PROGRAM AVAILABLE AT THE STATE LEVEL

COLORADO HOUSING ASSISTANCE CORPORATION, CHAC

CHAC provides low interest, flexible loans to low and moderate income (80% AMI in most areas, 100% AMI in Arvada when using the Arvada program) first time home buyers for down payment and closing cost assistance throughout Colorado. The loan is recorded as a second mortgage (lien) on the property being purchased. All of the loans require repayment, usually with monthly payments, although the start date of those payments may vary. All borrowers are required to have a minimum contribution of $1,000 (minimum contribution for the disability program is $750.00) to the transaction that cannot be a gift. Exceptions may apply.

Applications for CHAC assistance will be submitted by your first mortgage lender. We will communicate primarily through that person, but are available to answer any questions about the CHAC loan you may have.

Once CHAC has reviewed the initial application from your lender, there will be several documents and disclosures for you to sign and return to us. These will include a description of the CHAC loan—the amount, terms, and fees. You will also be asked to certify other information such as:

YOU

1. Have not had a ownership interest in a principal resident for three (3) years prior to the loan closing date
2. Intend to occupy this property as your primary residence
3. Do not own other residential property
4. Have given full disclosure of income and assets for all persons intending to occupy the home
5. Have provided proof of legal residency for all members of the household-if requested

YOU agree and understand

• An additional borrower counseling session with CHAC is required prior to closing
• You must provide at least $1,000 ($750 for disability program) to the purchase transaction
• You may NOT get any money back at closing
• This loan will be a mortgage on your home
• This loan will be serviced by Colorado Housing Assistance Corporation (CHAC)
• You may prepay the CHAC loan at any time without penalty
• Payments are due on the 1st of each month, late on the 16th. IF late, a $5.00 late fee may be added
• If you are not living in the home, the FULL amount of the outstanding loan plus interest will be due and payable immediately.
• If the first mortgage is paid off or otherwise released, (including a refinance), the CHAC loan will be due in full.

PROGRAMS AVAILABLE PER COUNTIES/CITIES

ARAPAHOE COUNTY

Arapahoe County’s First-Time Homebuyer Assistance Program could help put you on the path to home ownership. Arapahoe County has teamed with Funding Partners to assist low and moderate income families and individuals with their first-time purchase of a home in Arapahoe County (excluding the City of Aurora, which has its own program).

If you qualify for assistance, we can help you pay for the down payment, closing costs and prepaid/escrows for 6 percent of the purchase price up to $10,000. This comes is in the form of a second mortgage loan with a low, fixed 3.0 percent interest rate (payments vary depending on the loan amount). The loan repayment schedule will begin immediately and will be amortized for a period not to exceed 15 years.

The purchase price of your home cannot exceed 95% of the Area Median Purchase Price in Arapahoe County, which is $224,675 in 2013. It must be your principal residence.

The Boulder County Down Payment Assistance Program provides down payment and closing cost assistance to first-time home buyers purchasing a home in Boulder County (outside of the city limits of Boulder). Up to 8.5% of the purchase price may be borrowed.

Loan Terms: For households earning between 51-80% Area Median Income (AMI): 3% interest loan amortized over 10 years. For households earning below 50% Area Median Income (AMI): Deferred loan. No monthly payments, and 4% simple interest is charged for the first 10 years. Payment (principal plus interest) is due at sale, change of ownership, or refinance of property.

Homebuyer Requirements:

• Gross household income must be at or below 80% area median income for Boulder County (see Income and Asset Limits page). Household size includes everyone who will be living in the home. Household income will include all income regardless of who may be listed on the title and/or mortgage.
• Meet asset requirements
• Be a first-time home buyer (have not owned a home for the past three years). Exceptions are made for those who have been divorced within the past 3 years.
• Complete a Home Ownership Training Course (course must be completed prior to signing a purchase contract)
• Qualify to obtain a first mortgage large enough to afford the property (co-borrowers permitted). The City of Longmont does not accept subprime, interest-only or adjustable-rate mortgages.
• Total combined housing debt (first mortgage and all subordinate financing) may not be more than 100% of the value of the property at the time of closing. This may require the homebuyer to contribute more than the minimum required contribution (see below)
• Meet with the Housing Counselor for a one-on-one budget session
• Contribute a minimum of $2,000, or 1% of purchase price (whichever is greater) of own funds (lenders and/or developments may require more).
• Occupy dwelling unit being purchased as sole residence and not own other habitable property
• All household members must document lawful residency and provide an approved form of identification.
• Copies of Social Security cards for all household members over the age of six (6) must be submitted prior to closing.

