Last Updated on August 7, 2022 by Danielle McDonald
Mortgage Assistance for Homebuyers in Colorado
City of Aurora – (HOAP) for First-Time Homebuyers
Home Ownership Assistance Program (HOAP) is committed to making housing for families with low- or moderate incomes in the city of Aurora affordable.
The Homeownership Assistance Program provides financial assistance for first-time homebuyers up to $10,000 with zero interest to help offset their down payment and closing costs. This assistance is received as a silent second loan. It is due upon the sale or refinancing of the property, or when the borrower is no longer living in the property as their primary residence.
Applicants must be first-time buyers who earn within the 80% of the area median income in order to qualify for HOAP. They must also contribute at least 1% of the purchase price using their own funds, and attend an approved workshop on homebuyer education. However, the assistance is only given once an one-on-one appointment is done. HOAP cannot be combined with any other down payment programs.
Properties bought with HOAP funds must be the borrower’s primary residence. It must also be within Aurora, and must be within the program’s maximum purchase price of $332,000. Single-family residences, condominiums, or townhomes are all eligible property types. Furthermore, all properties are subjected to a full written inspection report, and a Lead Hazard Screen on properties built before 1978.
All applicants must be within 80% of the area median income:
- 1-person household: $52,000
- 2-person household: $59,400
- 3-person household: $66,850
- 4-person household: $74,250
- 5-person household: $80,200
- 6-person household: $86,150
- 7-person household: $92,100
- 8-person household: $98,050
Boulder County DPA for First-Time Homebuyers
The Boulder County Down Payment Assistance Program is a program that helps first-time home buyers to purchase a home in Boulder County (outside the city limits of Boulder). This program is designed in order to help residents achieve their dream of owning a house.
Homebuyers who qualify for the program can borrow up to 10% (up to $40,000 maximum) to pay down their down payment or closing costs. A 3% interest loan amortized over 10 years is available for households with incomes between 61 to 80% of the area median income (AMI). Meanwhile, households with below 60% of the AMI receive a deferred loan with zero interest and no monthly payments. Moreover, if only the property is sold or refinanced, or changed ownership, or no longer the primary residence of the owner, the loan will be repaid.
Applicants must be first-time buyers who have never owned a house within the last three years. However, divorcées are given an exception.
Every applicant must complete a Home Ownership Training Course before applying. The validity of these certificates lasts for 12 months from the date of the class. They must also be valid at the time that an application is submitted.
Qualified applicants must also meet with a Housing Counselor for a one-on-one budget counseling session. Borrowers must be eligible for and obtain a large first mortgage sufficient to cover the cost of the property (co-borrowers are permitted). Remember that the City does not accept adjustable-rate, interest-only or subprime mortgages. Additionally, buyers must contribute at least $2,000, or 1% of their purchase price from their own funds. However, households with liquid assets over $25,000 may need to contribute more. The total amount of housing debt, including all subordinate financing and first mortgages, cannot exceed 100% of the property’s value. Homebuyers, then, may be required to contribute more than the minimum contribution.
Any property purchased with program funds must be the borrower’s primary residence. It must also be in Boulder County, just outside the limits of the City of Boulder. The program’s maximum purchase price is $411,000 for existing properties and $462,000 for newly constructed houses. But remember, the purchase contract must be signed if the home is vacant or owner-occupied. Purchasing the property must not displace tenants. Furthermore, every property must pass a third party inspection. Any safety and health concerns and/or code violations must be addressed and documented before closing.
All homes built prior to 1978 must also have a Visual Lead Based Paint Assessment done before closing. The program is not available to homes located within the 100-year or the 500-year flood plains.
Colorado Housing and Finance Authority’s Homeaccess Program
The Colorado Housing and Finance Authority (CHFA) offers assistance to qualified homebuyers through the CHFA Homeaccess program. This aims to make the goal of homeownership a reality for residents of Colorado.
The CHFA HomeAccess provides first-time homebuyers assistance as a zero-interest second mortgage up to $25,000. Then, these funds can be used to help with closing costs, down payment, and prepaids. Repayment can be deferred until the first mortgage loan has been paid or begins after 361 months.
Applicants must meet various guidelines in order to be eligible for the CHFA Homeaccess program. It is only open for first-time homebuyers or qualified veterans who earn within the set income limits. Borrowers must also be taking care of a child with a permanent disability, or have a permanent disability. Moreover, all borrowers must have at least a 620 credit score or higher to qualify. Borrowers without credit scores are also allowed. This program can be exclusively used in conjunction with FHA203(b) or USDA-RD loans. The maximum loan limit for all mortgages is the lower of $548,250, or the amount set by the implemented FHA or USDA-RD guidelines.
Homes purchased using program funds must be occupied by the owner and be the borrower’s primary residence. The following property types are eligible: single-family, one-unit, attached or detached homes; condominiums, PUDs, and manufactured housing on permanent foundations (including single-wide). The program guidelines do not allow Properties with Accessory Dwelling Unit (ADU).
