Metropolitan University of Denver’s Wednesday welcome-back-to-campus fair featured food trucks, recruiting student clubs and a visit from the feds.

The U.S. Department of Housing and Urban Development’s (HUD) Rocky Mountain Regional Office’s booth stood among rows of college-related resources, beckoning students and staff preparing for their first week back classes to learn about homeownership possibilities and debunk myths around the home buying process, said Dominique Jackson, HUD Rocky Mountain’s regional administrator.

Department representatives were there to help students and faculty see that homeownership is more accessible than they might imagine.

These HUD events, titled “House Parties,” aimed at young adults and communities of color are happening across the country, but Jackson noted their education efforts are critical in Colorado when examining Denver and the surrounding area’s housing market.

HUD housing counselors met with passing students on the most diverse four-year institution of higher education in Colorado, teaching them about federal housing resources including Federal Housing Administration (FHA) loans. An FHA loan is a mortgage insured by the federal government and issued by a bank or lender approved by HUD. The loans often require a lower down payment than conventional loans and sometimes allow for the buyer to have a lower credit score.

However, HUD data found the FHA single-family home market in Denver is declining, with fewer homes being approved and a higher median sales price. In 2022, FHA approved 24,014 homes in Colorado and 14,073 in the Denver metro, a decrease of 33% and 36%, respectively, from 2021, according to the data.

The median price of an FHA-insured property in Denver has risen from $383,668 to $505,807 in the past five years. The average monthly income of FHA homebuyers in Colorado was $9,096 and the average interest rate was 6.04%. In Denver, the average income was $10,109 with a 5.98% average interest rate.

“I think a lot of young people feel disheartened and discouraged,” said Denver Housing Authority’s Charlotte O’Donnell, who manned the DHA booth next to HUDs at the college fair.

She tells young people who want to set themselves up for homebuying success that they need stable employment with stable income that’s going to increase over time, a credit score of at least around 660 and to build savings.

Homeownership may seem like a daunting undertaking, especially for younger buyers. However, there are multitude of resources first-time buyers can take advantage of to make this dream a reality. Give Metrowest a shout today and let’s discuss your options!