COLORADO FIRST TIME HOMEBUYER PROGRAMS & DOWN PAYMENT ASSISTANCE GRANTS 
UPDATED: March 18, 2019
FOR THE FIRST TIME HOME BUYER IN COLORADO...OR THOSE THAT DO NOT CURRENTLY OWN A HOME
If you are a current renter and think that buying a home is financially out of reach, you aren’t alone. However, the truth is that there are several programs and incentives available for the Colorado first-time homebuyer (and those that have previously owned a home) that make buying a home not only possible but, in most cases, less expensive than renting.
Two of the most common myths around buying a home is that you need excellent credit and that there is a large down payment involved. Here, we will dispel these myths by showing you the down payment grants and mortgage assistance programs available for first-time homebuyers in Colorado.
Many people don't know about these programs and therefore they do not even consider homes for sale as a viable option. This is why we always recommend talking to a qualified and trustworthy LOCAL lender that has access to these programs...even if you've looked at the initial eligibility requirements and don't think you qualify. The right local lender will know about the intricacies needed to place today's home buyer with the right loan program.
It is important to note that many of these Down Payment Grants and First Time Homebuyer Programs are available to those that have previously owned a home or even currently own a home.
THE COLORADO HOUSING AND FINANCE AUTHORITY (CHFA) PROGRAMS
First time home buyers, previous homeowners, and qualified veterans
A 30-year, fixed rate mortgage that can be paired with a 4% downpayment grant or a 5% zero interest second mortgage (silent second) that can help with down payments, closing costs and more
NOTE: Effective April 1, 2019, CHFA will provide a 3% down payment grant or a 4% zero interest second mortgage (silent second).
CHFA offers numerous financing programs and opportunities to accommodate an array of today's home buyers. To be eligible to receive financing, borrowers must have a credit history and take a home buyer education course (in person or available online).
FHA METRO MORTGAGE ASSISTANCE PLUS PROGRAM
First time home buyers and low and moderate income families
Down payment assistance and possible eligibility for a grant that will cover up to 4% of a borrower’s 30-year, fixed rate home loan
Denver, Arvada, Aurora, Bennett, Boulder, Brighton, Broomfield, Castle Rock, Centennial, Commerce City, Dacono, Edgewater, Englewood, Firestone, Golden, Lakewood, Littleton, Parker, Sheridan, Thornton, Westminster and Wheat Ridge
0.5% of total mortgage
Borrowers should have a suggested debt-to-income ratio of 45% or less and the home purchased must be a single-family detached home, duplex, condo or townhome.
EL PASO COUNTY TURNKEY BOND PROGRAM
First time home buyers ("first time home buyers" is defined as someone that has not owned a home in the last three years)
A 30-year mortgage loan from participating lenders with a down payment grant of 3% to 4% of the mortgage, with no repayment, needed
El Paso County
0 to .05% of the sales price
Most participating lenders are found locally in El Paso County, Colorado.
NEWSED Down Payment Assistance
First time home buyers
Applicants can receive up to $8,000 for down payment, closing costs, mortgage principal reduction and interest buy down in the form of a second mortgage loan.
The Denver Metro area
Varies based on the first underlying loan terms
Borrowers must complete a first-time home buyer course, conduct a property inspection and purchase a home with a purchase price not exceeding 95% of the median local purchase price.
Colorado Housing Assistance Corporation (CHAC) First-Time Homebuyer Loan
First time home buyers
Buyers are eligible for low-interest, flexible loan terms that provide a second mortgage for down payment and closing cost assistance throughout Colorado.
$1,000 or $750, if in a disability program
CHAC assistance must be submitted by the borrower’s first lender after they have completed a first-time home buyer course. If the first mortgage is paid off, the CHAC loan will be due in full.
Borrowers must complete a first-time homebuyer course, conduct a property inspection and purchase a home with a purchase price not exceeding 95% of the median local purchase price.
VA Home Loan
First time and non-first time homebuyers that are active duty military members or veterans
Provides 100% financing, eliminating the need for a down payment
580, but most lenders require a 620
U.S. Department of Agriculture (USDA) Rural Development Loan Guarantee
First time and non-first time home buyers purchasing in a designated rural area
Provides 100% financing, eliminating the need for a down payment
Nationwide, in designated rural areas
To be eligible, borrowers must not have been previously suspended from participation in federal programs and should work with a lender to ensure that their desired address is in the designated area.
