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Denise Hogue's profile image
  • from Claymont, Delaware
  • Member since Mar 10, 2015

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Denise Hogue's profile image
  • from Claymont, Delaware
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Denise Hogue
  • Claymont, DE
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First time homebuyer in Denver area looking to buy a residential income property

Denise Hogue
  • Claymont, DE
Posted Sep 9 2023, 09:53

Hi all... 

My daughter's are interested in buying their first multi family property in the Denver area.  They will be living in the property and are looking for programs that would help with down payment/closing costs.

Any information would be greatly appreciated.


Thank you.

Kayla Givens's profile image
  • Real Estate Broker
  • from Denver, CO
  • Member since Jan 21, 2021

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Kayla Givens's profile image
  • Real Estate Broker
  • from Denver, CO
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Kayla Givens
  • Real Estate Broker
  • Denver, CO
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Kayla Givens
  • Real Estate Broker
  • Denver, CO
Replied Sep 9 2023, 11:42

Hey, @Denise Hogue! How exciting that your daughters are getting started with real estate investing! Depending on their specific situation, I would recommend looking into an FHA loan to reduce down payment. For closing costs it's a lot easier to negotiate these days so definitely some options to get seller concession to cover closing costs and/or rate buy down.

I'll shoot ya a DM to chat more!

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Ben Rhodin's profile image
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  • from Denver, CO
  • Member since Feb 10, 2020

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Ben Rhodin's profile image
  • Realtor
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Ben Rhodin
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Ben Rhodin
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  • Denver, CO
Replied Sep 11 2023, 11:58

Hi @Denise Hogue! Super exciting that your daughters are approaching the great big world of real estate, and they are lucky to have supportive parents like yourself!

The Denver area is a great space for them to get started, and essentially what they will be doing is House Hacking. Kayla already nailed the best loan product for them, which is the FHA loan, unless they happen to be veterans and have access to the VA loan. As for other programs, Seller concessions are the most straightforward option, however, Colorado does have numerous grants and programs for first-time buyers for downpayment assistance. Happy to connect you to a lender to see if these would be viable for them.

One thing to note when pursuing 3 and 4-unit properties as an owner-occupant, is the self-sufficiency test for an FHA loan. In short 75% of the total rents need to completely cover your PITI otherwise the loan won't go through. This essentially kills any house hack for a 3-4 unit, especially with today's rates. This does not come into play with a duplex, however, so if they want to stick in that space they are able to.

There are also numerous ways that you as their parent could get involved and take advantage of the real estate investment as well. Happy to chat more if you want to shoot me a DM!

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James Carlson#3 Short-Term & Vacation Rental Discussions Contributor
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  • Colorado Springs CO | Denver, CO
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James Carlson#3 Short-Term & Vacation Rental Discussions Contributor
  • Real Estate Agent
  • Colorado Springs CO | Denver, CO
Replied Sep 11 2023, 14:11

@Denise Hogue They must be excited for that. That's really exciting. Denver's an awesome city to live in, especially when you're young, and a great place to get in early with real estate. 

In addition to what others have said -- yes, FHA is great -- there are also a few down payment assistance programs out there depending on the lender you work with. (I'm not super familiar with them, but one of my favorite lender has them in her roster.)

Good luck to your daughters!

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Grant Schroeder
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Grant Schroeder
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Grant Schroeder
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Replied Sep 12 2023, 15:41

HI @Denise Hogue! They can do a 0% Down Conventional or FHA loan with downpayment assistance with you as a non occupying coborrowes for their first investmnet! Glad to hop on a call to talk through this more with you!

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Denise Hogue's profile image
  • from Claymont, Delaware
  • Member since Mar 10, 2015

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Denise Hogue's profile image
  • from Claymont, Delaware
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Denise Hogue
  • Claymont, DE
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Denise Hogue
  • Claymont, DE
Replied Sep 13 2023, 06:01

Thank you all so much for the information!!  I'm going to pass this onto them.


  

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Dan Sheeks
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Dan Sheeks
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Dan Sheeks
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Dan Sheeks
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Replied Sep 13 2023, 15:36

Have you given your daughters the BiggerPockets book First to a Million (and the workbook)? It’s written for young aspiring investors just like them!

Denise Hogue's profile image
  • from Claymont, Delaware
  • Member since Mar 10, 2015

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Denise Hogue's profile image
  • from Claymont, Delaware
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Denise Hogue
  • Claymont, DE
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Denise Hogue
  • Claymont, DE
Replied Sep 26 2023, 06:12

Thank you Dan.... I haven't given them that, but will now!!

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Dave Skow
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Replied Sep 27 2023, 17:38

@Denise Hogue- thanks ...depending on the down payment she will have a FHA program is the best option if wanting to minimize the down payment ...if the down payment can be 25% of the price - then conventional loans are a great option . Have them begin the pre approval process as this will help them get organized and educated on options