First Time Home Buyers
First Time Home Buyers

First-Time Home Buyer Programs in Colorado

Buying a home for the first time can be a daunting task, especially when considering the financial aspects. However, for residents of Colorado, there are numerous programs available to assist first-time home buyers. These programs offer help with down payments, closing costs, and more. In some instances, this is free money that shouldn’t be passed up! The grant awards can be in the thousands of dollars. It will be well worth your time to educate yourself about the programs that are available to you as a resident of Colorado.

Colorado Housing Housing and Finance Authority (CHFA)

The Colorado Housing Housing and Finance Authority (CHFA) offers a Downpayment Assistance Program in the form of a tax credit for eligible home buyers who meet specific moderate income limits to help with down payment and/or closing costs. CHFA’s entire organization is focused on helping people and businesses succeed. They’ve seen the positive effects of homeownership and business expansion reverberate throughout communities. One success leads to another, as families become financially stable and companies add more jobs. For CHFA, every happy ending is really a new beginning. CHFA also offers a tax credit program, the CHFA Mortgage Credit Certificate (CHFA MCC), which is like getting up to a 50 percent discount off your mortgage interest rate.

Other Grants in Colorado

In addition to the grant programs described above, the U.S. Department of Housing and Urban Development provides home buyer assistance and grants in every state. There are multiple grant programs designed specifically for people that meet certain requirements, such as grants for people with disabilities so they can continue to live independently at home. It is worth visiting HUD’s website to see what assistance is currently available.

Local Colorado First Time Homeowner Programs:

There are also local programs available to assist first-time home buyers. Here are a few examples:

  • Arapahoe County Home Ownership Program (HOP): This program can help you pay for the down payment, closing costs and prepaid/escrows up to $10,000. This is called ‘acquisition assistance’ and is in the form of a low interest rate second mortgage.

  • Aurora Home Ownership Assistance Program (HOAP): Aurora’s HOAP offers a variety of housing-related counseling services as well as educational seminars and financial assistance to help qualified, first-time homebuyers.

  • Boulder County Down Payment Assistance Program: This program provides down payment and closing cost assistance to first-time homebuyers purchasing a home in Boulder County (outside of the city limits of Boulder). Up to 8.5% of the purchase price (maximum $15,000) may be borrowed.

  • Colorado Housing Assistance Corporation Creating Affordability Now 65% to 80% AMI Down Payment Program (CAN): This loan program offers financial assistance to help eligible, qualified first-time homebuyers cover their down payment and closing costs.

  • Colorado Springs Affordable Homeownership Program (AHP): This program offers a variety of services to assist with affordable housing, including home buyer assistance.

  • Douglas County Housing Partnership Downpayment Assistance Program: The down payment assistance is in the form of a second mortgage. Borrowers will receive $15,000 and the funds may only be used for down payment, no closing cost assistance.

  • Eagle County Downpayment Assistance Program (DAP): This program offers down payment and closing cost assistance to first-time homebuyers purchasing a home in Eagle County.

  • Fort Collins Home Buyer Grants Program: The City of Fort Collins provides loans to income-eligible households to cover a portion of the required down payment and closing costs for buyers who have not been on title to a home for the past three years.

  • Jefferson County Stride Home Ownership Program (HOP): This program offers assistance to first-time homebuyers in Jefferson County.

  • Larimer County Home Ownership Program (LHOP): The LHOP program has funds for properties purchased in Larimer County. The max loan amount remains at $10,000 for those areas.

  • Longmont/Boulder County Down Payment Assistance Program (DAP): This program provides down payment and closing cost assistance to first-time homebuyers purchasing a home in Boulder County (outside of the city limits of Boulder).

  • Pueblo County HOME Downpayment Assistance Program (HDAP): Eligible borrowers will receive a deferred forgivable loan with a maximum amount of $5,000, only if needed. These funds can be applied toward the payment of usual and customary closing costs and/or matching up to 50% of the required down payment.

  • Summit County Down Payment Assistance Program (DPA): Any home located within Summit County; new construction or existing. Present average price for a home in Summit County is over $417,000. Loan amount is based on borrower’s need and availability of down payment assistance.

Education and Counseling: Many of these programs require or strongly recommend homebuyer education or counseling. This is a valuable resource that can help you understand the home buying process, improve your financial management skills, and make informed decisions.

Eligibility Requirements: Each program has its own set of eligibility requirements, which may include income limits, purchase price limits, and requirements to be a first-time homebuyer. Some programs may also have specific requirements related to the location of the property or the borrower’s employment.

    1. Loan Terms: The terms of the assistance provided by these programs can vary. Some programs provide grants that do not need to be repaid, while others provide loans that may be interest-free, low-interest, or deferred until the home is sold or refinanced.

    2. Availability of Funds: The availability of funds can vary for these programs. Some programs may have a limited amount of funds each year, so it’s important to apply early.

    3. Working with a Lender: When using these programs, you’ll typically need to work with a lender who is familiar with the program and its requirements. The lender can help you understand the application process and ensure that you meet all of the program’s requirements.

    4. Long-term Considerations: While these programs can provide valuable assistance, it’s also important to consider the long-term costs of homeownership, including maintenance, repairs, property taxes, and home insurance.

    Remember, buying a home is a significant financial decision, and it’s important to do your research and understand all of your options. It’s always a good idea to consult with a real estate professional or financial advisor before making any major decisions.

These are just a few of the many programs available to first-time home buyers in Colorado. Each program has its own set of requirements and benefits, so it’s important to research each one thoroughly to determine which is the best fit for your situation. Remember, buying a home is a big decision, but with the right resources and support, it can also be an exciting journey towards achieving your dream of homeownership.