Saving for a down payment can feel like the biggest hurdle to buying a home. If you are looking in Wellington, you actually have more options than you might think, from 0% down loans to state assistance programs. This guide, current as of November 2025, breaks down the choices, the trade-offs, and the steps to take so you can move forward with confidence. Let’s dive in.
How much down payment do you need in Wellington?
Most buyers in Larimer County put somewhere between 0% and 20% down, depending on the loan type and their goals. Some loans allow zero down if you qualify, while others start at 3% or 3.5%. The right amount for you depends on your monthly budget, your credit profile, and how quickly you want to move.
Market prices and days on market change often. Check current local data and get a lender preapproval early so you know your numbers before you shop.
Loan options by down payment
Conventional loans: 3% to 20%+
Conventional loans are widely used and can be very competitive for strong borrowers. Some programs designed for first-time or moderate-income buyers start at 3% down. Many buyers choose 5% to 20% down.
- Mortgage insurance: You will pay Private Mortgage Insurance (PMI) if you put less than 20% down. PMI can usually be canceled once you reach 20% equity, and it must be removed at 78% loan-to-value by law. Typical PMI costs vary based on credit and down payment.
- Pros: Competitive rates and the ability to remove PMI. Flexible on property types that meet approval standards.
- Cons: Credit and income standards can be tighter than government loans. PMI adds a monthly cost with smaller down payments.
FHA loans: 3.5% minimum
FHA can be a strong option if you want flexible credit guidelines.
- Down payment: 3.5% with credit scores of 580 and above. Borrowers with scores between 500 and 579 usually need 10% down.
- Mortgage insurance: Includes an upfront mortgage insurance premium and an annual premium. For most loans with less than 10% down, annual MIP remains for the life of the loan unless you refinance. With 10% or more down, MIP typically lasts 11 years.
- Pros: More forgiving underwriting for credit and some debt scenarios.
- Cons: MIP increases the monthly payment. Property condition standards can be stricter at appraisal.
VA loans: 0% down for eligible buyers
If you are a veteran, active-duty service member, or certain surviving spouse, VA offers powerful benefits.
- Down payment: 0% for most eligible borrowers.
- Fees and insurance: A one-time VA funding fee may apply, which can be financed. There is no PMI.
- Pros: Zero down and competitive rates. No PMI keeps the monthly payment lower.
- Cons: You must meet VA eligibility. Some listings may require extra appraisal clarity.
USDA Rural Development: 0% down in eligible areas
Parts of Wellington and rural Larimer County may qualify for USDA financing, but eligibility is property specific.
- Down payment: 0% for eligible properties.
- Mortgage insurance: Includes an upfront guarantee fee and an annual fee.
- Pros: 100% financing for qualifying buyers in eligible rural areas, subject to income limits.
- Cons: Income caps apply, and not every address is eligible. Always check eligibility for the specific property.
Colorado and Larimer County assistance
CHFA down payment assistance
The Colorado Housing and Finance Authority (CHFA) is the primary statewide source of down payment help.
- What it offers: DPA paired with CHFA-backed first mortgages. Assistance may come as a second mortgage that is deferred or forgivable over time, or as a grant. Offerings change, so confirm details.
- Basic requirements: Income and purchase-price limits that vary by county. Owner-occupancy is typical, and a homebuyer education course is often required. You will work with a participating lender.
- Why it helps: Lowers your upfront cash need and can pair with conventional, FHA, or other CHFA-supported loans.
Larimer County and local resources
Larimer County and local partners sometimes offer housing assistance, counseling, or program referrals. Availability changes, so check county housing and community services pages for current options. Some municipal or workforce programs can pair with CHFA.
Employer and community programs
Large employers may offer homebuyer grants or forgivable loans. Ask your HR team if your benefits include homeownership assistance. These funds often stack with other programs.
HUD-approved housing counselors
Certified counselors can help you compare options, budget, and complete DPA steps. They also help you avoid scams and missed deadlines. Counseling is usually free or low cost.
How to compare options
When you line up loans and assistance, focus on four things:
- Cash to close: Down payment, closing costs, and any prepaid items.
- Monthly payment: Principal and interest, mortgage insurance, taxes, and insurance. Smaller down payments can mean higher PMI or MIP.
- Long-term flexibility: With conventional loans, PMI can usually be removed. FHA MIP often lasts longer unless you refinance.
- Eligibility and timing: USDA has property and income limits. CHFA and other DPA programs have income caps, education requirements, and application steps that must be completed before closing.
Documentation and common rules
Getting your paperwork ready early keeps your purchase on track.
- Income: Recent pay stubs, W-2s, and possibly tax returns. Self-employed buyers should expect extra documentation.
- Assets: Bank statements showing where the down payment and closing funds come from.
- Gift funds: Many loans accept gift funds from family with a signed gift letter and proof of transfer. Some programs limit borrowed funds.
- Education: DPA programs often require a homebuyer education certificate from an approved provider.
- Lender approvals: You may need to work with a participating lender for CHFA or USDA. Confirm this before you write offers.
- Timing: Some assistance requires approval before you go under contract. Missing a step can delay or disqualify your aid.
Smart strategies to build or supplement your down payment
You can combine several tactics to get across the finish line.
- Use eligible zero-down options: VA or USDA could reduce upfront cash to almost zero if you qualify.
- Pair low-down loans with DPA: CHFA often bridges the gap for upfront costs.
- Leverage allowed gift funds: Family help is common. Follow your lender’s documentation rules.
- Ask for seller concessions: You usually cannot use them for the down payment itself, but they can cover closing costs up to program limits.
- Mind your reserves: A smaller down payment might keep more cash on hand for emergencies and improvements.
- Consider equity solutions if you are moving up: Bridge financing or a HELOC may be options if you own a home, but they carry risk and require lender approval.
What this looks like in Wellington
Wellington straddles a unique spot near Fort Collins with a mix of in-town neighborhoods and rural-feeling pockets. That makes USDA worth checking on a property-by-property basis. At the same time, CHFA remains a go-to path for first-time and income-qualified buyers across Larimer County.
Because market speed and pricing change, get preapproved with a lender who works often with CHFA, USDA, FHA, and VA. Have your income and asset documentation ready, and complete any required homebuyer education early. This puts you in position to write a clean, confident offer when the right home hits the market.
Next steps for Wellington buyers
- Define your budget: Choose a target monthly payment and cash-to-close range that fit your comfort level.
- Get preapproved: Talk with lenders who are experienced with CHFA, USDA, FHA, and VA in Larimer County.
- Check USDA property eligibility early: Since eligibility is address specific, verify the property before you write.
- Ask about CHFA: Review income and purchase-price limits and learn what assistance structure fits you.
- Complete education: If required, finish homebuyer education before you shop to avoid delays.
- Gather documents: Have income, asset, and gift documentation ready to speed up underwriting.
If you want a local partner to help you align the right financing with the right home, reach out to Venna Hillman. You will get clear guidance, neighborhood insight, and a smooth path from preapproval to keys.
FAQs
How much down do I need to buy in Wellington?
- It depends on your loan and profile. Options range from 0% down with VA or USDA-eligible properties to 3% conventional or 3.5% FHA. Many buyers choose 5% to 20% based on budget and goals.
Are Wellington homes eligible for USDA 0% down financing?
- Some are. USDA eligibility is property specific and depends on the address. You must also meet income and program rules. Verify the property and discuss with a USDA-experienced lender.
What Colorado programs can help with my down payment?
- CHFA is the primary statewide source, offering assistance paired with its mortgages. Larimer County and local partners may list additional resources. HUD-approved counselors can help you find current options.
Can I use gift funds from family for my down payment?
- Yes, most loan programs allow gift funds with a signed gift letter and proof of transfer. Some assistance programs limit borrowed funds, and seller concessions usually go toward closing costs, not the down payment.
Will a smaller down payment raise my interest rate?
- Often, yes. Lower down payments can increase lender risk, which can raise your rate and add PMI or MIP. Your credit score and debt-to-income ratio also play a big role in pricing.
How can I avoid mortgage insurance?
- Put at least 20% down on a conventional loan, use a VA loan if you are eligible, or plan to refinance into a conventional loan once your equity reaches about 20%.
What credit score and DTI do lenders typically expect?
- Conventional loans often favor scores in the mid-600s or higher, with some programs starting around 620. FHA will consider scores from 580 for 3.5% down. DTI around 43% is common, but automated underwriting and lender overlays can vary. Always check with a lender.