Property Requirements

• The home being purchased must be in Boulder County, outside the City of Boulder limits.
• The home being purchased must be purchased as the sole residence of the homebuyer and the homebuyer may not own any other habitable property.
• Purchase price and/or appraised value may not exceed $322,000.
• The home being purchased must be owner-occupied or vacant at the time the purchase contract is signed. Down Payment Assistance Funds cannot be used to purchase a home that will displace any tenants. If the homebuyer is purchasing the home that they currently rent, that property is eligible for the Program.
• Homes being purchased must pass a third party inspection. Any health and safety concerns and/or code violations, as determined by the City, must be fixed and documentation provided to the City prior to closing, review the Property Inspection Requirements [PDF] for more details. Once an applicant’s final eligibility has been determined, the City will schedule an inspection. Please note that for households under contract, the program cannot guarantee that contract due dates will be met.
• Homes built before 1978 must have a Visual Lead Based Paint Assessment completed prior to closing. If there is any chipped, pealing, flaking or otherwise deteriorating paint, it must be tested for lead based paint, and if necessary, abated prior to closing.
• If the home being purchased is located in a flood zone, flood insurance must be purchased prior to closing and maintained for the life and the loan.

GRAND COUNTY

What is a Down Payment Assistance Loan?

It is a loan to be used for down payment, closing costs and prepaid expenses associated with buying a home.

Where do I start?

Usually, potential home buyers identify the property they want to buy and then contact a lender to start the financing process. It’s at that point that you should make an appointment at The Valley Home Store for a personal counseling session.

Even before you start looking for a home, you can schedule a pre-home buying appointment at The Valley Home Store to learn more about our programs. One of our staff experts will help determine which program and funding amount will work for you. If you qualify for down payment assistance, The Valley Home Store will work with your lender to prepare all the necessary documents for closing.

Is down payment assistance guaranteed?

No. There are numerous factors that can affect funding. Funds come from various government and private entities. Higher demand for loan assistance can reduce or deplete the funding pool and limit the availability of new loans. Other factors taken into consideration are the cost of the property, your personal financial situation, work history and residency.

How much money could I get with a down payment assistance loan?

That will depend on the DPA program that best fits your needs.  The ECLF program will lend up to $10,000. ECLF borrowers are required to directly contribute at least 50% of the DPA loan to the transaction.  The CDOH program will lend up to 4.5% of the purchase price.  CDOH borrowers are required to directly contribute 1% of the purchase price or $1000, whichever is greater to the transaction. Your lender and/or The Valley Home Store can help identify your options.

Are there income limits?

Yes.

How does a down payment loan work?

ECLF loans repaid in full within the initial 24 month period will include loan principal only. For ECLF loans not using an FHA first mortgage,  repayments that occur after the initial 24 month period will include loan principal plus a pro rata share of recognized appreciation (if any) based upon the percentage of the loan to the original purchase price.  For ECLF loans using an FHA first mortgage, repayments that occur after the initial 24 month period will utilize a 2.5% interest rate.

CDOH DPA loans will utilize a 2.5% interest rate.

Application for down payment assistance loans are taken at the same time an application for a first mortgage loan is made. Contact a lender for details and have your lender talk to us about the process. Your lender can assist you in choosing the option that’s best for you.

Aurora’s Home Ownership Assistance Program (HOAP) is dedicated to making affordable housing a realization for low to moderate income families in Aurora. The loan program offers up to $10,000 in financial assistance to help qualified, first-time homebuyers cover down payment and closing costs.

Below are the details for you, whether a potential first-time homebuyer, a lender or a realtor. Some of the changes to our assistance program areas follows:

• Assistance for the minimum required down payment, depending on the loan program and all allowable closing costs under HOAP guidelines up to a maximum of $10,000.
• Assistance is currently at 0 percent interest
• Assistance for Lead Hazard Screen on pre-1978 properties
• Assistance is limited to only HOAP; no other down payment programs are allowed
• Assistance requires first-time homebuyer to contribute from their funds 1 percent of the purchase price towards the transaction
• Other items you may be familiar with have not changed. These items are:
• Assistance requires a one-on-one appointment
• Assistance requires attendance of an approved homebuyer workshop
• Assistance requires a professional home inspection on the property
• Assistance requires a Lead Hazard Screen on pre-1978 properties
• Assistance is a silent-second loan due at sale, property is no longer the primary residence or when refinancing with cash out; no monthly payments required
• Assistance excludes buy downs, commissions, and/or points
• Assistance is not available on an occupied rental property

Buyer meets HUD maximum income restrictions by household size: (This is defined as the number of people residing in the home including, but not limited to, all minor children, spouses, fiancés, roommates, relatives.)

