Denver area down payment assistance grants are now available!
Saving for a down payment can be difficult. Let's face it, you have a lot of bills every month, so putting away something extra for a future down payment is a stretch to say the least. Your rent keeps going up, and you see home prices continue to rise as well. You know buying a home is a good investment, but it just seems out of reach.
You are not alone if you are struggling to save for a down payment. But the good news is, there is help! There are many organizations in Colorado who help home owners with down payment assistance and grants, and there are even 100% financing programs still available such as USDA and VA loans. You can become a home owner right now and start building equity for your future!
So how do down payment grants work?
The largest down payment grant program in Colorado is called CHFA (Colorado Housing Finance Authority). CHFA provides a grant for up to 4% of the price of the home, meaning that your down payment is covered. You will, however, have to find the funds for closing costs. However, sometimes your Realtor can negotiate with the seller to pay some or all of your closing costs.
Grant or loan?
The 4% grant is truly that- a grant. It doesn't have to be repaid, ever. However, sometimes 4% funding isn't enough. If that's the case for you, there is also a 5% "silent" 2nd mortgage available through CHFA. The silent 2nd will fund up to 5% of the sales price of the home, but does have to be repaid eventually. It's called a silent 2nd because there is a 0% interest rate and you don't have to make a payment on the loan. However, when you go to sell the home, or if you want ot refinance, the 2nd will have to be paid off.
Does it have to be repaid?
The grant never has to be repaid. However, if you choose the silent 2nd option, it will have to be repaid when you sell your home or if you want to refinance.
How much does it cost?
When you obtain down payment assistance, there is a 1% origination fee that is charged on the loan (1% of the loan amount), in addition to the other loan closing costs. Call us for an estimate on the total closing costs for your loan scenario.
How will getting assistance affect my mortgage rate?
The interest rate on down payment assistance loans is slightly higher than a "regular" loan. However, you will be eligible to refinance to a lower rate and payment after just 6 mortgage payments have been made.
Do I have to come up with any money out of my own pocket?
The minimum cash investment out of your own pocket is $1000.
What other requirements are there?
You must take a qualified home buyer education course. There are both online and in-person options. Contact us for information where you can take the course.
How do I find out more?
Contact us at 303-670-0137 or firstname.lastname@example.org for more information on this wonderful loan option, or to see if you qualify. We are here for you!