Frequently Asked Questions (FAQs)

Find the Answers to All of Your Mortgage Questions


Getting a home loan can be challenging, which is why we aim to be a reliable source of up-to-date information and helpful resources.

You'll find answers to some of the most popular questions from our customers below. Feel free to get in touch with us if you have any other questions that aren't answered here.

Does Colorado have a first-time homebuyer program? Click to open answer

FHA, VA, USDA (Rural), and Conventional are just some of the first-time homebuyer programs that are offered in the state of Colorado. There are also programs that can provide assistance with the down payment, such as CHFA and metroDPA

Can I buy a home without a large down payment? Click to open answer

Yes. We offer a wide selection of loan products, including options with low down payments and no down payment.*

*Closing costs and fees may still apply.

Can I get a loan if my credit isn’t great? Click to open answer

Very likely. Qualification depends on a number of factors, but we offer loans with lenient credit requirements. For example, you may be able to qualify for an FHA loan with a credit score as low as 500.

What are popular loan options? Click to open answer

We offer hundreds of loan programs so we can meet the unique needs of each customer. Common options include:

  • Conventional loans
  • FHA loans
  • VA loans
  • USDA loans
  • Jumbo loans
  • Renovation loans

What is the difference between pre-approved and pre-qualified? Click to open answer

Prequalification means a lender has given you an estimate of how much you may qualify to borrow. Pre-approval is more official and means the lender has collected more info and sent it through underwriting.

What’s the difference between an adjustable-rate mortgage (ARM) and a fixed-rate mortgage? Click to open answer

An adjustable-rate mortgage comes with an interest rate that can change throughout the loan term. If you choose a fixed-rate mortgage, the interest remains the same throughout the entire duration of the loan.

What is APR? Click to open answer

APR is short for Annual Percentage Rate. APR represents the cost of a loan over a year. It includes the interest rate as well as other costs and fees that come with your loan.

What is DTI? Click to open answer

DTI stands for debt-to-income ratio. It is the percentage of your gross monthly income that goes toward monthly debt payments and obligations. It factors in things like rent or mortgage payments, auto loans, credit card payments and alimony/child support payments. A smaller debt-to-income ratio improves your chances of qualifying with an advantageous rate.

What is PMI? Click to open answer

PMI stands for private mortgage insurance. Mortgage insurance protects your lender’s investment if you default on your loan. It is normally required if your down payment is less than 20%.

What is included in my monthly payment? Click to open answer

In most cases your monthly payment will include loan principal and interest. If your loan has private mortgage insurance, it will also be included.

What are the closing costs? Click to open answer

Closing costs will vary depending on your situation, but they often include origination fees, appraisal fees, title insurance fees and more. You will receive an estimate of closing costs in advance so you know what to expect.

Down Payment Assistance FAQs

Can you buy a house in Colorado without a down payment? Click to open answer

There are programs, such as CHFA and metroDPA, that are available to homebuyers in Colorado that will help assist you with making your down payment; however, closing costs and fees will typically still apply in most cases.  

Homebuyers in Colorado, for instance, can take advantage of CHFA's down payment assistance program, which makes it possible for them to put as little as $1,000 down on a house.

*First lien interest rates may be higher when using a DPA second. 

What is down payment assistance? Click to open answer

Homebuyers who are having trouble saving up for a down payment may be eligible for down payment assistance, which can come in the form of a number of different programs and funding options. Grants or second mortgages are common types of funding provided by government and public agency programs.

*First lien interest rates may be higher when using a DPA second. 

What is a down payment assistance grant? Click to open answer

You are not required to make any payments toward a grant; however, you are responsible for being aware of any requirements that are associated with the grant, such as the maximum allowable income. 

*First lien interest rates may be higher when using a DPA second. 

What is a down payment assistance second mortgage? Click to open answer

When you take out a second mortgage or loan, you are essentially adding another lien to your mortgage. There is typically no monthly payment required, and no interest is charged. When a home is sold, refinanced, or the owner has lived there for 30 years, it is common for the second mortgage or loan to come due. 

If you have a forgivable second loan or mortgage, your obligation to pay it goes away once the terms of forgiveness are met (such as living in the home for a certain period of time). 

*First lien interest rates may be higher when using a DPA second.