1,017,300
CHAFFEE 08015 $453,100 $580,150 $701,250 $871,450
CHEYENNE 08017 $453,100 $580,150 $701,250 $871,450
CLEAR CREEK 08019 $529,000 $677,200 $818,600 $1,017,300
CONEJOS 08021 $453,100 $580,150 $701,250 $871,450
COSTILLA 08023 $453,100 $580,150 $701,250 $871,450
CROWLEY 08025 $453,100 $580,150 $701,250 $871,450
CUSTER 08027 $453,100 $580,150 $701,250 $871,450
DELTA 08029 $453,100 $580,150 $701,250 $871,450
DENVER 08031 $529,000 $677,200 $818,600 $1,017,300
DOLORES 08033 $453,100 $580,150 $701,250 $871,450
DOUGLAS 08035 $529,000 $677,200 $818,600 $1,017,300
EAGLE 08037 $636,150 $814,500 $984,525 $1,223,475
ELBERT 08039 $529,000 $677,200 $818,600 $1,017,300
EL PASO 08041 $453,100 $580,150 $701,250 $871,450
FREMONT 08043 $453,100 $580,150 $701,250 $871,450
GARFIELD 08045 $679,650 $870,225 $1,051,875 $1,307,175
GILPIN 08047 $529,000 $677,200 $818,600 $1,017,300
GRAND 08049 $453,100 $580,150 $701,250 $871,450
GUNNISON 08051 $453,100 $580,150 $701,250 $871,450
HINSDALE 08053 $453,100 $580,150 $701,250 $871,450
HUERFANO 08055 $453,100 $580,150 $701,250 $871,450
JACKSON 08057 $453,100 $580,150 $701,250 $871,450
JEFFERSON 08059 $529,000 $677,200 $818,600 $1,017,300
KIOWA 08061 $453,100 $580,150 $701,250 $871,450
KIT CARSON 08063 $453,100 $580,150 $701,250 $871,450
LAKE 08065 $625,500 $800,775 $967,950 $1,202,925
LA PLATA 08067 $453,100 $580,150 $701,250 $871,450
LARIMER 08069 $453,100 $580,150 $701,250 $871,450
LAS ANIMAS 08071 $453,100 $580,150 $701,250 $871,450
LINCOLN 08073 $453,100 $580,150 $701,250 $871,450
LOGAN 08075 $453,100 $580,150 $701,250 $871,450
MESA 08077 $453,100 $580,150 $701,250 $871,450
MINERAL 08079 $453,100 $580,150 $701,250 $871,450
MOFFAT 08081 $453,100 $580,150 $701,250 $871,450
MONTEZUMA 08083 $453,100 $580,150 $701,250 $871,450
MONTROSE 08085 $453,100 $580,150 $701,250 $871,450
MORGAN 08087 $453,100 $580,150 $701,250 $871,450
OTERO 08089 $453,100 $580,150 $701,250 $871,450
OURAY 08091 $453,100 $580,150 $701,250 $871,450
PARK 08093 $529,000 $677,200 $818,600 $1,017,300
PHILLIPS 08095 $453,100 $580,150 $701,250 $871,450
PITKIN 08097 $679,650 $870,225 $1,051,875 $1,307,175
PROWERS 08099 $453,100 $580,150 $701,250 $871,450
PUEBLO 08101 $453,100 $580,150 $701,250 $871,450
RIO BLANCO 08103 $453,100 $580,150 $701,250 $871,450
RIO GRANDE 08105 $453,100 $580,150 $701,250 $871,450
ROUTT 08107 $625,500 $800,775 $967,950 $1,202,925
SAGUACHE 08109 $453,100 $580,150 $701,250 $871,450
SAN JUAN 08111 $453,100 $580,150 $701,250 $871,450
SAN MIGUEL 08113 $625,500 $800,775 $967,950 $1,202,925
SEDGWICK 08115 $453,100 $580,150 $701,250 $871,450
SUMMIT 08117 $625,500 $800,775 $967,950 $1,202,925
TELLER 08119 $453,100 $580,150 $701,250 $871,450
WASHINGTON 08121 $453,100 $580,150 $701,250 $871,450
WELD 08123 $453,100 $580,150 $701,250 $871,450
YUMA 08125 $453,100 $580,150 $701,250 $871,450

CHFA SmartStep Program

CHFA SmartStep Program

CHFA SmartStep purchase mortgage program is open to home-buyers that have a mid credit score of 620 or higher. This program features CHFA’s lowest mortgage interest rate.  It features FHA, VA, and USDA Rural Development. If you qualify, you may also pair CHFA SmartStep with CHFA’s down payment and closing cost assistance programs.  You may also add a CHFA Statewide Mortgage Credit Certificate (CHFA MCC) for an annual tax credit. Continue reading

CHFA Advantage

CHFA Advantage

Do you have a minimum mid credit score of 680? It could be possible for you to purchase or refinance with a 30-year fixed rate mortgage with only 3 percent down and no mortgage insurance.  On a traditional loan borrowers would need to contribute 20 percent down to avoid paying for costly mortgage insurance (MI). Continue reading