May 16, 2021

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Colorado First-Time Homebuyer Assistance Programs

Colorado is a popular place to change clothes, with an abundance of outdoor recreational opportunities and expansive spaces. However, buying a home in the state can be challenging and competitive, especially for First time buyer. If you are looking for your first home, Colorado’s state-owned real estate finance agency, the Colorado Housing and Finance Authority, offers a variety of mortgage and assistance programs that can help make home ownership more affordable for you.

Colorado first time buyer loan programs

The Colorado Housing and Finance Authority (CHFA) ​​provides access to fixed rate mortgages and financial assistance for both your down payment and closing costs. In general, you might be eligible for a CHFA program if you:

  • Have a credit score of at least 620
  • Complete a homebuyer training class
  • Meet income requirements (based on the loan program, the size of your household, and the location of the home).
  • Can contribute at least $ 1,000 towards the purchase
  • Meet your mortgage lender’s credit requirements

CHFA offers a range of programs for homebuyers including:

  • CHFA FirstStep – The FirstStep and FirstStep Plus programs from CHFA offer first-time buyers, veterans or buyers who are in a Target area, together with deposit assistance if required. In addition to meeting the general CHFA loan requirements, the home you are buying and your income must be within the program Purchase price and income limits, respectively.
  • CHFA HomeAccess – CHFA’s HomeAccess and HomeAccess Plus programs can provide a 30-year FHA or USDA fixed rate loan to a first-time purchaser or veteran who either lives with a permanent disability or is the legal guardian of a child with a permanent disability. As with other CHFA programs, there are these too Income and purchase price limitsHowever, if you are eligible, you can also get up to $ 25,000 down payment assistance with your loan.
  • CHFA SectionEight – With CHFA’s SectionEight and SectionEight Plus Homeownership programs, a first-time buyer or veteran who is also receiving Section 8 assistance from a Section 8 agency can obtain a 30-year FHA or USDA fixed rate loan. You can combine this program with CHFA’s Down Payment Assistance, but there is an income limit for borrowers: USD 126,200.
  • CHFA SmartStep – CHFA’s SmartStep and SmartStep Plus programs offer 30-year fixed-rate FHA, VA or USDA loans, as well as support with CHFA down payment. As with the SectionEight program, the income limit is $ 126,200.
  • HFA Advantage and Preferred Loans – CHFA also offers Fannie Mae HFA Preferred and Freddie Mac HFA Advantage loans for up to 97 percent funding, including an Advantage loan for low-income borrowers (known as the Very-Low Income Program or VLIP). These loans can also be combined with CHFA’s advance payment assistance.

Colorado Down Payment Assistance

CHFA offers two types of Advance payment assistance: a grant and a second mortgage. The CHFA Down Payment Support Grant allows you to receive funding for up to 3 percent of your first mortgage (e.g., $ 6,000 for a $ 200,000 mortgage). The grant does not have to be repaid. However, it can only be combined with a SectionEight or SmartStep first mortgage.

CHFA’s Second Mortgage provides support funds for up to 4 percent of your first mortgage ($ 8,000 on a $ 200,000 mortgage). You don’t have to repay this assistance until you’ve paid off or refinanced your first mortgage, or sold your home. This option can be combined with a FirstStep, HomeAccess, Preferred, SectionEight or SmartStep first mortgage.

Note that you can only use one of these options in conjunction with your first mortgage, not both.

Other first-time buyer loan programs

In addition to CHFA’s programs, there are many loan options to suit your needs as a first-time buyer. When looking for a mortgage, consider checking out low or no down payment loans like FHA, VA, or USDA mortgages, or a 3 percent less conventional loan from Fannie Mae or Freddie Mac. Depending on your occupation, you can qualify for that too Good neighbor next door Program that has a very low down payment requirement for homes in certain areas. Discover the guide from Bankrate too Loans and Programs for First Time Buyers to learn more.

Getting started

As you learn more about the different loan programs and the support you might qualify for, it is a good idea to keep an eye on the newest Colorado Mortgage rates. Be sure to compare the loan options of different mortgage lenders. When you’re ready to buy your first home and interested in a Colorado Housing and Finance Authority program, you can connect with a participating lender through the agency website.

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