Colorado Housing and Finance Authority (CHFA) announced this week that it is now offering its down payment assistance for homebuyers in the form of a non-repayable grant. The program will provide qualified borrowers with down payment and closing-cost assistance for up to 5 percent of the purchase price of a home.With Colorado home prices having increased by six percent in 2014 according to the Colorado Association of REALTORS®, CHFA’s new grant is expected to provide greater access to homeownership to those who have avoided or been unable to enter the home purchase market in Colorado. All qualifying home mortgage borrowers who make loan reservations on or after February 2, 2015, can receive the grant, which can total up to three percent of the loan amount.
“Making homeownership affordable is key to CHFA’s mission, and we believe our new grant program will positively encourage those who have been unable or unwilling to purchase a home due to the down payment barrier,” said Cris White, CHFA executive director and CEO. “Increasing responsible homeownership in Colorado strengthens our local communities, and CHFA will continue to provide options to enhance affordability for borrowers.”
CHFA’s new grant is available to either first-time or non-first-time homebuyers under most of its 30-year, fixed rate, first mortgage loan programs. Borrowers who meet income requirements, have a mid-credit score of 620 or higher, contribute $1,000 toward the transaction, and complete a CHFA homebuyer education class (online or in-person) prior to loan closing may be eligible.
CHFA has been offering down payment assistance in various forms since 1991, and this is the first time in more than 10 years CHFA has offered a grant as part of its loan programs for homebuyers. The CHFA grant program may be used toward the down payment, closing costs and/or other fees.
CHFA’s loan programs are available through our statewide network of participating lenders. To take advantage of the new CHFA down payment assistant grant, find a CHFA participating lender by visiting chfainfo.com.
Source: Colorado Association of Realtors