Whether you’re a salaried employee, self-employed, a gig worker, or a business owner, we can work with you to explore your mortgage options and streamline the process of buying a home in Colorado. Griffin Funding specializes in providing versatile home loans in Colorado. With competitive interest rates, flexible underwriting terms, and a diverse selection of mortgage programs, we can help you find a mortgage in Colorado that makes the dream of homeownership a reality.
Areas We Serve
Whether you plan to take advantage of the plentiful fresh mountain air or prefer lower elevations, we provide mortgages all across The Centennial State, including:
- Denver
- Colorado Springs
- Aurora
- Fort Collins
- Lakewood
- Thornton
- Arvada
- Westminster
- Pueblo
- Centennial
- Boulder
- Aspen
- Cherry Hills Village
- Mountain Village
- Snowmass Village
- Telluride
- Edwards
- Vail
- Columbine Valley
- Crested Butte
Once you decide which region best suits your lifestyle, you’ll need to find a mortgage that fits your housing budget.
How Do Home Loans Work in Colorado?
The home loan process in Colorado is similar to applying for a mortgage in any other state. There are three general steps that are involved in the mortgage process:
Colorado Mortgage Application Process
- Step 1:
- Submit an application with a Colorado mortgage lender.
- Step 2:
- Provide documentation for verification that you meet the loan terms.
- Step 3:
- The lender approves the mortgage, releasing the funds, and you move forward with the home-buying process.
At Griffin Funding, we can complete this entire process in under 30 days to help you make sure that you don’t miss out on the home of your dreams.
How Do I Qualify for a Home Loan in Colorado?
Qualifying for a home loan in any state depends on several critical factors, including:
Colorado Loan Qualifications
- Your credit score: Many home loans require a credit score of 620 or higher. However, other mortgage options have more flexible credit requirements. For instance, you can get a VA loan with a credit score as low as 500. In any case, the better your credit score, the lower your interest rate will usually be.
- Your debt-to-income ratio: Generally, lenders want to see a DTI ratio of less than 43% for most loan types.
- Proof of income: Typically, lenders require proof of income using W-2s. However, Griffin Funding offers alternative mortgage options such as bank statement loans and DSCR loans, which allow borrowers to qualify for a mortgage without using tax returns.
- The price of the home you want to buy: Higher priced homes are often associated with a higher mortgage cost, unless you are able to put down a significant sum with the down payment.
Colorado Mortgage Options
Griffin Funding offers several home loans for prospective buyers who are having trouble securing a traditional mortgage. Our mortgage programs for Colorado home buyers include:
Home Loan Options in Colorado
- DSCR Loans in Colorado: DSCR loans allow those who are investing in real estate and/or mortgage brokers to qualify for financing based on their debt service coverage ratio (DSCR) rather than through traditional means. By calculating the DSCR, lenders can measure a potential borrower’s operating income in relation to their mortgage debt, and thus determine whether they will be able to repay a loan.
- Asset-Based Loans in Colorado: When you take out an asset-based loan, you’re borrowing against the value of your assets. The more valuable your assets are, the more financing you can receive. This enables borrowers to tap into the equity of their assets and access financing.
- Bank Statement Loans in Colorado: If your W2s are not an accurate depiction of your income, a bank statement loan may be a better option for you. Bank statement loans rely This type of self-employed mortgage relies on 12 or 24 months worth of bank statement records to verify your income.
- Home Equity Loans in Colorado: If you have equity built up in your loan that you would like to use for other things including home improvements, or debt consolidation, you may benefit from a Colorado home equity loan where you can get cash out for some of the equity of your home, without changing the rate you have on your initial home loan.
- FHA Loans for First-Time Home-Buyers: If you are a first-time buyer in Colorado, you should consider an FHA loan. Since these loans are backed by the Federal Housing Administration, they are less restrictive and allow for down payments as low as 3.5%.
- VA Home Loans: This type of loan is available to current and veteran service members. Since this loan is guaranteed by the Department of Veterans Affairs, there is no down payment required. In addition to purchasing a new home, a VA home loan can also be used to build and improve a house or refinance your mortgage.
- USDA Loans: These loans are designed to help low-to-moderate-income buyers by providing them with the opportunity to purchase homes in eligible rural development areas with 0% down. A USDA home loan can be used for new or existing property that will be used as a permanent residence.
- ITIN Loans: Foreign nationals and non-US citizens can get an ITIN mortgage in Colorado to become homeowners without a Social Security number.
- Conventional Loans: With a conventional loan, you can access some of the most competitive mortgage rates in Colorado. While conventional loans have relatively strict qualification requirements, they’re a very common option for those looking to buy a home in Colorado.
- Private Money Loans: This loan is also referred to as a hard money loan and is beneficial for fast financing. While private money loans often have higher interest rates and shorter terms than other home loan options in Colorado, they can be a good option if you’re seeking out a streamlined approval process and quick short-term financing.
Whether you’re buying a new home or need to refinance your current mortgage, Griffin Funding is proud to offer competitive rates and diverse mortgage options that cater to our customers’ needs.
For more information about our home loans in Colorado, speak with one of our knowledgeable loan officers today!
