Colorado is a beautiful state with picturesque mountains, wonderful national parks, vibrant cities, and more! However, Colorado is also listed as one of the states with the highest average mortgage debt and median housing costs. This can make home ownership in Colorado difficult.
Luckily, local and national programs exist that offer down payment assistance and grants to qualified applicants. The Denver Office of Economic Development and the Economic Development Department of El Paso County are two organizations that offer such programs.
If you're thinking about purchasing a home in Colorado, you may have options to help with the down payment or closing costs. Read below to learn more about any program and see if it can help with your home purchase!
Created by the Economic Development Department of El Paso County, the Turnkey Mortgage Program offers fixed-rate 30 year mortgages and down payment assistance of up to 4% of the loan amount to eligible applicants. This assistance is a grant that does not need to be repaid.
In order to be eligible, applicants must be purchasing a home in El Paso County, and must not have an annual household income of more than $108,920. The maximum allowed debt-to-income ratio is 45%, and the minimum credit score is 640.
If the borrower has an FHA loan and a credit score less than 659 but greater than 640, they can receive a 3% grant.
If the borrower has a Freddie Mac HFA Advantage Conventional Loan, they will be required to complete a homebuyer education class.
The Metro Mortgage Assistance Plus Program is offered by the Denver Office of Economic Development.
Applicants who borrow from a qualifying lender may also be able to receive down payment and closing cost assistance for up to 4% of the loan. This assistance is offered in the form of a grant.
In order to be eligible, applicants must have a minimum credit score of 640, and a debt-to-income ratio of not more than 45%. Applicants must also finish an approved homebuyer education class. The annual household income limits for the program for 2020 are $95,880 for a 1 or 2 person household, and $111,860 for a 3 or more person household. The house being purchased using the program must serve as the applicant’s primary residence. Only certain areas of Colorado offer this program. The consumer should verify that they can utilize this program for the area they are looking to purchase in. Single-family, detached homes, duplexes, condominiums, and townhomes are all eligible for this program.