Buying a home is a major financial milestone, and one of the first questions most people ask is, “How much do I need for a down payment?” Fortunately, the idea that you must save 20% of the home’s price is a myth. Here’s what you need to know about down payments and how you can get into your dream home in Colorado with less upfront cash.
A down payment is the initial amount you pay toward the purchase of your home. For instance, on a $400,000 home, a 20% down payment would be $80,000. While 20% is considered ideal, it’s by no means mandatory for most homebuyers.
Loan Options with Low Down Payments
In Colorado’s competitive real estate market, there are various loan programs that require less than 20%:
- FHA Loans: These loans require as little as 3.5% down, making them popular among first-time buyers.
- VA Loans: For eligible veterans, these loans require no down payment at all.
- First-Time Buyer Programs: Many programs are available that help reduce upfront costs and even offer down payment assistance.
Why Save More?
While low down payment options exist, saving a larger amount can have long-term benefits:
- Lower monthly mortgage payments.
- Better interest rates from lenders.
- Immediate equity in your home.
Bottom Line
You don’t need 20% to buy a home in Colorado. With various loan programs and assistance options, you may need much less. Curious about how much you’d need for your dream home? Let’s discuss your goals and explore the right programs for you.
English 
Spanish