In particular, Colorado Housing and Finance Authority (CHFA), allows first-time buyers to access a variety of programs such as down payment assistance, low interest loans, and loan forgiveness.
CHFA provides two primary ways of accessing assistance. The first is by taking part in the CHFA Preferred Plus loan program. This program offers a different type of mortgage loan for first-time homebuyers. It features a low interest rate, no points or fees, and allows up to 97% financing of the purchase price of the home. Additionally, there is an option to add 3% of down payment assistance, which is interest free and forgivable after five years.
The second way of accessing assistance through CHFA is through its down-payment assistance program. This program provides a two-percent grant that buyers can put toward the purchase of their home, up to $5,000. With this program, if buyers sell or refinance their home within the first five years, they may be required to repay a portion of the grant.
In addition to CHFA, Colorado also has other state-funded programs specifically designed to help first-time buyers. These include the Colorado Homeownership Opportunity Grant and the Colorado First-Time Homebuyer Savings Accounts Program. The Colorado Homeownership Opportunity Grant provides a one-time grant of up to $6,000 to help cover closing costs or down payments for those who meet the eligibility requirements. The Colorado First-Time Homebuyer Savings Accounts Program allows first-time buyers to save money towards the purchase of a home in a tax-free account.
In conclusion, Colorado-based first-time homebuyers can find financial assistance through a number of state-funded programs and grants. The Colorado Housing and Finance Authority (CHFA) offers interest-free grants as well as low-interest loans. There are also other state-funded programs such as the Colorado Homeownership Opportunity Grant and the Colorado First-Time Homebuyer Savings Accounts Program to help buyers cover down payments and closing costs. Although each program has its own set of eligibility requirements, these funds provide a valuable opportunity for first-time buyers to purchase their first home in Colorado.
This article was contributed on Nov 28, 2023
