Home Buyer Assistance Programs in Denver Metro

Denver Metro Home Buyer Assistance Programs, Part 1:  CHFA

family 5

Did you know that Denver area residents might be eligible for down payment assistance when they buy a home?  The Denver metro area has several different programs available…. which could make enough of a difference for some of you to take the plunge and enjoy the exciting adventure of home ownership!

Here are the details of some of the current home buyer assistance programs.   All of these can be used in conjunction with whatever loan type you qualify for (Conventional, FHA, FHA 203K, VA, USDA, refinance loans, etc).  The homes that are purchased must be used as the primary residence AND the owner may not own any other properties. The interest rates and fees for CHFA loans are set by CHFA and will not vary from lender to lender.  The “plus” CHFA programs, which include a loan amount of up to 3% for the down payment will mirror the rate and terms of the first loan on the property.

CHFA:  Colorado Housing & Finance Authority

CHFA is an investor and a servicer, meaning that they do NOT sell their loans.   CHFA can be used for first time home buyers or multiple time home buyers (as long as they do not own a different property when they make their current purchase).  CHFA requires buyers to invest a minimum of $1000 of their own money into the transaction, and this amount cannot be gifted. Any amount that the buyer needs to bring to the closing table in excess of the first $1000 may be gifted if that option is available for the buyer.  CHFA allows credit scores as low as 580, so this can be a great opportunity for people with a lower FICO score to get into a home of their own.  CHFA will give the buyer a second mortgage in the amount of 3% of the first mortgage loan amount to help to cover the down payment.  The buyer will be required to cover any down payment amount in excess of this 3% and associated closing costs.  Home buyers can also use CHFA for a multi-unit residential property of up to 4 units as long as the buyer lives in one of the units.

There are 4 different Denver Metro CHFA programs:  CHFA Firststep, CHFA Firststep Plus, CHFA HomeOpener, & CHFA HomeOpener Plus.   The “Plus” programs add a second mortgage to the transaction.  The FirstStep programs are appropriately named for first time home buyers, which is defined as anyone who has not owned a home within the last 3 years.  Household income (this includes ALL sources of income coming from people living in the house, not just the borrower’s income) limits apply, but are pretty generous.  For households with 1-2 people, the maximum income allowed to qualify for this program is $75,900 and for 3+ people, it is $87,200.  There is a maximum purchase price of $365,600.

The CHFA HomeOpener program is available to all buyers, not just first time home buyers.  Household income restrictions are a little more liberal at $87,200 for a 1-2 person household and $98,600 for a  3+ person household.  The loan limit is $417,000.

Get pre-qualified for your loan today!

Stay tuned for part 2 of this blog, which will cover the basics of the assistance that local housing authorities offer to first time buyers, and part 3 of this blog, which will cover CHAC assistance.

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 March 15, 2011.   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!

Incoming search terms:

  • chfa denver
  • first time home buyers classes denver metro

Leave a Reply

Your email address will not be published. Required fields are marked *