Trinidad Colorado Mortgage Programs

Program#1 USDA Home Loans

A USDA loan is a zero down payment mortgage program intended for residential properties in rural areas of the United States. The purpose of the program is to encourage home ownership in rural areas with lower populations.

The City of Trinidad, Colorado is eligible for USDA financing! Example of a Trinidad eligible property below. 

Trinidad CO USDA Property example

What are the benefits of a USDA loan?

• 100% No Money Down Home Loans. No need for down payment assistance or other grant programs.

• Very Competitive Interest Rates. More competitive than conventional loans.

• Backed and Secured by the Federal Government.

• Low Monthly Mortgage Insurance Compared to FHA or other Conventional Loans.

• Purchase and Refinance. Buy a new home or refinance your current home.

• Fixed secured loans – 30 year or 15 year fixed rate loans.

• Not required to be first time home buyer / Can currently own a home but must occupy new home as primary residence. 

How to Qualify for a USDA Loan?

• Income limits are based on County. Trinidad is located in Las Animas County so household income needs to stay below these limits.

$86,250 Maximum Yearly Income for 1-4 person household

$113,850 Maximum Yearly Income for 5+ person household

• Credit Score must be 620+. No exceptions to this rule. We use the middle score of all borrowers applying for the mortgage. If you are unsure of what your credit score is, please reach out to us and we can access your credit report together.

• Not required to be first time home buyer.

• Must occupy the home as your primary residence. Cannot be used for investment property.

• Minimum Loan Amount $50,000 / No maximum Loan Amount – This means you can purchase any home above $50,000 as long as your income allows it.

• Limited to eligible rural properties only. Trinidad is considered a rural area so all residential properties qualify. 

Helpful Links

Learn More about USDA

USDA Income Eligibility Calculator

USDA Property Eligibilty Map

Colorado USDA Website

USDA Fact Sheet

Program#2 FHA Home Loans

• 3.5% Down Payment Required on purchases. Cash out refinances up to 85% of the home’s value. 

• Very Competitive Interest Rates. Similar to USDA. More competitive than conventional loans.

• Minimum Credit Score of 580+ with 3.5% down payment or 520 Credit Score with 10% down payment. We use the middle score of all borrowers applying for the mortgage. If you are unsure of what your credit score is, please reach out to us and we can access your credit report together.

• Backed and Secured by the Federal Government.

• Higher Mortgage insurance than USDA but still competitive compared to conventional loans.

• Purchase and Refinance. Buy a new home or refinance your current home. Cash out Refinances to 85% of home’s appraised value

• Fixed secured loans – 30 year or 15 year fixed rate loans. ARM’s also available.

Primary residence only. Not required to be first time home buyer / Can currently own a home but must occupy new home as primary residence. 

No Income restrictions. Unlike USDA loan, FHA doesn’t have maximum income limits 

Not limited to certain properties like USDA.

Mortgage loan limits apply. Look below.

Las Animas / Trinidad FHA 2018 Loan Limits
1 Unit 2 Unit 3 Unit 4 Unit
$294,515 $377,075 $455,800 $566,425

Program#3 Conventional Home Loans

• 3 Down Payment Required on purchases / 3% equity on refinances / 85% on cash out refinances

• Interest rates tend to be higher than USDA or FHA but depends on credit score and down payment.

• Minimum Credit Score of 620+. We use the middle score of all borrowers applying for the mortgage. If you are unsure of what your credit score is, please reach out to us and we can access your credit report together.

• Backed and Secured by Fannie Mae and Freddie Mac.

On a purchase, ability to avoid mortgage insurance with 20% down payment. No Mortgage insurance on refinances with 20% equity.

• Fixed secured loans – 30 year or 15 year fixed rate loans. ARM’s also available.

Primary residence only. Not required to be first time home buyer / Can currently own a home but must occupy new home as primary residence. 

No Income restrictions. Unlike USDA loan, conventional loans doesn’t have maximum income limits 

Limited loan amounts based on County. Trinidad is located in Las Animas County so loan limits need to be below these amounts:

Las Animas / Trinidad Conventional Conforming 2019 Loan Limits
1 Unit 2 Unit 3 Unit 4 Unit
$484,350 $620,200 $749,650 $931,600

Program#4 Down Payment Assistance Program

• CHFA Loan for people who need down payment assistance. Similar guidelines as FHA but allows purchase with $1,000 down payment. 

• Interest Rates are NOT competitive compared to FHA, USDA or Conventional Loans.  More competitive than conventional loans.

• Minimum Credit Score of 620+

• Purchase and Refinance. Buy a new home or refinance your current home. Cash out Refinances to 85% of home’s appraised value

• Fixed secured loans – 30 year or 15 year fixed rate loans. ARM’s also available.

Primary residence only. Not required to be first time home buyer / Can currently own a home but must occupy new home as primary residence. 

Income restrictions do apply. Visit CHFA website for more details. 

Not limited to certain properties like USDA.

USDA vs FHA vs Conventional (Which is better)

  1. FHA requires 3.5% down payment / Conventional requires 3% down payment/ USDA does not require a down payment(100% financing)
  2. Although FHA and USDA rates are very similar, USDA has much lower monthly and upfront mortgage insurance. That means your monthly payment will be lower and you will pay a smaller upfront government fee. On a $200,000 home purchase, your USDA payment would be about $50 less. You would also save about $1500 in upfront mortgage insurance fees which will lower your closing costs.
  3. USDA loans do not have any maximum loan amounts. FHA and conventional loan amounts are limited based on individual counties.
  4. FHA and conventional loans do not have limitations on location but USDA is limited to certain rural eligible areas only.
  5. USDA loans are more difficult to qualify for compared to FHA regarding income and credit. For example, we can do an FHA loan with a 580+ credit score but USDA and conventional loans requires 620+.
  6. USDA mortgages do have household income restrictions. FHA and conventional loans do not have income limits.
  7. Conventional loans might offer better terms than FHA and USDA if buyer/homeowner has a high credit score and large down payment. EX: 720 credit score and 20% down.

So when comparing different mortgage loans, Trinidad CO home buyers have various options depending on their financial situation. In many cases, USDA will be the best loan option due to the 100% financing and competitive interest rates. With USDA, applicants will need to stay under the maximum income limits so FHA and conventional loans may work better for applicants in a higher income bracket. Contact us with questions or concerns regarding these loan options. 

Trust Home Loans