Payment Assistance

April 15th, 2009 Leave a comment Go to comments

There are several community programs designed to assist homebuyers by providing  education, financing and/or downpayment assistance.  These programs do have income limits and are intended for owner occupied homes.  

Colorado Housing and Finance Authority down payment assistance (CHFA)

Terms and Requirements:

  • Available for first time AND non-first time homebuyers
  • No purchase price limits
  • Owner occupied only; may not own other properties
  • Second loan amount up to 3% of the first loan amount
  • Interest rate on the 2nd will be the same as it is on the 1st mtg
  • Payment for 2nd will be amoritized over 30 years- this will make the payment very minimal
  • Borrower minimum financial contribution is $1,000 & no cash back at closing
  • Only need one year of tax returns now instead of three
  • Income limits for Denver Metro: 1 person- $71,800, 2 person- $82,500, 3+ person- $93,300
  • Minimum credit score- 580
  • 45% maximum debt to income ratio if manually underwritten- automated approval can go higher
  • Rates will be posted daily at 9:30 am MST- has been averaging 5.25% recently
  • Non traditional credit acceptable
  • First time buyers can use a large portion of their $8,000 tax credit to pay off the down payment loan from CHFA after they get their tax credit. This allows the buyer to get a deferred interest and payment loan for the down payment on an FHA Loan to buy the home and then pay that 2nd loan back once the tax credit has been received. 

 

 

 Visit CHFA’s web site at http://www.chfainfo.com/.

 

Please call me for specific information in regards to the CHFA programs as well as any other community payment assistance programs.