First Time Home Buyer so What Do I Get?


Hey Everybody! It’s Stacie Duffy here, your
Denver Metro real estate resource, and in this video I wanted to talk about
First Time Home Buyer Programs. So I get the question a lot and I think there’s a lot of misconceptions with it, or misunderstandings, of “what’s
available to me because I’m a first-time buyer. I haven’t bought anything before,
so what program do I get or what discount or what tax refund or grants or
something like that”
Those do come around from time to time, but just because you
haven’t bought a home before, it doesn’t mean there’s something you get that
everybody else doesn’t necessarily. I would say they do come around more often
in economic downturns. When people are trying to help someone buy a home
who maybe couldn’t normally buy a home, or they want to spur some economic
growth and spending and things like that. Back in 2008 there was the
first-time homebuyer tax refund which was fantastic, that’s how I bought my
first home and I took full advantage of that, but they’re not out there all the time!
Timing is the biggest thing with this. I’m not saying that when the
economy is doing great that there aren’t options out there, but a lot of times
they aren’t specific to first-time buyers. I would say they’re usually restricted by
income or assets or something like that. Maybe you’ve owned a
home before and you still need some financial help, you can get that. But
anyway, I’m just going to talk about a couple of the most common ones at least
here in the state of Colorado. Depending on what state you’re in,
even what county you’re in, I know some down payment assistance programs that
are County specific. For USDA home loans, there’s
some good stuff there, but you have to be in an agricultural or rural
property, not Urban properties, all kinds of stuff. There’s a lot of different
things depending on what you’re looking for. First thing: stop wasting time watching this video if you want to know what’s
available to you right now, where you’re at, CALL YOUR LENDER!
I’m not your lender, I can’t help with that. But if you don’t have a lender,
you’re like “what’s a lender?” Call your local trusted Realtor!
If you don’t have a local trusted realtor ask your friends, your family, your co-workers for
a referral or somebody that they use that they were happy with! And interview
more than one agent, because you should be interviewing agents, as I always say…
But anyway a lender is going to be able to answer the question for you of what
options are available to you. Sometimes they need information to know
what can fit for you: so how much money do you make? what were your tax returns
the last couple of years? etc I’m just gonna speak to what’s
available here or what I’ve been running across recently here in the state of
Colorado and in the Denver metro area. One of the more common options is CHFA for
downpayment assistance here. It’s not necessarily first-time home buyers
specific. They may have some programs that are specific to that. They have some
other programs that are specific to your income, etc. But CHFA
is the Colorado Housing and Finance Authority. They usually have some
sort of down payment assistance programs out there. Depending on the timing, they
may have different ones available with different perks and benefits and all
that good stuff. Sometimes they are grants, which is essentially free money,
with some strings attached. You always have to jump through some hoops to get
free money, of course. Then sometimes there are loans, where essentially they
say “okay we know you can’t afford your closing costs of $3500” (your 1.5-2% of your purchase price) “we know you can’t afford the
closing costs, but we will help you. We will finance that closing costs into
the cost of your loan.” Even though the lender requires maybe 3% down, they say
“if you don’t have 3% and you can’t cover your closing
cost, let me help with that” But you do have to pay it back. And sometimes you
have to pay a lot for the fees to apply to get that money. Then they will
finance those fees for you into that too. So I’m not a huge fan of CHFA. I don’t
think it’s bad, I think it definitely has its place for when people are in a
specific needs situation. You definitely need to know what other options
you have though. Right now I’ve been doing a lot of first-time home buyers
with the Neighborhood Lift program. Which is a different program that’s available.
It’s only it’s a very limited time though. The last time they did this was 3
years ago, and it was limited to Denver County.
Now they’re doing it three years later and it’s limited to the five County Metro, so Denver, Adams, Arapahoe, JeffCo, and Douglas. So like
I said it’s County specific and there’s only so many spots. They started it in
September and they’re just saying okay we have so many spots available and when
all those are gone they’re gone the money is used. There’s only maybe 40 to
50 spots left so I’m trying to find everybody that wants to buy, because it’s
a down payment grant. Unlike most CHFA programs where they’re
loans and there’s a lot of fees to apply for them. Now it is specific to certain
lenders though, not all the lenders can do this. There’s a lot of puzzle pieces you gotta understand, which is why you need to talk to your
lender! Personally, it’s ridiculously amazing! So when I hear about
something like this this good, I’m going to let anybody and everybody know so
they could take advantage of it, because that’s what it’s there for: is to help
people who want to buy something that need a little help. It’s a $15,000
grant, the strings (because there’s always strings) so I’ll just throw them out
there. First the strings are you have to make less than so much money a year. I
think the income limit is $67,000 for whomever’s on the loan. Or if you’re a teacher, firefighter, EMT, police officer, they have a list of public servants that
they have a higher income limit for, and say okay if you’re one of these
people but you make up to $83K a year, then you can have access to this
money. You have a couple of classes you have to go through, and you have some
paperwork you have to submit. But you can use the money towards your down payment or your
closing costs and however you want to use it amongst that. Which I think is
just it’s ridiculously amazing! I have yet to see something else that’s
good to come across. So I’ve already closed 4 different clients with it.
I’ve got a couple more that I’m putting through the program because it’s just
amazing. My last client for example, my client closed last week
using Neighborhood Lift as a down payment assistance program. She was a
first time homebuyer but it’s not limited to first-time homebuyers, it’s
limited by income. She closed for the cost of her inspection, because that’s
not typically one of your “closing costs” that’s something you pay out-of-pocket
upfront during the under contract period. And $154!!!
Yes she had some earnest money that she had to put up front, but her neighborhood
lift down payment assistance refunded her the earnest money and the cost of
almost all of her appraisal. That $154 was part of her
appraisal cost and a credit reporting fee that they had to pull a credit report.
::mumbling:: I’M SPEECHLESS!!! It’s ridiculously amazing that someone
can BUY a townhouse, a two-bedroom townhouse, here in the Denver area, for a
$154 out of pocket! And she’s got a conventional loan!!!
Becuase the down payment assistance paid her down payment for her, and it was enough
to get a conventional loan, at a great rate!!! So anyway when there are things
like that I will definitely let all of my clients, and friends, and anyone that
will possibly listen to me, know because it is THAT GOOD! That’s why if you
have questions call a lender, or call your bank, call your Realtor, call a
couple different Realtors! There’s a lot of Realtors and lenders here in the
Denver area that don’t know about this! They’re not familiar with it. Sometimes just asking around… but anyway this is kind of a long video… Oh
ridiculously long video at this point… There are different
downpayment assistance programs out there. Definitely check and see what’s
available in your area at the time you’re looking. There’s no one answer to
this question. It depends on a lot of different things, but call your lender,
call your Realtor, call a few different Realtors, ask around, and even do some
searching online! If you have any more questions about this please
feel free to leave them down below. Like I said, I’m not a lender, this is not my
area of expertise, when I know about something good, I’m gonna let
people know about it, and it’s a question that I get a lot as far as what’s my
first time homebuyer option. If you’re liking my videos, please subscribe
to my channel I would greatly appreciate it. And if you want to contact me
directly, you can do that as well. My contact information is on my website and
the link for that is down below. Thanks so much for the time and have a
great day!

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