Tag Archives: Colorado Housing Finance Authority

First Time Buyers Look At This…

First time home buyers in the Denver real estate market often are well-qualified to purchase a home, but they lack the initial funds to make the down-payment.

Now, with the help of CHFA – Colorado Housing Finance Authority, there is a program they can use to purchase a Denver home!

The JUMPSTART Program allows buyers to borrow (from CHFA) their downpayment equal to 3.5% to purchase a home.  The loan must be paid off in full by February 1, 2011 in order to have it interest free.  If not paid off by then CHFA will charge 8% interest and the loan has a payoff of 10 years.

So, first time buyers as long as you qualify for the TAX CREDIT you can borrow the funds for your downpayment from CHFA, purchase and close on a home. When your TAX CREDIT comes in you payoff your interest free loan from CHFA and be a homeowner!

CHFA does have some stipulations.  They encourage responsible  home ownership, so buyers are required to take a Home Owner Class either in person or online.  Additionally the buyer is required to have at least $1o00 of their own money into the transaction.

For information about this home loan program or how to buy a home in Colorado, please feel free to visit CHFA’s Website or give me a call.  As always I welcome your call!

First time home buyer assistance

First Time Home Buyers in Colorado have many benefits to assist them in purchasing a home. Counties in Colorado offer a wide assortment of programs to assist not just first time buyers, but all home buyers in learning more about the process of purchasing and maintaining a home.

Understanding the process helps future home buyers make better decisions. Once they understand the consequences of making a wrong decision they can avoid doing so. Local governments have prepared educational classes so successful that discounts are given to participants, because they have proven to be more responsible in homeownership.

Rewards for taking the education course comes in a variety of forms:

  • lower interest rate
  • grants for closing costs
  • down payment assistance in the form of a “silent” loan
  • discounts on PMI are a few incentives.

If you are looking to purchase a home, I suggest you investigate your eligibility for one of these programs. Each county and some city programs are offered throughout the State of Colorado. Check into the program in the county/city where you are interested in purchasing a home.

City Programs:

  • Aurora – Homeownership Assistance Program or (303) 739-7900
  • Commerce City – Commerce City Housing Authority or call (303) 289-3698
  • Delta – West Central Housing Development – Down payment assistance (970) 874-8204, ext. 24
  • Denver – Del Norte’s Homeownership Program or (303) 477-4774, ext. 18
  • Greeley – High Plains Housing Development Corp. (970) 346-7660, ext. 6540
  • Wheat Ridge – WRHA Home Ownership Program (303) 422-8600

Statewide Programs:

County Programs:

  • Adams County Housing AuthorityHomeownership or Program HOTLINE (303) 227-2089
  • Weld County – High Plains Housing Development Corp. (970) 346-7660, ext. 6540
  • Bent, Crowley and Otero countiesTri-County Housing – Downpayment and closing cost assistance, 2nd mortgages for repairs to a home being purchased, and Home Ownership Counseling (719) 263-5168
  • Cheyenne, Elbert, Kit Carson and Lincoln countiesPrairie Development Corp. Down payment assistance program or (719) 348-5562 or (800) 825-0208
  • Logan, Morgan, Phillips, Sedgewick, Yuma and Washington counties – Northeast Colorado Housing, Inc. in Fort Morgan – Down payment assistance program call (970) 542-0955

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Colorado Housing Finance Authority

Homebuyers are finding their pot of gold at CHFA

Industry news in the finance sector has been scary to say the least. Home buyers are finding themselves with less and less options each passing day. One steady financing resource for purchase funds in Colorado is CHFA.

I received an excellent email from Mark Afman a Senior Loan Consultant with Universal Lending explaining CHFA’s offerings. Mark has given me permission to post his email:

CHFA is a non-profit investor that sells tax free municipal bonds to fund their loans and is there specifically to help low to middle income buyers into homes. They allow FHA and conforming loan programs to be funded through CHFA. The CHFA program is the antidote for the predatory lending practices that are now under so much scrutiny. CHFA sets the Interest rate so a lender could not charge a higher interest rate even if they wanted to and CHFA caps the closing fees that a lender can charge so CHFA is considered a loan program that protects home buyers.

There are 4 programs that CHFA offers. All programs require the buyer to attend a CHFA approved, free first time buyers education course.

1) MRB First Step: This is the program for first time buyers (someone that has not had an ownership interest in a home for at least three years). This is a 30 year fixed loan. There are income limits, for example a 2 person family can not make more then $71,400 a year. There are also purchase limits, for example in the Denver Metro area, the limit is $365,100. CHFA also offers a 3% “Silent 2nd” for down payment assistance. This 2nd mortgage has no interest or payments due for the life of the loan but is is a lien against the property so when the buyer is done with it they have to give it back. So if the buyer sells the property, refinances the mortgage, or lives there for 30 years, the original 3% must be paid back to CHFA. This effectively offers the buyer 100% financing. However, if a buyer uses the CHFA 2nd mortgage for down payment assistance, the interest rate on the 1st mortgage will be 1/4% higher then if they bring their own 3% down payment. The buyer is required to put in a minimum of $1,000 in to the transaction. The interest rates are set by CHFA at an affordable level usually below the normal prevailing market rates. They also cap the amount of closing costs a lender can charge at $600 plus a 1% origination fee. For current rates and information on the training, etc. go to www.CHFAinfo.com

2) Taxable Home Opener: This program is very similar to the MRB First Step program but it allows for non-first time buyers to use the CHFA advantages. The income limits are higher, for example, a 2 person household needs to be under $82,100 and there are no purchase limitations. The rates are about 3/8% higher on the Taxable Home Opener program then the MRB First Step rates but it offers a safe 100% financing option to those that do not have a down payment saved up.

3) HomeStretch: This is a new CHFA program for buyers that may need help keeping their payments lower. It is a 40 year fixed loan and has lender paid mortgage insurance, unlike the other 2 programs. The rates are higher by about 7/8% but with the combination of a longer term and no MI, the payments are generally lower. This program also allows for non-first time buyers to use it. It can also be used for refinancing. This program also allows for Involuntary Unemployment Insurance which pays up to $1500 a month against the mortgage payment for up to 6 months.

4) Home Access: This program is specifically for buyers that have a disability or the parents of a child with a disability. This is for low income, first time buyers. You can find more information at CHFA.

Looking to Denver real estate? Call me! (303-589-2022) Need to finance a home? Call Mark Afman 303-759-7392.

Thanks Mark! We all appreciate your sharing this excellent advice.