Douglas County Down Payment Assistance for First-Time Homebuyers
The Douglas County Housing Partnership works to bridge the gap between low and high housing costs. Therefore, they offer low- and medium-income families the chance to buy their first home in Douglas County through the DCHP Down Payment Assistance Program. This program also gives these buyers the opportunity to borrow at a lower interest rate, increasing their purchasing power.
Applicants must be first-time buyers as defined by HUD. Therefore, these are people who have never owned a home in the past three years. Residents of Douglas County are also preferred. They must contribute a minimum of $1,000 of their own funds to the purchase, and their income must not exceed 80% of the area median income.
In addition, all program borrowers must live in the property as their primary residence for at least 10 years (subject to HUD affordability regulations). The property must be in compliance with HUD safety guidelines, and the purchase price cannot be over $401,000 (or $433,000 for newly constructed homes).
This programme similar to the down payment First-Time Homebuyer Assistance Programs in California.
CHAC Down-Payment Assistance Program
The Colorado Housing Assistance Corporation (CHAC) provides qualified first-time homebuyers with the CHAC Down Payment Assistance Program which is a way to finance the down payment and/or closing cost of their mortgage.
The CHAC Down Payment Assistance Program offers low-interest, flexible second mortgages for first-time homebuyers with low and moderate incomes. The provided assistance can be used to pay the down payment of closing costs on a new house.
The CHAC Down Payment Assistance Program is only available to legal residents who are first-time homebuyers and have not owned a house in the past three years. They must declare their assets and income, and contribute at least $1,000 (and the minimum contribution for the disability program is $750.00). This requirement cannot be met by gift funds. In addition, the down payment assistance program also requires that the home purchased with the grant must be the primary residence of the borrower; secondary homes and investment properties are not permitted.
CHFA FirstStep Plus
The Colorado Housing and Finance Authority provides potential homeowners the CHFA FirstStep Plus, which is a down payment assistance program that works together with the CHFA FirstStep home loan. This program helps individuals pay some of the initial costs associated with a mortgage transaction.
The FirstStep program offers a fixed-rate FHA203(b) purchase loan for a 30-year period. However, remember that the FHA’s F203(k) loans are not allowed. After a borrower is approved for an FHA home loan, they can apply for the FirstStep Plus program to receive down payment assistance. This is a second mortgage that can be up to 4% of the first mortgage loan amount. These proceeds can be used to pay down payments, closing costs, prepaids and/or principal reductions. This loan is zero-interest and requires no monthly payments. Plus, there is no accrued interest. If the property is not the borrower’s primary residence currently, the second mortgage must be paid off in full upon sale or refinance.
The FirstStep Plus program borrowers must be first-time homebuyers. This means they have no ownership interest in a principal residence for the past three years. Qualified veterans may be considered first-time homebuyers (please refer to FHA guidelines for borrower legal status). This requirement is set for non-targeted areas. For those in the targeted areas, the borrower need not be a first-time homeowner.
Before the closing date, all borrowers and co-borrowers must take an online or classroom-based course on homebuyer education by a CHFA-approved provider. Moreover, the CHFA requires applicants to contribute at least $1,000 from their own funds (gifts are permitted).
The minimum credit score of 620 is required for all borrowers. However, applicants without credit scores are allowed; they can be manually underwritten if they meet all CHFA and FHA requirements. For borrowers with scores between 620 to 659, the maximum DTI is 50%. It is 55.00% for those with scores of 660 or higher. The DTI should not exceed the lower of CHFA’s DTI limit, which is the DTI allowed by FHA, or the DTI limit set by the AUS or manual underwriting guidelines.
The FirstStep Plus program requires that any property bought with the funds it provided must be the borrower’s primary residence. The eligible property types are single-family, one-unit attached or detached homes, PUDs, condominiums, and manufactured housing on permanent foundations. The limit for all mortgage loans has a maximum of the lower $510,400, or the amount set by FHA. The total loan limit includes financed MIP.
Limits to the program are determined by household size, county, and targeted or non-targeted areas, and purchase price limits. The information about income and purchase price limits can be found on the website at www.chfainfo.com.
CHFA SmartStep Plus
Homebuyers can get closing costs and down payments assistance through the CHFA SmartStep PLUS program. The Colorado Housing and Finance Authority (CHFA) provides this program to qualified borrowers who are unable to pay the upfront costs of purchasing a house.
The SmartStep program offers a fixed 30-year FHA, VA, USDA-RD home loan at a fixed rate. Besides the first mortgage, the SmartStep Plus program offers eligible applicants a grant or a second mortgage to help with the down payment, closing costs, and/or prepaids. DPA grants allow the borrower to receive up to 3% of total loan amount, and it does not affect the DTI. In the case of DPA second mortgages, the borrowers can receive up to 4% of their home loan amount, and the payments on the second mortgage will be due upon its maturity.
The SmartStep Plus program is not only for first-time homebuyers. The borrower may currently be an owner of one residential property, but they can only have one CHFA-financed property. Before the closing date, all borrowers and co-borrowers must take an online or classroom-based course on homebuyer education by a CHFA-approved provider. Moreover, the CHFA requires applicants to contribute at least $1,000 from their own funds (gift funds are allowed).
