Ready to buy your home? But need help with your down payment?

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Down-Payment-assistance

Depending on your situation, there are several programs and incentives available for the Colorado first-time home-buyer. Buying your home can be hard if you can’t come up with your down payment. Luckily, they is a way of getting help with the required amount for your down-payment.

How can you get a down payment assistance?

 The money you receive through the program may be considered one of three things: a grant, an interest-free loan or a debt you pay off in the future. Typically, you’ll have to agree to live in the home and use it as your principal residence for a certain period of time to avoid having to repay the money. If your down payment assistance is treated as a loan, it would have to be paid in full if you sold the property or finished making all of your mortgage payments.

Who’s Eligible for Down Payment Assistance?

 

Not everyone will qualify for down payment assistance and each program has its own rules for determining eligibility. Generally, it’s based on your income and how much home you’re buying. Most programs are available to anyone with an annual income less than $65000. So if you are making less than $65000/year, you have a good chance to get approve. Sometimes, your earnings have to be at or below 80% of the area median income where you’re planning to buy. Many of these programs are limited to first-time buyers. You will be required to attend a homebuyer education class. 

 

 

 

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Below is a few options available for a down payment assistance. Keep in mind, we cannot guarantee you will be approve until you submit an application. Beside those options below, we do offer others ways of lowering your down payment. Our goal is to get you approve with the least amount down. Applying is very easy and fast. We can get you approve in less than 24h. In case you do not qualify for a down payment assistance, know that most mortgages are available to qualified borrowers with as little as 3 percent down, which can even be raised by a gift from a family member or employer or a grant from a government agency. Despite a bankruptcy, accounts in collections, late/missed payments, past foreclosure, you can still get approve with a low down payment (3 to 3.5%)

PROGRAM AVAILABLE AT THE STATE LEVEL

Colorado Housing Finance Authority

The CHFA team works together throughout Colorado to Increase the availability of affordable, decent, and accessible housing for lower income Coloradans; and strengthen the state’s economy by providing financial assistance to businesses.

general program requirements

The following are some of CHFA’s general requirements:

  • All borrowers have a mid-credit score of 620 or higher (CHFA Advantagesm program requires a mid-credit score of 680)
  • Total borrower income must not exceed CHFA’s income limits
  • Attend a CHFA-approved homebuyer education class (in person or on-line) prior to loan closing (purchase only)
  • Make a minimum required investment of at least $1,000 toward the purchase of the home

In addition to meeting CHFA program requirements, borrowers must qualify according to the underwriting guidelines as determined by one of CHFA’s Participating Lenders.

 

important next steps

  • Take a homebuyer education class:

    • You must complete a CHFA-sponsored homebuyer education class before closing on your home loan under a CHFA program. We recommend taking the class early in your housing search so that you are prepared to find a lender and real estate agent who are the best fit for you.
    • In-person and online options are available.
    • Register for a class today!

  • Contact a CHFA Participating Lender:

    • CHFA loan programs are available through our statewide network of CHFA Participating Lenders.
    • A CHFA Participating Lender will help you determine which CHFA loan programs will work for you. They will walk you through the entire loan process from application to closing.

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.

 

 

BOULDER COUNTY/CITY OF LONGMONT

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

Grand County Housing Authority (GCHA) now offers a down payment assistance program for Grand County residents using funds from various governmental and private entities. Low and moderate income home buyers may apply for down payment and closing costs as necessary to obtain home ownership. Down payment assistance funds are loaned to the homebuyer as a low interest mortgage behind the first mortgage.

 

Qualifications

  • This program is not limited to first time homebuyers or low-income households.
  • Applicants must first pre-qualify for a first mortgage at a lending institution. The income used to pre-qualify for the first mortgage is also the income that will be used to qualify for the down payment assistance loan.
  • The applicant must have greater than $1,000 or 1% of the purchase price of the home of his/her own money to use toward the down payment.
  • The home must be the borrower’s primary residence for the duration of the loan; it may not be used as a rental property.
  • Applicants must work a minimum of 32 hours per week or 1,600 hours per year in Grand County as an employee or as a sole proprietor who is actively involved in his/her own business.
  • Applicants may not own real estate, unless it will be used for building a home with funds being requested through loan.
  • Applicants must complete the Grand County homebuyers education workshop prior to the closing date.
  • The program has income limits. Contact us to see if you qualify.
  • Salaries and other sources of income (i.e. disability payments, Supplemental Security Income {SSI}, etc.) from all persons living in the home are used to compute the household income, as defined in U.S. Department of Housing and Urban Development (HUD) 24 CFR, Section 5.609, Annual Income.
  • The program has asset limits. Contact us for details.
  • GCHA, its board, and its funding partners reserve the right to review each case based on extenuating circumstances.

