Grants and Assistance For Colorado's First-Time Homebuyers in 2023

Dec 23, 2023 By Susan Kelly

The good news is that a lot of help is available to first-time homebuyers in Colorado. All the way from sage counsel and homebuyer education courses to actual cash for a down payment are all part of the package. Do your research and discover what opportunities you can take advantage of.

Can You Explain a CHFA Loan?

CHFA loans are available for homebuyers and homeowners interested in refinancing. Our experts will be able to guide you through this local phenomenon. In a nutshell, it could help you get the money you need to build the house of your dreams.

It's a collection of plans for first-time homeowners and those who are now underwater on their mortgages. If you need assistance locating a suitable CHFA program, our specialists are here to help.

Steps To Getting A CHFA Loan

To be eligible for CHFA loans, you must satisfy several criteria. To begin, your credit score has to be at least 620. If you don't have a good credit score yet, you should look into the CHFA's accessible tools to assist you in getting one, so you may apply for this loan program. Finally, the borrower's income as a whole must be within the parameters set by the program.

Borrowers using the CHFA Preferred Very Low-Income Program to purchase a home in Denver, for instance, must keep their annual household income below $52,400. (VIP).

Resources For First-Time Homebuyers In Colorado

First-time homebuyers in Colorado can get financial assistance from several state and municipal programs.

CHFA

The Housing and Finance Authority of Colorado serves the whole state by offering programs, including mortgage counseling and first-time homebuyer grants. Mortgages with a fixed interest rate and a term of 30 years are available through the CHFA FirstStep program in the form of FHA loans.

CHAC

Another official statewide organization that helps first-time homebuyers in Colorado is the CHAC. CHAC provides educational programs and counseling to its clients in addition to helping them save for a down payment.

Framework costs $75, eHomeAmerica costs $99 for the primary borrower, and $49 for each co-borrower. Both may be found online, and most components have Spanish translations.

CRHDC

In addition to CHAC, the NeighborhoodLIFT program from the Community Resources and Housing Development Corporation can help you. In addition to providing homebuyer education, NeighborhoodLIFT also provides preferential assistance to first responders, military personnel, and educators. Those who are eligible for the program will find the income limits to be looser.

Help For First-Time Homebuyers In Colorado

Grants and low-interest loans are available through DPAs to help purchasers meet their initial purchase costs. Paying a 10% down payment and paying $600 in closing charges. These assistance programs are frequently capped at a certain income level per household since they are designed to aid those with lower incomes.

CHFA

Grants from the CHFA can cover up to 3% of the total loan amount and don't need to be returned. For instance, if you borrow $400,000, you might get up to $12,000 in assistance with the down payment and/or origination costs. You may increase it to 4% of your mortgage if it doesn't cut it.

However, rather than a free handout, this comes in the shape of a second mortgage loan. You'll have to return that debt in full when you sell, refinance, or pay off your original mortgage. Complete repayment may also be triggered by other events.

CHAC

Loans are the sole financial aid option available through CHAC. No maximum loan amount or interest rate for homebuyers is disclosed. In any case, the company specifies that "the loan is recorded as a second mortgage on the property being acquired" on its website.

The loans must be repaid, often in equal monthly installments, though the payments' due dates might shift. In addition, "All borrowers are obliged to have a minimum payment of $1,000 to the transaction, which cannot be a gift." There may be several exceptions to this rule.

NeighborhoodLIFT

The NeighborhoodLIFT program offers up to a $15k down payment assistance loan for eligible properties. The income guidelines and a map of suitable locations are available as downloadable PDFs. Single-family detached homes, townhomes, condominiums, properties with four or fewer units, and PUDs are all fair game (PUD).

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