HOME FINANCING · CO

Home Financing Guide for Denver County, Colorado

Buying a home in Denver County is a big step, and there are real local resources — credit unions, CDFIs, and state programs — designed to help solo contractors, immigrant families, and first-time buyers get there. This guide walks you through what home financing looks like in Denver, who qualifies, what paperwork you'll need, and which local organizations can actually help you. Federal programs like FHA and VA loans are useful tools, but the local intermediaries listed here are where you should start. Take your time, ask questions, and never let anyone rush you into signing anything.

§ 01 — What it is

What Is Home Financing?

Home financing means borrowing money to buy a place to live — a house, a condo, a townhome, or a small multi-unit property (up to four units). The lender provides most of the purchase price, and you repay it over time, typically 15 to 30 years, with interest. Your monthly payment usually covers the loan principal, interest, property taxes, and homeowners insurance — often bundled together under the term PITI. In Denver County, home prices have risen significantly over the past decade. As of 2024, the median home price hovers around $550,000–$600,000. That means understanding your financing options — and finding the right local partner — matters more than ever. You don't need a perfect credit score or a large down payment to get started, but you do need a clear picture of your finances and a lender who will work with your specific situation. Common home loan types you'll encounter: • **Conventional loans** — offered by banks and credit unions, usually requiring 3–20% down and a credit score of 620 or higher. • **FHA loans** — backed by the federal government, allowing down payments as low as 3.5% and credit scores from 580. • **VA loans** — for eligible veterans and active-duty military, often with no down payment required. • **USDA loans** — for rural areas; most of Denver County does not qualify, but some outer areas may. • **ITIN loans** — for buyers without a Social Security Number who have an Individual Taxpayer Identification Number. Several Denver-area lenders offer these. • **CHFA loans** — Colorado Housing and Finance Authority loans are a state-level option with down payment assistance and competitive rates, especially for first-time buyers.

§ 02 — Who qualifies

Who Qualifies? A Denver County Perspective

Denver County is one of Colorado's most economically and culturally diverse counties. The local workforce includes a large number of solo contractors, gig workers, hospitality employees, healthcare workers, and immigrants — many of whom have non-traditional income or credit histories. The good news: qualifying for a home loan is not limited to salaried employees with long U.S. credit histories. **Income:** Lenders look at your ability to repay. If you are self-employed or a solo contractor, lenders typically average your last two years of net income from tax returns. Some local lenders and credit unions also accept bank statement loans (12–24 months of bank statements instead of tax returns) for buyers whose reported income doesn't reflect their true cash flow. **Credit:** Most conventional loans require a minimum score of 620. FHA loans go as low as 580 (or even 500 with a 10% down payment). If you have no U.S. credit history, some ITIN-friendly lenders use alternative credit — such as consistent rent payments, utility bills, or remittance records — to build a credit profile. **Immigration status:** You do not need to be a U.S. citizen to buy a home in Colorado. Permanent residents, certain visa holders, and even undocumented buyers using an ITIN can qualify for home loans through specific lenders. Denver has several lenders who specialize in this. **Down payment:** Down payment assistance programs in Colorado can cover 3–5% of the purchase price for qualifying buyers. Some programs are forgivable after a certain number of years in the home. **Debt-to-income ratio (DTI):** Most lenders want your total monthly debts (including the new mortgage) to be no more than 43–45% of your gross monthly income. Some programs allow up to 50% with compensating factors.

§ 03 — What you need

Documents You'll Typically Need

Gathering your documents ahead of time makes the process smoother and helps you avoid delays. Here is what most Denver County lenders will ask for: **For all buyers:** • Government-issued photo ID (passport, driver's license, consular ID/matrícula consular) • Two years of federal tax returns (personal and business if self-employed) • Two most recent W-2s or 1099s • Two to three months of bank statements (all accounts) • Most recent pay stubs (last 30 days) or profit-and-loss statement if self-employed • Proof of any additional income (rental income, child support, etc.) • Landlord contact information or 12 months of canceled rent checks (rental history) **For ITIN buyers:** • ITIN letter issued by the IRS • Two years of ITIN tax returns filed with the IRS • 12–24 months of bank statements (bank statement loan option) • Alternative credit references: utility bills, cell phone bills, insurance payments **For down payment assistance programs:** • Proof of residency in Denver County • Completion certificate from a HUD-approved homebuyer education course • Documentation of household income (all earners in the home) Tip: Many local CDFIs and housing counseling agencies in Denver will help you organize these documents for free before you ever talk to a lender. That pre-work can save weeks.

