COLORADO SPRINGS, Colo. (KOAA) — Home ownership can feel out of reach for many people, but a mortgage loan expert in Colorado Springs says there are programs available where you might be able to buy a house with just a few thousand dollars out of pocket.
News5 met with Tim Chase, a local mortgage loan expert, to learn what options first-time homebuyers have for down payments.
"I think that buying a house is achievable for just about everybody," Chase said. "In fact I like to say that everybody can buy a house, just not everybody can buy a house today. However, if you find out where you're at, you can make a plan... and you can execute on that plan."
We've reported on a new analysis from Realtor.com that shows it takes prospective buyers an average of seven years to accumulate enough money for a typical down payment. But there are other options outside of saving up for nearly a decade.
"We have people that come in with as little as say $1,000 out of pocket, $2,000 out of pocket, and they're able to buy a house," Chase explained.
Chase says there are three main ways to get down payment assistance.
1. A loan
2. A grant
3. A silent second
Chase adds that finding the right lender and REALTOR is crucial if you want to become a homeowner and you don't know where to start.
Receiving a loan for down payment assistance is pretty self-explanatory. However, when it comes to grants, many people may not realize how many options are out there that they may qualify for. Meeting with a lender can be a big help, but if you want to do some of your own research, there are resources from the Colorado Department of Local Affairs you can view by clicking here.
"The silent seconds are interesting because they give you the money, but you never make a payment on it," Chase said. "It could be forgiven in the future, but usually what happens is you never repay it unless you sell or refinance the house."
Of course, you have to be ready for home ownership. That means having a good credit score and figuring out your debt-to-income ratio. The U.S. Department of Housing and Urban Development offers a step-by-step guide when it comes to figuring out if home ownership is right for you. Click here for that guide.
Chase is a firm believer that just about everyone can work towards home ownership without having to spend years saving.
"Don't let social marketing dictate what you do. Let math do it for you. Math doesn't lie," Chase said.
"This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy."
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