You do not need a fifth of the price saved, a perfect score, or a decade of tax returns. You need the right program, a plan for the cash, and a loan officer who has done this hundreds of times. Here is how a first purchase works at Timberline, and every program we use to make it happen.
For most programs, a first-time homebuyer is anyone who has not owned a home in the last three years. If you owned years ago, sold, and have been renting since, you likely qualify again. So does a spouse who never held title, and in many programs a single parent or displaced homemaker who only owned with a former spouse. Some Colorado assistance programs are open to repeat buyers too.
That you need a large down payment. That student loans disqualify you. That one late payment years ago is fatal. That self-employed people cannot get a mortgage. That a condo is off the table. Each of these has a program or a workaround, and most of them are on this page.
Steady, documentable income. A credit history the lender can read. Enough cash for the down payment and closing costs, from savings, a gift, or an assistance program. A property that fits the loan. That is the whole list.
Fifteen minutes with a licensed loan officer. We ask about income, debts, savings, credit, and the kind of home you want. You leave with a realistic price range, the programs that fit, and a short list of documents. No credit pull until you say so.
A quick conversation sets your price range and flags anything to fix early, like a credit item or a deposit that needs a paper trail. Shopping first and financing second is how buyers lose houses.
We collect documents, pull credit, and have an underwriter sign off on you before you find the house. Your offer then competes with cash, and the only open question at contract is the appraisal.
Down payment, closing costs, and a small cushion. We map every dollar: savings, a family gift, seller concessions written into the offer, lender credits, and down payment assistance where it fits.
We price seller credits, temporary buydowns, and closing timelines before your agent writes, so the offer is strong without being reckless. Our condo check and DTI tools help here too.
Appraisal, title, insurance, and underwriting conditions, all on one calendar with your agent. We push back on conditions that do not belong on the file. Our purchase files average about ten business days to clear to close.
Closing Disclosure three business days early, a wire you verify by phone, one signing at the title company, and keys the same day in most Colorado purchases.
Which one fits depends on your credit, income, savings, and the property. Often we layer two: a first mortgage plus an assistance second. Details and current availability are on the loan programs page.
Fannie Mae and Freddie Mac programs, including HomeReady and Home Possible, that let first-time buyers put down far less than the traditional figure. Mortgage insurance is cancelable once you build equity, and pricing is strong for good credit.
Conventional →The most forgiving mainstream program on credit and debt-to-income, with a low down payment that can come entirely from a gift. Ideal when the score is still recovering or the DTI is tight.
FHA →For eligible veterans, service members, and some surviving spouses: no down payment in most cases, no monthly mortgage insurance, and among the lowest rates available. If you served, start here.
VA →No down payment for eligible homes in rural and outer-suburban areas, which cover more of Colorado than most buyers expect. Income limits apply.
USDA →Grants, forgivable seconds, and deferred seconds from CHFA and national programs, layered on a conventional or government first mortgage. Some cover the entire down payment. Most require a short homebuyer education course.
DPA →If your score is the obstacle, we build a written plan to raise it before you apply, at no cost. Many first-time buyers gain a pricing tier or two in weeks by paying the right balances in the right order.
Credit help →Self-employed or gig income that looks small on tax returns can qualify on bank deposits instead. First-time buyers use these programs more than you would guess.
Non-QM →A second mortgage at purchase that reduces the first loan and avoids mortgage insurance, for buyers with some savings who want to keep more of it in reserve.
HELOC and seconds →Not a program, but often the biggest lever. A seller concession can cover closing costs or fund a temporary buydown that lowers your first years of payments. We price it into the offer before it is written.
How concessions work →| Bucket | What it is | Where it can come from |
|---|---|---|
| Down payment | Your share of the price. Requirements range from zero on VA and USDA to a modest share on FHA and first-time conventional programs. | Savings, a documented family gift, a gift of equity, down payment assistance, sale of an asset, a 401(k) loan. |
| Closing costs and prepaids | Lender and title fees, recording, the first year of insurance, prepaid interest, and the opening escrow deposit. Separate from the down payment and easy to forget. | Seller concessions written into the contract, lender credits in exchange for a slightly higher rate, gift funds, some DPA programs. |
| Cushion | Money left after closing for the move, the first repair, and the first tax bill. Some programs require reserves; you should want them regardless. | Savings you deliberately did not spend on the house, which is why we do not push buyers to the top of their approval. |
Every dollar needs a paper trail. Two months of statements, an explanation for unusual deposits, and a gift letter for family money. Cash kept at home cannot be used until it has been deposited and seasoned. The assets section of our knowledge base walks through the rules.
Maybe, maybe not. Mortgage scores differ from app scores, FHA accepts lower scores than conventional, and a written credit action plan can move a score materially in weeks. We look before we assume. Read about credit help →
What matters is the monthly payment the program counts, not the balance. Income-driven plans and documented payments change the math, and the rules differ between conventional and FHA. Bring the loan details to the first call.
Two years of returns is the standard path, and bank statement programs are the alternative when write-offs make taxable income look small. Both are routine here.
Condos are fine when the project passes review, and when it does not, we have non-warrantable programs. Run the building through our condo check before you write.
A decline at one lender is that lender's guideline, not a verdict. Most declined first-time buyers we see were a program mismatch. Send us the file.
You can renegotiate, cover the gap, or walk away under the appraisal contingency. We talk through the risk before you write, and we structure offers so you are not stuck.
The Colorado Housing and Finance Authority is the state's main source of down payment assistance and first-time buyer programs, delivered through participating lenders like Timberline. Most CHFA programs require a homebuyer education class, which can be done online, and have income and purchase price limits by county.
Many newer subdivisions carry a metropolitan district levy that makes the tax bill much higher than the county rate suggests. Colorado taxes are also paid a year in arrears, so a new build's second-year bill can jump. Ask for the actual tax bill before you offer.
Colorado's standard purchase contract has a dates and deadlines table for inspection, appraisal, loan, title, and HOA documents. Miss one and you can lose your earnest money or your right to walk. Your agent and loan officer should work from the same table.
Bind homeowners insurance early, especially in the foothills. Test for radon. Ask about roof age, because hail history drives premiums along the Front Range. None of these are deal-killers; all of them are better known before closing.
See the full monthly payment with taxes, insurance, HOA, and mortgage insurance for any price and down payment.
Open the calculator →Find out where your debt-to-income ratio lands before you apply, and what would lower it.
Check your DTI →Every term from application to closing, the full process, and an A to Z glossary, written for first-time buyers.
Read the knowledge base →Dave Glotfelty, Chief Lending Officer · NMLS #857935
A rate quote takes a couple of minutes. A first call takes fifteen. Either way you talk to a licensed loan officer, not a form letter. No obligation.