Taking Advantage Of A First Time Homebuyer Program
After looking at these options for Colorado first time homebuyers, you can see that homeownership may be within reach... more so than what you may have originally thought.
IMPORTANT: As we mentioned above, don't disqualify yourself from a program that you are interested in just because you aren't sure you meet the requirements. If you have specific questions or want more details, you can always inquire below.
If you are buying your first home or making your next home purchase, it's likely that there are more options available to you than you may know about. However, not all lenders have access to these programs (especially national megabanks and online lenders), so you will want to make sure the lender you do speak with has access to the programs mentioned above.
"so you will want to make sure the lender you do speak with has access to these programs"
Likewise, if you have been speaking to a financial organization and they haven't mentioned these incredible financing options it is likely they do not offer them. If that is the case, try speaking with a local Realtor ® who can provide you with local lender recommendations that do offer these down payment grants and mortgage assistance programs.
Your Realtor can be a valuable resource, not just for houses for Sale in the Colorado Springs and Denver area, but to also introduce you to the right lender that has access to these programs.
THE NEXT STEPS TO OWNING YOUR HOME
GET YOUR QUESTIONS ANSWERED
It is exciting to know that you have options and that homeownership is within reach but it is understandable to have additional questions about these programs, the home buying process or would like to see how to best accommodate your timeframe and goals. If that is the case, the first step is to get your questions answered. If you need assistance with this, contact us below.
KNOW EXACTLY WHAT YOU COULD QUALIFY FOR & WHAT YOUR PAYMENTS WOULD BE
The opportunity these programs offer is incredible but the next obvious question is, 'how much can I qualify for with these programs and what would my payments be?' To answer that, and if you like, we will connect you with a Lender that specializes in the first time home buyer programs listed above. This way you will know exactly what you qualify for, what your payment would be, and what funds if any, would be needed to buy your home.
FIND YOUR PERFECT HOME
The Colorado market is hot and can be competitive, so make sure you are in front of the homes first. To make sure you are in front of every home listed for sale before others, we can set up a private home search for you in the area you prefer that is directly connected to the MLS and that updates every 15 minutes. This way you can be assured you are viewing 100% of the homes listed for sale without having to worry about your information being sold or being overwhelmed with calls and emails.
ENJOY HOMEOWNERSHIP & THE EXTRA PEACE OF MIND WITH A FREE HOME WARRANTY
Relax and enjoy your new home without having to worry about any unexpected repairs. Ashford Realty Group provides a Free 1 Year Home Warranty to all home buyer clients they assist in finding and buying their home. *
INTERESTED IN GETTING STARTED & OWNING A HOME BUT STILL HAVE RESERVATIONS
This is more common than you think. Most first time home buyers are reserved in reaching out for numerous reasons. This could be because they think everything needs to be perfect before they talk with someone, they are worried about being told 'no,' worried they may ask a silly question or not know the right questions to ask, worried about a set back from their past will prevent them from qualifying, think they need to be an expert in home buying, and as mentioned above, think they need excellent credit or a large down payment. All of these reasons are understandable but they tend to keep most aspiring homeowners in the rental market, paying towards someone else's mortgage instead of building equity in their own home.
We would encourage anyone interested in owning their own home, be it now or in the future, to talk with someone and learn their options. It is highly likely one could talk with a qualified Realtor and Lender and be looking at homes as soon as that afternoon or the next day.
CONTACT US BELOW IF YOU HAVE ANY QUESTIONS OR INTERESTED IN LEARNING MORE
* The 1 year home warranty provided by Ashford Realty Group only applies when an Ashford Realty Group Realtor® assists the home buyer client in the purchase of their home. When working with a Realtor outside of Ashford Realty Group, regardless if they referred by Ashford Realty Group or not, it is at the discretion of the Realtor representing the home buyer as to whether they will provide a home warranty. Therefore, when working with a realtor outside of Ashford Realty Group the home warranty is not guaranteed.