No-money down mortgages make a comeback in Colorado

The Credit Union of Colorado is now offering a 100% mortgage package.

Here’s how it works:

The 100% Mortgage Package includes a 97% fixed rate 30-year first mortgage loan and an interest free second mortgage for up to 3% of the total loan to use as your down payment. These two loans work together to equal 100% financing for your first home. Make no payments on the second mortgage until you pay off your mortgage, refinance or sell your home.

Here are some of the benefits:

  • 100% financing for your first home purchase.
  • Your second mortgage can cover up to 3% of the total purchase of the home up to $14,100.
  • Closing costs for the second mortgage are paid by the Credit Union.
  • We will never sell your loan to another mortgage servicer and it is serviced by us.

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To qualify, a borrower must have a credit score at 700 or higher and total debt payments that don’t exceed 43 percent of income. Any property must be in Colorado and owner-occupied. Owners must take an online education course and pass a quiz.

Read the pros and cons of a 100% mortgage loan in the full article by The Denver Post here.