As a first-time homebuyer in Colorado, coming up with the funds for a down payment can be a significant barrier to homeownership. Fortunately, there are several down payment assistance programs available to help make homeownership more affordable. In this post, we’ll explain what down payment assistance programs are and provide an overview of the options available in Colorado.
What are Down Payment Assistance Programs? Down payment assistance programs (DPAs) are grants or loans that help cover the upfront costs associated with buying a home. These programs are typically offered by state and local governments, non-profit organizations, and private companies. The goal of these programs is to make homeownership more accessible by reducing the amount of money a buyer needs to put down on a home.
Types of Down Payment Assistance Programs:
- Grants: These are funds that do not need to be repaid. They are typically provided by non-profit organizations or government agencies.
- Second Mortgages: These are loans that can be used to cover the down payment and closing costs. They typically have a lower interest rate than a first mortgage.
- Deferred Loans: These loans do not need to be repaid until the home is sold, refinanced, or paid off. They are typically provided by government agencies.
- Forgivable Loans: These loans are forgivable after a certain period of time, typically five to ten years. They are typically provided by government agencies.
Here’s a brief overview of the options:
- CHFA SmartStep: This program offers a second mortgage of up to 4% of the home’s purchase price. The loan has a fixed interest rate and is repayable over 30 years.
- CHAC Down Payment Assistance: This program offers a second mortgage of up to 3% of the home’s purchase price. The loan has a fixed interest rate and is repayable over 10 years.
- Denver Metro Mortgage Assistance Plus Program: This program offers a forgivable loan of up to 4% of the home’s purchase price. The loan is forgiven after five years of homeownership.
- Aurora Homeownership Assistance Program: This program offers a forgivable loan of up to $10,000. The loan is forgiven after five years of homeownership.
- Boulder County Down Payment Assistance Program: This program offers a forgivable loan of up to 4% of the home’s purchase price. The loan is forgiven after 10 years of homeownership.
If you’re a first-time homebuyer in Colorado, down payment assistance programs can be an excellent resource to help make homeownership more affordable. By reducing the amount of money you need to put down on a home, these programs can make it easier to achieve your dream of owning a home. Be sure to explore all of your options and find the program that’s right for you! #DownPaymentAssistance #ColoradoHomebuyers #AffordableHomeownership #FirstTimeHomebuyer #HomeownershipPrograms
