Table of Contents
- What Are Alternative Mortgage Options?
- Bank Statement Loans
- VA Loans for Veterans
- Seller Financing (Owner Carry)
- Lease-to-Own Agreements
- Down Payment Assistance Programs
- Portfolio Loans from Alternative Lenders
- Co-Buying with Friends or Family
- Adjustable-Rate Mortgages (ARMs)
- FHA 203(k) Renovation Loans
- Community Land Trusts & Shared Equity Programs
- How the Dempsey Group Can Help
- Final Thoughts
- FAQs
What Are Alternative Mortgage Options?
Let’s be honest: buying a house in Colorado isn’t as straightforward as it used to be. If you’re shopping in Arvada or anywhere around Denver, you’ve probably noticed that the usual mortgage process doesn’t work for everyone. Maybe you’re self-employed. Maybe you don’t have a traditional credit profile. Or maybe you’re just looking for a different way to make homeownership happen.
That’s where alternative mortgage options come in.
These aren't shortcuts. They’re real solutions for real people who might not fit inside the typical mortgage box. Let’s walk through some of the options that could help you get the keys to your next new home.
1. Bank Statement Loans
If you run your own business or have income that doesn’t show up neatly on a W-2, this loan could be a good fit. Instead of pay stubs, lenders look at 12–24 months of your bank deposits to understand your actual cash flow.
Who this helps: Entrepreneurs, freelancers, independent contractors
2. VA Loans for Veterans
If you’ve served in the military, you’ve earned access to one of the most helpful loan programs out there. VA loans don’t require a down payment or mortgage insurance, which can make a big difference.
Who this helps: Veterans, active-duty service members, some surviving spouses
3. Seller Financing (Owner Carry)
In this setup, the seller becomes the lender. Instead of borrowing from a bank, you agree on terms with the seller directly. It's not super common, but it does pop up—especially with older properties or unique homes.
Who this helps: Buyers with credit challenges or non-traditional income
4. Lease-to-Own Agreements
Rent now, buy later. A portion of your monthly rent can go toward the purchase of the home when you're ready to buy. This gives you time to build savings, improve credit, or secure long-term employment.
Who this helps: Buyers needing more time or flexibility
5. Down Payment Assistance Programs
These programs help cover part (or sometimes all) of your down payment. They’re offered by state and local agencies, including CHFA and MetroDPA. If you qualify, it can make homeownership much more accessible.
Who this helps: First-time buyers, moderate-income households
6. Portfolio Loans from Alternative Lenders
Some lenders keep loans in-house instead of selling them, which means they can be more flexible with approvals. These are often a good option for people who don’t check every box on a standard application but still have strong financials.
Who this helps: Buyers with high assets but irregular income, real estate investors
7. Co-Buying with Friends or Family
Buying a home with someone you trust—whether it’s a sibling, friend, or parent—can make it easier to get in the door financially. Just make sure you have a written agreement that outlines everyone's responsibilities.
Who this helps: Buyers priced out of solo homeownership
8. Adjustable-Rate Mortgages (ARMs)
ARMs start with a lower interest rate for a set period (like 5 or 7 years), then adjust based on the market. If you plan to move or refinance within a few years, this could be a useful way to save on interest.
Who this helps: Buyers with short-term plans or income that’s expected to increase
9. FHA 203(k) Renovation Loans
These loans let you finance the cost of the home and renovations in one mortgage. Great for buyers who are open to properties that need a little work.
Who this helps: Buyers looking for affordable homes that need updating
10. Community Land Trusts & Shared Equity Programs
Some local organizations in Colorado offer shared equity programs that reduce your upfront costs. You still own the home, but you share a portion of the home’s future appreciation with the program partner.
Who this helps: Buyers in high-cost areas who need lower entry costs
How Lauryn Dempsey Can Help
I work with buyers across all kinds of financial situations—first-time buyers, self-employed professionals, military families, and those using creative strategies to make a move in today’s market. I also work with lenders who understand these alternative options and won’t treat you like a square peg in a round hole.
You don’t need to figure this out alone. My job is to break it down and help you move forward with a plan that works.
Final Thoughts
You don’t have to follow the typical path to buy a house. If the traditional mortgage route feels like a deadline and end, there are other ways—and they’re not as complicated as they sound when you’ve got the right team behind you.
If you're thinking about buying a home in Arvada, Denver, or anywhere in Colorado and want to talk through your options, I'm here for that. No pressure, just a conversation.
FAQs
Q: Can I qualify for a mortgage if I’m self-employed?
A: Yes. A bank statement loan is often a good choice. Instead of W-2s or tax returns, lenders use 12–24 months of your bank statements to verify income. This works well for freelancers, business owners, and independent contractors who may not have traditional income documentation.
Q: Are seller-financed homes risky?
A: They don’t have to be. The key is making sure the terms are clear and legally documented. Working with a trusted Realtor and a real estate attorney ensures that both buyer and seller are protected in the agreement.
Q: What’s the best loan for veterans?
A: VA loans are one of the strongest options available. They require no down payment, don’t charge mortgage insurance, and often come with better rates. If you’re eligible, it’s definitely worth exploring.
Q: Do I have to be a first-time buyer to get assistance?
A: Not always. Many programs consider you a “first-time buyer” if you haven’t owned a home in the last three years. Colorado has several down payment assistance programs that help both first-time and returning buyers depending on income and location.
Q: Can I get help even with low credit?
A: Yes. FHA loans and some alternative lenders work with lower credit scores. You may need to bring a larger down payment or provide extra documentation, but it’s possible to buy a home with less-than-perfect credit.
Q: Is co-buying a home with a friend or family member a good idea?
A: It can be—if everyone is on the same page. Co-buying can make homes more affordable, but it's important to create a clear written agreement that outlines ownership, payments, and what happens if someone wants to sell.
Q: What’s the difference between an ARM and a fixed-rate loan?
A: An ARM (Adjustable-Rate Mortgage) starts with a lower interest rate for a set time, then adjusts based on market conditions. A fixed-rate loan stays the same over the life of the loan. ARMs may be a good fit if you plan to move or refinance before the rate adjusts.
If you are looking for daily insight and tips on today’s market, follow Lauryn Dempsey on LinkedIn. If Lauryn can help you strategize your next steps in real estate in the Denver Metro Area or elsewhere across the U.S., please book a call!