The Colorado Housing Authority Corporation (CHAC) has 3 different programs available for buyers depending on where the buyer is making their purchase. The first program is for home purchases in the city and county of Denver and Jefferson County (but not Arvada & Westminster). It requires a minimum investment of $1000 from the buyer, and this amount cannot be gifted. It gives the buyer a second loan of 6% of the purchase price or $10,000, whichever is less. There are 2 repayment options. The buyer can start paying the loan back immediately at an interest rate of 2% and a 30 year term. Or they can have their payments and interest deferred for 5 years, after which the interest is 6% and the loan term is 25 years. Payments include a $5 monthly servicing fee.
CHAC’s second program is a statewide program except for the following areas: Adams county, Boulder county, Douglas County, and the cities of Aurora, Arvada and Westminster. This program requires a $1000 minimum investment by the buyer of their own funds. The maximum loan amount is $5000. Buyers will pay $50 per month at a rate of 5%. Payments include a $5 monthly servicing fee.
CHAC’s third program is also statewide and is designed for Persons with Disabilities or a Buyer who has a child with a Permanent disability. Again, there is a $1000 minimum investment from the buyer’s own funds. The maximum loan amount is $7500. The loan is deferred for 30 years. Interest is accruing at a rate of 1.5%. Note that CHAC does not provide assistance for properties that have been tenant occupied.
The difficult part about writing a blog of this nature is that the information changes very quickly, as each program’s guidelines are dictated by a different housing authority. This information is correct, as of July 2013. Want to know the latest? Give me a call at 303-378-9333 or send me an email and I’d be happy to answer any of your questions!