 

Larimer County

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.

Eagle 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.

City of Aurora

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.
  2. Borrowers are allowed to have limited reserves.
  3. 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

CITY OF BOULDER

The City of Boulder is committed to making homes in our community available to a variety of people. We offer opportunities for homeownership to those with low, moderate, and middle incomes.

 

We promote homeownership through three programs: Permanently Affordable Homes Program, Downpayment Grant (Solution Grant), and Downpayment Loan (House to Homeownership – H2O). You’ll find a summary of programs below, but please read the Homebuyer Handbook for details on each program.

 

The program maintains strict occupancy and rental restrictions to prohibit the homes from becoming income properties:

 

•Owner occupancy is required.

•Short term rentals (30 days or less) are never permitted for owners of permanently affordable homes per city ordinance.

•Long term rentals of the entire home are limited to one year out of every seven, but not permitted in the first five years. Licensing regulations must be followed.

•A long-term rental of only one room in the home is permitted. Licensing regulations must be followed.

 

The Solution Grant assists with down payment and closing costs for buyers that qualify for the low/moderate income program. The grant bridges the gap between money the buyer has available for down payment and closing costs and the minimum required to close. These grants are for buyers purchasing Permanently Affordable homes, or for the Thistle Communities Homeownership Program.

 

A household that qualifies for the Solution Grant usually has less than $15,000 in assets. There needs to be a demonstrated gap between assets needed to close the transaction and assets available.

 

Income Max

1 PERSON 2 PEOPLE 3 PEOPLE 4 PEOPLE 5 PEOPLE
$57,990 $66,220 $74,525 $82,755 $89,385

Based on gross income for standard employees and net income for self-employed people

Assets Max

1 PERSON 2 PEOPLE 3 PEOPLE 4 PEOPLE EACH ADDITIONAL PERSON
STANDARD HOUSEHOLD $55,000 $70,000 $85,000 $100,000 +$15,000
RECENTLY DIVORCED $85,000 $100,000 $115,000 $130,000 +$15,000
PERMANENTLY DISABLED $140,000 $155,000 $170,000 $185,000 +$15,000
RETIRED $85,000 $100,000 $115,000 $130,000 +$15,000

 Exempt Retirement Assets

Retirement assets can be deducted based on this chart. Assets must be in a designated retirement account to be exempted.

AGEEXEMPT AMOUNT

Under 40$30,000

40-55$55,000

Over 55$110,000

city of loveland

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

Purpose

The Home Down Payment Assistance Program (HDAP) is an affordable housing mortgage assistance program made available by the City of Pueblo’s Department of Housing and Citizen Services in conjunction with private lenders to help low- to moderate-income individuals and families purchase their first home.

 

Applicants can apply for Veterans Affairs (VA), Federal Housing Administration (FHA), Fannie Mae, or other conventional insured mortgages under any private lender program. The home, when assisted by HDAP funds, must meet minimum housing quality standards for health and safety as set by the U.S. Department of Housing and Urban Development (HUD). The borrower must qualify for a first mortgage through a private lending institution.

 

How the Program Works

Eligible borrowers will receive a deferred forgivable loan with a maximum amount of $5,000, only if needed. These funds can be applied toward the payment of usual and customary closing costs and/or matching up to 50% of the required down payment (this may vary depending on the type of mortgage you select). The borrower must occupy the home as their principal place of residence. Renting the property is not allowed.

 

The loan is deferred for a period of 5 years. After this 5-year period, the loan is automatically forgiven as long as the homebuyer has met the requirements under the deed and promissory note. If the borrower sells or refinances the property during the 5-year period, the loan shall be repaid in full.