Colorado Springs

First Time Home Buyers

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Colorado First Time Home Buyer Programs

CHFA (Colorado Housing and Finance Association)

–    Offers programs throughout Colorado

–    Can be used with FHA, VA, USDA, and Conventional Loan Programs

–    Offers both a forgivable grant program and a 0% 2nd mortgage

–    Does not require buyer be a first time home buyer

–    Requires homebuyer education course (free in person, $99 online)

–    Income limits apply but they use qualifying income

–    Both 1st mortgage and 2nd mortgage (or grant) use CHFA (higher rates)

CHAC (Colorado Housing Assistance Corporation)

–    Loan Amount 6% of the purchase price up to $10,000 (whichever is less)

–    Loans up to $5,000 – $50 a month payment ($3,000 minimum)

–    Loans $5,100 – $10,000 – amortized over 360 months

–    Rate – 5%

–    Fees: May include $5 monthly service fee, $100-$150 doc prep fee, $200 commitment fee, $16-$21 recording fees

–    Able to combine with FHA, VA, USDA, Conventional Loans

–    First mortgage provided at better interest rate (market rate)

–    Requires homebuyer education course (free in person, $99 online) – also requires second more in depth phone evaluation

–    Income limits apply – use household income

El Paso County Turnkey

The El Paso County, Colorado “Turnkey Plus” Mortgage Program provides a partially forgivable Down Payment Assistance (DPA) Loan to individuals and families who want to purchase a home anywhere in El Paso County, including the City of Colorado Springs.  

Qualified homebuyers may receive up to a 4% soft second mortgage loan at 0% Interest, which is deferred for 30 years.

The El Paso County Housing Authority, as Program Sponsor, rolled out the “Turnkey Plus” Mortgage Origination Program on February 15, 2019.

Forgivable DPA Loan

–     0% Interest

–     30-year deferred Second Mortgage

–     60% of the Second Mortgage Amount forgiven pro rata over the first five years (60 months) at 1/60th per month.

–     Remaining 40% of the Second Mortgage Amount will be forgiven at the end of the 30-year period/maturity date of the first mortgage