First Time Home Buyers
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