Number in household/Maximum Income allowed

• 1 person$47,000
• 2 people$53,700
• 3 people$60,400
• 4 people$67,100
• 5 people$72,500
• 6 people$77,850
• 7 people$83,250
• 8 people$88,600

* INCOME LIMITS SUBJECT TO CHANGE WITHOUT NOTICE

Buyer needs to qualify for the first mortgage according to the financial institutions guidelines. Purchase price limit currently $302,000.

1. Buyer needs to be under 80 percent median income (as shown above). The city of Aurora projects out income for a 12 month period based on both pay stubs and verification of employment (VOE). We will project the income based on future raises if stated on the Verification of Employment. Please feel free to call us to review specific situations.
3. Borrowers are allowed to have limited reserves.
4. Buyer may not have owned a home within the past three years, as evidenced by providing copies of at least three years tax returns.

Borrower Requirements

The borrower is required to attend a one on one counseling session with a housing counselor. The borrower needs to attend a MANDATORY free seminar held once a month. A counseling certificate is issued by the city of Aurora when the borrower has completed an approved seminar. A certificate is required in order for the borrower to receive funds from the city of Aurora. HOAP reserves the right to refuse any loan based on any reason management deems appropriate. Written notice of loan denial will be provided.

Property Eligibility/Seller Requirements

1. Property must be located within the city of Aurora.
2. Property must be a Single Family Residence, Condominium or Town home.
3. A full written inspection report is required by an inspection company on all properties. We will review this inspection for all health and safety items. Proof of repairs is required (receipts, etc.) prior to closing. In other words, we are unable to accept inspection conditions at the closing table.
4. Market value/purchase price is set through the financial institution’s appraisal.
5. A lead hazard screen is required on all pre-1978 properties.
6. Because of HUD Regulations, (Handbook 1378, Tenant Assistance, Relocation and Real Property Acquisition Chapters 2 and 3), the City of Aurora Home Ownership Assistance Program cannot assist if the purchase of the property is renter occupied. In other words, THE PROPERTY NEEDS TO BE OWNER OCCUPIED AT THE TIME THE CONTRACT IS WRITTEN, OR IF VACANT, SELLER MUST PROVIDE EVIDENCE THAT THE TENANT WAS NOT DISPLACED.
7. The Voluntary Acquisition Letter must be signed and dated by all sellers 24 hours prior to closing. In other words, we are unable to accept the Acquisition letter at the closing table

The Larimer Home Ownership Program is administered by the Loveland Housing Authority and offers down payment and closing cost assistance to low and moderate income families purchasing their first home. Families may not earn more than 80% of the area median income per HUD.  (Family of 1 – $47,700, Family of 2 – $54,500, Family of 3 – $61,300, Family of 4 – $68,100, Family of 5 – $73,550). Income requirements can change please check with the office to be sure you have the most current guidelines.  This program is funded mainly with federal, state and county dollars, because of that we are able to offer lower interest rates and more flexible terms then a traditional lender. The Maximum loan amount is $15,000 which has recently been increased, with an interest rate of 1% and a 20 year term.  Applicants must have 1% of the purchase price in the deal as their contribution.  The LHOP loan amount is based on that need with the max being $15K not all applicants will receive the max amount.  This program can used along with other down payment programs such as Colorado Housing and Finance Authority funds.

1. This program can be used by qualified buyer, purchasing a home in Larimer County.
2. The home value may not exceed the current HUD limits.
3. Funds will not be reserved until you have a home under contract and a first mortgage loan approval.
4. Applicants must be pre-approved by a lender prior to submitting an application.
5. Applicants must attend a first time home buyer class.
6. Home buyer/Applicant is able to work with any lender of their choosing for the first mortgage – The program reserves the right to not lend behind a first mortgage that would have questionable terms.

CITY OF PUEBLO