Coming Up With The Down Payment Is Easy With This Help
If you’re looking for down payment assistance in Colorado, we’ve got great news for you! There are two agencies that provide first time home buyers in Colorado with financial assistance so that saving enough money for a down payment will not be a problem.
The Colorado Housing Assistance Corporation (CHAC) offers a down payment assistance program that is available throughout Colorado. The CHAC website describes it like this:
CHAC provides low interest, flexible loans to low and moderate (80% AMI in most areas, 100% AMI for Arvada program) income first time home buyers for down payment and closing cost assistance throughout Colorado. The loan is recorded as a second mortgage (lien) on the property being purchased. All of the loans require repayment, usually monthly, although the start date of those payments may vary. All borrowers are required to have a minimum contribution to the transaction of $1,000 (minimum borrower contribution for the disability program is $750.00) that cannot be a gift. Other exceptions may apply.
The above program is a loan that will need to be paid back. However, if you want help with your down payment that is even juicier, the Colorado Housing and Finance Authority (CHFA) offers a down payment assistance program that is an outright grant! You could receive as much as $12,000 towards your down payment, and never have to pay it back. It is simply a gift to help you purchase your first residence in Colorado.
From the CHFA website:
never pay it back! With the CHFA DPA Grant, you can grant yourself the freedom to have your own home, thanks to a little help from CHFA. And you never have to pay it back!
how much can I get?
You can get a grant for up to 3 percent of your first mortgage loan* to help cover some of your down payment and/or closing costs.
That would equal up to $5,100 for a $170,000 first mortgage loan!
Talk to a CHFA Participating Lender to find out which CHFA loanprogram will give you the most savings!
Down Payment Assistance in CO
In addition to these statewide programs, you should also check to see if there are local programs offered in Colorado that provide additional help that can be applied toward your down payment.