The program has a fixed income limit of $126,000, and all borrowers must have a minimum credit score of 620.
All property purchased using funds from the SmartStep Plus program must be occupied by the owner; it must be the borrower’s primary residence. Additionally, the property must be one living unit and the maximum loan amount, including financed MI/MI, must not exceed $510,400 or the limit required by loan type (FHA, VA, USDA).
Metro Mortgage Assistance Plus Program
People can afford to make monthly mortgage payments, but not all are able to pay the expensive upfront costs associated with a home loan. The Metro Mortgage Assistance Plus Program was created by the Denver Office of Economic Development to assist them in overcoming this obstacle.
The Metro Mortgage Assistance Plus Program allows borrowers to apply for a fixed rate 30-year home loan with a qualified lender, so they may be eligible for a grant up to 4% of the mortgage amount. The grant funds can be used to pay a portion or all of the closing costs and down payment.
This program isn’t limited to first-time homebuyers, unlike many assistance programs. The program has set annual household income limits for applicants. They must have a minimum credit score of 640 and a maximum ratio of debt-to-income of 45%. An HUD-approved education course for homebuyers is also required to be completed by the borrowers.
The Metro Mortgage Assistance Plus Program is only available to single-family, detached homes, duplexes, condominiums, or townhomes. These properties must be used as the borrower’s primary residence, and must be located in Denver, Arvada, Bennett, Boulder, Brighton, Broomfield, Castle Rock, Centennial, Commerce City, Dacono, Edgewater, Englewood, Firestone, Golden, Lakewood, Littleton, Parker, Sheridan, Thornton, Westminster, or Wheat Ridge. In addition, Jefferson County, Arapahoe County, and Boulder County are program participants for properties in unincorporated areas. Metro Mayors Caucus jurisdictions are required to join the program for the whole year.
- 1 to 2 persons: $95,880
- 3 or more persons: $111,860
MetroDPA Down Payment Assistance
MetroDPA provides a down payment assistance program for low- and medium-income Colorado residents living in the Denver Metro Area to get affordable and safe housing.
Eligible applicants for MetroPDA are offered with a 30-year, fixed-rate mortgage and down payment assistance of up to 6% of their first mortgage loan amount. This assistance is provided in the form of a 3-year, forgivable second mortgage that has zero interest and no repayment requirements.
There are no first-time homebuyer requirements for the MetroDPA program. However, borrowers must meet certain other stipulations. To be eligible for an FHA, USDA or VA loan, borrowers must have a household income of at least $150,000, and a credit score of at least 660. The conventional loan requires a minimum score of 640. Moreover, the applicant must complete an approved HUD- or CHFA-approved homebuyer education program.
The MetroDPA funds can only be used to purchase a home that is to serve as the borrower’s primary residence. The homes to be purchased must be located in one of these qualified areas:
Cities and Towns: Arvada, Aurora, Bennett, Berthoud, Boulder, Brighton, Broomfield, Castle Rock, Centennial, Commerce City, Dacono, Deer Trail, Denver, Edgewater, Englewood, Erie, Evans, Federal Heights, Firestone, Fort Collins, Frederick, Golden, Greeley, Highlands Ranch, Keensburg, Lakewood, Littleton, Lochbuie, Lone Tree, Longmont, Mead, Northglenn, Parker, Platteville, Sheridan, Superior, Thornton, Watkins, Westminster, Wheat Ridge.
Counties: Adams County, Arapahoe County, Boulder County, Broomfield County, Denver County, Douglas County, Jefferson County, Larimer County.
Turnkey Plus Mortgage Program
The Economic Development Department of El Paso County, Colorado launched the Single Family “Turnkey” Mortgage Program. This program provides a 30-year mortgage and down payment assistance to assist low- to moderate-income homebuyers in El Paso County.
Additionally, Colorado’s Turnkey Mortgage Origination Program provides a 30-year, fixed-rate mortgage, and a grant for down payment assistance up to 4% of the mortgage amount.
There is no requirement for a first-time homebuyer, or a federal “recapture taxes” to qualify, unlike most down payment assistance programs. However, there are some requirements that borrowers must fulfill in order to be eligible. This program is available to qualified borrowers in El Paso County, and Colorado Springs. The applicants’ household annual income must fall within the program’s determined limit of $108,920. Moreover, their debt-to-income ratio must not be more than 45%, and they need to have a credit score of a minimum of 640 to be eligible for the 4% grant. Those with FHA loans and credit scores between 659 and 640 will be eligible for a 3% grant. Borrowers who finance their home using Freddie Mac HFA Advantage Conventional Loans must attend a homebuyer education course.
This program provides financial assistance to qualified applicants who are interested to purchase a home, but cannot afford the upfront costs. It includes the down payment, closing costs, and prepaid items required to get ownership. These costs can be significant, and people might find themselves stuck in a renter’s trap if they are unable to pay them.
Are you interested in the First-Time Homebuyer Assistance Programs in Connecticut?