Colorado First-Time Home Buyer Programs
In addition to an FHA loan, you may qualify for first-time-buyer assistance through the Colorado Housing & Finance Authority (CHFA). They offer a few different down payment assistance and first-time buyer programs in Colorado. Two of the lowest-rate mortgage programs offered by the CHFA are known as the CHFA FirstStep and CHFA FirstGeneration.
Does CHFA Pay Closing Costs?
As part of its down payment assistance program, CHFA will pay a portion of your down payment or closing costs in the amount of 3% of your first mortgage or up to $25,000 – whichever is the lesser amount. And, no repayment is required.
How Do I Qualify for a First-Time Home-Buyer Program in Colorado?
While this program is available to first-time buyers in Colorado, there are restrictions that may exclude some prospective homeowners from participating in the program. The general requirements for the CHFA FirstStep Program include:
- 620 or higher credit score
- Income must be within limits
- Contribution of $1,000 toward the home
- Attend a homebuyer education class
Additionally, you must meet the underwriting guidelines of the lender you’re working with. If you don’t qualify for the CHFA FirstStep Program, our loan officers can help you find the right mortgage for your circumstances.
Cost of Buying a Home in Colorado
The median selling price for homes in Colorado is approximately $543,500 as of October 2024. Keep in mind that this is just a starting point for figuring out how much buying a home in Colorado should cost. In addition to the listed price of a home, you will also need to factor in:
- Closing costs
- Down payment
- Mortgage payment
- Homeowners Association (HOA) fees
- Maintenance and repairs
- Insurance
As you can see, it’s not just the initial cost of buying a home in Colorado that should be on your radar, but the overall cost of homeownership. This is a crucial part of ensuring that you are budgeting correctly and ready to become a homeowner.
What Are the Current Mortgage Rates in Colorado?
The current mortgage rates in Colorado vary greatly between homeowners due to the many factors that are used to calculate them. And, you must also factor in that some loans are fixed-rate mortgages while others are adjustable-rate mortgages.
Overall, several factors can impact your interest rate, including:
- The type of loan you apply for
- Credit score
- Down payment amount
- Debt-to-income ratio
- Current market conditions
- Income or financial profile
Griffin Funding strives to offer competitive Colorado mortgage rates so you can feel confident that you are getting a fair rate based on your personal circumstances.
How Much Is a Down Payment on a House in Colorado?
Many people believe they need a 20% down payment to secure a mortgage in Colorado, but that’s not always the case. Several loan options allow you to buy a home with much less or even no down payment at all.
Consider whether you qualify for a VA loan or USDA loan, both of which offer no down payment options. Another popular choice for first-time home buyers in Colorado is an FHA loan, which typically only requires a 3.5% down payment. Even some conventional loans may allow for down payments as low as 3%.
Don’t let the idea of a large down payment hold you back from your homeownership goals. Reach out to Colorado mortgage lenders, explore your options, and find the best loan for you.
Apply for a Home Loan in Colorado
Reach out to Griffin Funding today to take the first step toward buying a house in Colorado. As one of Colorado’s leading mortgage lenders in Colorado, we offer a wide array of loan options that cater to all kinds of home buyers. Whether you’re looking to buy a home in Colorado, refinance your existing mortgage, or tap into your equity, we can help. And, with our Griffin Gold app you can seamlessly manage your finances, access smart calculators, view current market trends, and discover more resources to help you make an informed decision for your financial future.
Contact us today to set up a free consultation with one of our mortgage specialists.
Frequently Asked Questions
How do I choose a mortgage lender in Colorado? 
Focus on lenders with strong experience in the local market and a variety of loan options. Compare their rates and look for a lender with excellent customer service and clear communication throughout the process. Also, take a look at a lender’s reviews or ask for referrals from friends and family to ensure you’re working with a trustworthy lender.
At Griffin Funding, we guarantee competitive rates and a range of mortgage products to help you find the best solution for your home-buying journey in Colorado.
Should I buy now or wait until mortgage rates drop in Colorado?
Waiting for Colorado mortgage rates to drop can be risky because no one knows when or if they will decrease. By holding off on purchasing a home, you may end up paying rent instead of building equity. Additionally, if you buy now, you have the option to refinance your mortgage later if rates do drop. This gives you flexibility to adjust when the time is right.
Remember, current mortgage rates in Colorado are still competitive, and purchasing a home now can set you up for long-term financial growth. Learn how you can invest in your future and begin building equity.
How can I get the best mortgage rate in Colorado?
To get the best mortgage rate in Colorado, consider the following tips:
- Choose the right loan type: Some loan programs, like FHA or VA loans, offer more favorable rates, especially for first-time buyers or veterans.
- Improve your credit score: Paying down debt, making timely payments, and checking your credit report for errors can help boost your score.
- Increase your income: Higher earnings can improve your debt-to-income ratio and show lenders that you are a reliable borrower.
- Save for a larger down payment: The more you can put down upfront, the less risk the lender takes on, which could lead to a better rate.
- Work with the right lender: A lender with experience and strong customer service can guide you toward options that best fit your financial situation and help you secure a competitive rate.