§ 04 — Where to start in Denver County

Local Lenders, CDFIs, Credit Unions, and ITIN-Friendly Resources in Denver County

This is the most important section of this guide. National banks and big mortgage companies exist, but Denver County has a rich network of local and mission-driven lenders who understand the community. Start here. **Colorado Housing and Finance Authority (CHFA)** CHFA is Colorado's state housing finance agency. It offers below-market interest rate loans, down payment assistance grants, and second mortgage programs for first-time and repeat buyers who meet income and purchase price limits. CHFA loans are delivered through participating local lenders. Visit chfainfo.com to find a CHFA-approved lender near you in Denver. **Consolidated Homesharing & Housing Development Corp. / Thistle Community Housing** A Denver-area affordable housing organization that partners with buyers to navigate CHFA, FHA, and local assistance programs. **Denver Office of Housing Stability (HOST)** Denver's city agency administers local down payment assistance programs, including the Metro Mortgage Assistance Plus program, which offers 4% of the loan amount as a grant for qualifying buyers. Income limits apply. Visit denvergov.org/housing for current program details. **Elevations Credit Union** Based in Boulder and serving the Denver metro, Elevations Credit Union offers conventional, FHA, and VA loans with competitive rates. As a credit union, its structure means member-focused service and often more flexible underwriting conversations. **Westerra Credit Union** A Denver-based credit union serving Colorado residents. Westerra offers home purchase loans, refinancing, and first-time buyer programs, and has a reputation for working with members who have limited credit history. **Canvas Credit Union** Formerly Public Service Credit Union, Canvas serves the greater Denver area and offers mortgage products including FHA loans, conventional loans, and home equity options. Worth calling for a no-pressure conversation. **BOC Capital (Business of Color Capital) / Neighborhood Housing Services of the Rockies (NHS Rockies)** NHS Rockies is a HUD-approved housing counseling agency serving Denver County. They provide free or low-cost pre-purchase counseling, credit coaching, and help navigating down payment assistance. This is an excellent first stop for any buyer who feels uncertain about the process. Contact: nhsrockies.org **Homewise (Denver area)** A New Mexico-founded CDFI that has expanded to Colorado. Homewise offers home purchase loans, down payment help, and bilingual counseling. Known for working with lower-income and immigrant buyers. **Sunflower Bank / FirstBank** Regional Colorado banks with mortgage departments that serve Denver County and are familiar with CHFA programs and local assistance. **ITIN-Friendly Lenders in Denver:** Several lenders in the Denver metro area offer mortgage products to buyers using an ITIN rather than a Social Security Number. These include some community banks and credit unions. Ask specifically: "Do you offer ITIN mortgage loans?" NHS Rockies and CHFA-approved lenders can also point you to vetted ITIN-friendly options. Latino Community Credit Union (based in North Carolina) has explored Colorado partnerships — ask local housing counselors for the most current referrals. **SBA Denver District Office (for mixed-use or investment context)** If you are purchasing a property that includes a business space, the SBA Denver District Office (located at 721 19th St, Denver, CO 80202) administers SBA 504 and 7(a) loans that can apply to owner-occupied commercial real estate. **HUD-Approved Housing Counseling Agencies in Denver County:** HUD certifies free and low-cost housing counselors. Search hud.gov/find-a-housing-counselor for agencies serving 80202–80239 ZIP codes. These counselors help you prepare, understand your options, and avoid mistakes — at no charge.

§ 05 — What to avoid

Colorado State-Specific Rules and Programs You Should Know

Colorado has several state-level rules and programs that directly affect home buyers in Denver County. Understanding these gives you an edge. **Colorado Housing and Finance Authority (CHFA) Programs** CHFA's FirstStep and SmartStep loan programs offer 30-year fixed-rate mortgages at below-market rates, paired with a second loan for down payment and closing cost assistance. Income limits for Denver County are updated annually — check chfainfo.com. As of recent guidelines, household income limits for a 1–2 person household in Denver are approximately $120,000–$140,000 depending on the program. **Metro Mortgage Assistance Plus (MAP+)** Administered by the City and County of Denver through HOST, MAP+ provides a grant equal to 4% of the first mortgage loan amount. It does not need to be repaid. Income must be at or below 80% of Area Median Income (AMI). The AMI for Denver County is updated by HUD annually. **Colorado Opportunity Zone Tax Incentives** Parts of Denver County are designated Opportunity Zones, which offer tax advantages for certain real estate investors. If you are buying a small multi-unit property as an investment, consult a Colorado-licensed CPA or tax advisor about how this may apply. **Property Tax Assessment Notices** Colorado reassesses property values every two years. When you buy a home, expect a reassessment. Denver County property tax rates are relatively low (around 0.5–0.6% of assessed value), but assessed values in Denver have risen sharply. Budget accordingly and check with Denver County Assessor (denvergov.org/assessor) for current estimates. **Colorado's Anti-Deficiency Protections (Limited)** Colorado is not a full non-recourse state. If you default on a purchase-money mortgage, the lender may pursue a deficiency judgment in some cases. Understand your loan terms before signing. **Homestead Exemption** Colorado offers a Homestead Exemption for long-term residents 65 and older or for qualifying disabled veterans. This reduces the taxable assessed value of your primary residence. Apply through the Denver County Assessor's Office. **Colorado Division of Real Estate** All mortgage loan originators working in Colorado must be licensed through the Colorado Division of Real Estate (dora.colorado.gov). You can verify any lender's license there before working with them.

§ 06 — Ask a question

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