Colorado is one of the BEST States for down payment assistance programs. Whether you are a first time home buyer or not there are programs available.
HUD has a great list of the down payment assistance programs available in Colorado (or any state, actually). Here’s the link to the list of programs in Colorado:
Once there you will have an, almost, complete list of the programs along with links.
They are categorized by geographical limitations for the program – by city, county or statewide.
Generally, if a program is offered in a city the county program can not be used. And if a county program is offered the statewide program can not be used. The exception being CHFA.
And example would be Aurora and the Adams and Arapahoe County programs. If you are purchasing in the city limits of Aurora you can not use Adams or Arapahoe County programs.
In the video I go into some of the details of the Aurora HOAP, Boulder &, Commerce City programs to explain how they work.
Most city and county down payment assistance programs require you to be a first time home buyer. First time home buyers are considered anyone who has not owned a home in the most recent 3 years. Aurora & Commerce City have a first time buyer requirement but Boulder does not.
Most down payment assistance programs have income limits that range from 80% to 120% of area median income (AMI). City & County programs are normally closer to the 80% AMI limit. AMI does vary based on household size and county so they can be a little confusing but if you follow the program guidelines it is fairly easy to figure out.
How much assistance and the way they provide assistance varies significantly from program to program.
Aurora HOAP, for example, offers up to $10,000 but no more than down payment plus closing costs. Commerce City is the same but repayment terms differ:
Aurora HOAP is at 0% rate and no payments but must be paid off at time of sale, cash out refi or $0 balance on 1st mortgage.
Commerce City has a 3.5% rate on their second mortgage and is repaid over 10 years.
Both Aurora and Commerce City have a minimum contribution of 2% of the purchase price you must put towards the cost of the home purchase.
Boulder has 3 programs:
Solutions Grant – 5% of the purchase price
Middle Income Loan – up to $200,000
H2O Loan – 15% of the purchase price or $50,000, whichever is less
CONFUSED or OVERWHELMED? This is just an example of 3 programs that show you just how many details there are to these programs and how different they can be.
The best thing you can do is work with a Mortgage professional that understands these down payment assistance programs or going through each of the program links on the HUD website to determine which one is best for you. When you work with a Mortgage Advisor familiar with these options you can do two things at once – qualify for a loan in general and identify the best down payment assistance programs.
Whether you have low income, high income, disability, prefer Conventional over FHA, purchasing in a particular city or county there is most likely a down payment assistance program available for you!
Helpful Links & Related Videos:
Top 3 CHFA Programs
HUD’s list of Colorado Down Payment Assistance Programs: https://www.hud.gov/states/colorado/homeownership/buyingprgms
HUD’s AMI Calculator: https://www.huduser.gov/portal/datasets/il.html