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Creative Home Loan Options for 2022

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With Colorado’s housing prices increasing 10% annually on average and up to 20% annually in metro areas, affordability has become an issue for some home buyers. Despite and above average income and 3% down, most folks still can’t qualify with an FHA loan let alone a conventional loan with 20% down. 

We put together some great options for the summer and fall 2022 housing market that you can consider to purchase your next home.

#1 CHFA, for the first time (and low income) home buyer

Colorado Housing and Finance Authority (CHFA) works throughout Colorado to increase the availability of affordable and accessible housing for lower income Coloradans. In short CHFA is an organization and a type of loan. In order to get one of these loans you must meet certain eligibility requirements as well as apply with and qualify with a CHFA authorized lender.

 Some of the requirements include:

  • All borrowers have a mid-credit score of 620 or higher
  • Total borrower income must not exceed CHFA’s income limits
  • Attend a CHFA-approved homebuyer education class (in person or online) prior to loan closing
  • Make a minimum borrower financial contribution of at least $1,000 toward the purchase of the home

CHFA also offers down payment assistance to help with the 3% down payment on FHA Loans. No repayment is required under certain circumstances.

#2 USDA Loan, for those who want to get away

USDA loans are mortgages with low interest and zero down payment, designed for lower income families who don’t have good credit to qualify for standard mortgages. You have to use a USDA loan to purchase a home in designated area which constitutes several rural and suburban locations. 

The different types of USDA loans include guaranteed loans, Direct, and Home Improvement. In order to qualify you must meet the following requirements in addition to several others listed on their website:

  •  Be a US citizen
  •  Have an income below the income for the area
  •  Use the new home as your primary residence
  •  Meet several other legal and financial requirements

Here at Weld County, where Malone RE serves, we have plenty of USDA eligible properties to choose from. it’s a great option for those who want some space and want to have their own home, but might not qualify using other methods.

#3 Jumbo Loan, for those with low cash flow reserves

Do you have access to a high-paying job or monthly cash-flow, but do not have access to a large down payment? Then a jumbo loan might be for you! If your dream home is in the higher price range here in Colorado say for example $750k, but you do not have the 20% down of $150k as in a conventional loan, you can procure a jumbo loan for up to $647,000 in certain counties for only 5% down. This would allow you to get the home of your dreams without having to come up with the full 20%. Check out an example break down of the numbers  here.

#4 HELOC, for those with existing properties

If you’re looking to buy some real estate such as an investment property then one other creative idea is to tap into your home’s equity using a HELOC. You can use this to buy a property outright if you have enough equity in your existing properties or you can use it as a down payment to purchase another one. Lenders  typically only let you borrow 80% to 90% of your homes value so that’s something to keep in mind when shopping to determine your price range.

 Also keep in mind that if you were to qualify for a payment for a new home you will need to factor in the monthly payment amount of the HELOC for your loan qualification for the new property.


Looking or selling in Weld, Boulder or Jefferson county? We’d love to show you around!


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