Ready to Make Your First Big Move?

See how you can finance it

Who's Considered a First-Time Buyer in Colorado?

You are a first-time buyer if:

  • — You've never owned a home, or
  • — You haven't owned a home in the last 3 years, or
  • — You're married to someone who has owned, but you personally haven't in the last 3 years

That last point matters. Married couples can often still qualify as first-time buyers even if only one spouse meets the test.

Certain Colorado counties and cities may periodically offer first-time homebuyers (FTHB) a small grants or down payment assistance help on ceonventional and FHA products. It's best to inquire with your city or county for the most up to date information and eligibility.

Buying your first home comes with a lot of new terms and a lot of options. The good news: there's likely a program made for your exact situation, no matter how your income is documented or the home price you're targeting.

Below is a plain-language look at the most common first-time buyer programs we help Colorado buyers use, including options for self-employed and 1099 buyers who don't have traditional tax returns to show.

Compare Your First-Time Home Buyer Options

Every program above gets you to the closing table a slightly different way. Here's how they stack up side by side.

FTHB Program Comparison
Category FHA VA USDA Conventional Jumbo Non-QM
Minimum down payment 3.5% 0% 0% 3-5% 10% 10%
Tax returns required Yes Yes Yes Yes Yes No
Who it's best for Average or below-average credit Veterans, active duty, surviving spouses Rural/suburban buyers, income-eligible Steady W-2 income, good credit Borrowers purchasing above county's conforming limits Freelancers, 1099 workers, business owners
Main trade-off Mortgage insurance for the life of most loans Must have qualifying military service Property must be in an eligible area Low down payment means a monthly PMI fee Larger down payment & higher credit score required Interest rate is .50-1.50% more and tied to credit score and LTV

Which Loan Option Best Fits Your Situation?

The right starting point depends on more than your down payment. Your military status, location, credit profile, income documentation, and target home can all affect which options are worth exploring.

FHA loan icon

FHA Loan

Consider this option if you're concerned that your credit history or limited cash reserves could make conventional financing harder to qualify for.

FHA financing can be a useful starting point when credit flexibility is more important than the conventional route.

VA loan icon

VA Loan

If you've served in the military, VA financing should be part of your first-home search before assuming a conventional mortgage is your only option.

Eligibility is based on qualifying military service rather than first-time buyer status alone.

USDA loan icon

USDA Loan

Buying outside a major metropolitan area? USDA financing may be worth investigating if the property is in an eligible location.

This option makes geographic eligibility an important part of the home search, not just the mortgage application.

Conventional loan icon

Conventional Loan

This may be a natural starting point if you have established credit, consistent income, and a straightforward employment history.

It is also worth comparing conventional financing against government loan options before making a decision.

Jumbo loan icon

Jumbo Loan

Your first home doesn't have to be a starter home. If you're purchasing a higher-priced property, conventional loan limits may become the issue rather than your first-time buyer status.

Jumbo financing gives higher-value purchases their own qualification path.

Self-employed mortgage icon

Non-QM Loan

If your tax returns don't fully reflect the income your business generates, traditional mortgage underwriting may not tell the complete story.

Options include 12 months of bank statements, 1 or 2 year P&L, 1099's, asset-based, and other alternate income documentation.

Self-employed or receive 1099 income?
Estimate your qualifying income using our bank statement mortgage calculator .

First-Time Buyer Questions We Hear Often

What credit score do I need to buy my first home?

Minimum credit scores vary by program. They start at 580 and climb higher for jumbo. A higher credit score usually means a lower down payment and a better rate.

Do first-time buyer programs have income limits?

Some do and some don't. USDA loans and certain conventional programs base eligibility on your county's income limits. FHA, VA, and jumbo loans generally do not.

What should a first time home buyer's credit report have?

Ideally, the lender wants you to have a credit history with (3) tradelines reporting for 24 months (credit card, auto, or student loans). If you only have one of the three, the lender may accept alternate credit such as a utility bill (cell phone or cable TV).

What closing costs can I expect to pay?

When you apply for a purchase home loan, there will be closing costs once you're at the end of the loan process. This can add up to a hefty amount of funds. See these common questions for a breakdown list of fees for examples

What documents will I need to provide?

All loan programs require proof of income, such as pay stubs, W-2s, or tax returns. If your income doesn't show up on traditional underwriting standards, there's alternate documentation options from financial institutions or a licensed tax preparer.

Ready to See What You Qualify For?

Tell a Colorado mortgage expert about your income situation and target price, and we'll reply back with your options within 24 hours.

Talk to a Loan Officer

Areas Served

We serve borrowers throughout the state of Colorado which includes these cities: