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Alpine Bank Mortgage

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Conforming loan programs help first-time homebuyers & those with limited income & assets

I recently had a conversation with a gentleman who was looking to purchase his first home. He had begun his home shopping process buzzing with excitement as he thought about the great new home he would purchase. 

As he began looking at homes, his excitement quickly turned to angst as he realized that both his salary and his bank balances would make home shopping difficult. At one point in the conversation, he stopped and asked me directly, “How does anyone afford to purchase a home these days?” 

This is a question mortgage lenders get regularly. After all, home prices have remained high and interest rates have risen. I accurately surmised that he hadn’t yet been presented with all of his mortgage loan options

Fortunately, there are a number of programs out there that are specifically designed for a borrower with limited income, limited assets or both. 

For the purposes of this article, I’m going to focus on two conforming programs offered by Freddie Mac: Home Possible and Home One. Both programs in the table below are close cousins to the traditional conforming loans we’ve all come to know and love; the difference is simply that these are designed for borrowers who may have difficulty affording a home using the traditional programs.

Home Possible Home One
97% Loan-to-Value (only a 3% down payment required) 97% Loan-to-Value (only a 3% down payment required)
Income must be 80% of area median income, or less No income restrictions
Borrower may own one additional property, maximum Owner must be a first-time homebuyer or at least three years must have passed since the last property was owned 
Discounted interest rate pricing Standard interest rate pricing
Discounted mortgage insurance pricing  Standard mortgage insurance pricing
Down payment may come from gift funds Down payment may come from gift funds
At least one borrower must complete online homebuyer counseling education course At least one borrower must complete online homebuyer counseling education course


This analysis represents just the “tip of the iceberg” for mortgage loan options that help both first-time home buyers and those with limited income and/or assets. Your knowledgeable local Alpine Bank mortgage lender–from the Eagle to Pitkin to Mesa Counties–is available to discuss these mortgage possibilities and others that may be a fit for your situation, so I encourage you to reach out to one of our team members today.


About This Author


Alpine Bank Staff

Alpine Bank is an independent, employee-owned organization with headquarters in Glenwood Springs and banking offices across Colorado’s Western Slope, mountains and Front Range.

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