11/11/2025
Here are 5 ways you can make your home purchase more affordable either on your cash to close or your monthly payment.
1.) 2-1 buydown. This is a seller subsidy on the rate of your loan that buys down your rate by 2% in year one and 1% in year two. It gets you two years of a more affordable payment however you need to qualify for the payment you would have in year 3 and you should prepare for that payment in year 3 by not expecting rates to go down. It’s a temporary relief on your monthly payment.
2.) Gift funds- Lenders allow “gift funds” from family as long as that family member signs an affidavit saying they don’t expect you to pay them back. This is common with today’s first time home buyers.
3.) Negotiate the Price Down- Surprise! Home prices are negotiable, you can negotiate down the price.
4.) Add a co-signer on the Mortgage- This is also very common for today’s first time home buyers, adding a family or friend as a co-signer. The co-signer has to qualify for that mortgage payment with their debt-to-income ratio and their credit. It’s an added payment responsibility for the co-signer if they wish to buy another home or car, this payment counts on their DTI ratio.
5.) There are down payment assistance programs that help first time home buyers get into home ownership. The most common one here in CO is CHFA. The mortgage rate might be higher but you can get into homeownership with less money down.