CHAC Gives Away Money To Qualified First-Time Home Buyers For Down Payment Assistance

Colorado Housing Assistance Corporation, otherwise known as CHAC, offers down payment assistance to first-time home buyers who only have $1,000 to put down on a home. CHAC considers a first-time home buyer to be anybody who has not owned a home within the last three years. CHAC is a great alternative to CHFA, also known as the Colorado Housing and Finance Authority, since CHAC allows lenders to provide a FHA loan as the first loan and an option of no payments for five years or a 2% interest rate for thirty years on the second loan. These two options alone will give a borrower a lower monthly payment compared to CHFA along with more buying power to purchase a bigger home or a home in a nicer area.

To qualify for CHAC down payment assistance one must be buying a home in Denver County, Arapahoe County (must live and work here prior to closing), the City of Lakewood or Jefferson County (excluding Arvada and Westminster). If you are in one of the aforementioned counties CHAC will give up to $10,000 to you to help purchase your first home. CHAC will NOT provide assistance in Aurora, Douglas, or Adams County. If you are outside the already mentioned counties and in the state of Colorado CHAC will provide up to $5,000 repayable at $50 a month over 150 payments or 12.5 years for down payment assistance. If you are buying in one of the lendable counties you must meet CHACs income requirements to qualify for the program as well. If there is one person in the household the income limit is $42,550, two people in the household $48,650, three people $54,700, four people $60,800, five people $65,650, and six people $70,550. If you are buying in one of the qualified areas listed above and meet the income requirements you must attend a First time homebuyer class with CHAC which are held all over the Denver metro area that lasts four hours. Upon completion of this class you will receive a certificate that you are required to have in order to obtain your final approval on your CHAC loan. CHAC only requires $1,000 into the transaction so do not put more than $1,000 down for earnest money because you will not get it back at closing.

In my opinion, if you are short on cash for a down payment CHAC beats CHFA in a side-by-side comparison. For more information on CHAC loans, please visit www.coloradohousingassistance.org or to apply go to www.megastarhomeloans.com. For questions, feel free to email me at bkurpinsky@megastarfinancial.com or call me at (720) 529-1706.

Bobby Kurpinsky

Email: bkurpinsky@megastarfinancial.com  

 Web:  www.megastarhomeloans.com

Filed under: Uncategorized, CHAC, CHFA, FHA Loans

Little To No Down Payment Options Still Available To Buyers In Colorado

Believe it or not there are still many low down payment options to buyers in the state of Colorado. If you are a first time homebuyer, which means you havent owned a home in the past three years, and you want to take advantage of the free $8,000 the government is giving away via the $8,000 tax credit you must be under contract by April 30th and close on your home by June 30th. If you dont have much to put down on a home here are some options:

FHA loans offer a great way to get in to a home with only 3.5% for a down payment. If you dont have 3.5% down FHA allows a gift from a relative to cover the 3.5% down payment. You can pay the gift back to your relative in a matter of months when you receive the 8k tax credit back after you do you taxes or amend your previously filed 2009 taxes. FHA offers very low rates even with credit scores downward of 620 so if you have had some credit issues in the past FHA may be a viable option.

HUD homes are another way to get into a home with very little money down to buyers in the state of Colorado. HUD homes are foreclosed homes in which the former owner had an FHA loan. These loans only require the buyer to bring $100 to the table for a down payment. That is not a typo. A $100 is all HUD asks for. Some of these homes may look like Gary Busey after a long night of drinking but with some TLC they can definitely be called home and with very little money down.

CHFA, otherwise known as Colorado Housing Finance Authority, offers great options to buyers statewide in Colorado as well. CHFA allows buyers to only put $1000 down on any resale, bank owned, or home in short sale. CHFA has a number of different programs that allow a first mortgage up to 96.5% of the purchase price and a second mortgage covering the difference that can be used for down payment, closing costs, prepaids, and escrows. Both loans have the same interest rate and are amortized over 30 years. This low down payment option is a great way to utilize the states funds to your advantage. Income and purchase price limits do apply on this program in the State of Colorado so be sure to contact me with any questions regarding those limits. One more benefit to CHFA is that they will consider a loan for borrowers with credit scores down to 580 so depending on the issues you have with your credit CHFA may still be willing to work with you.

USDA, otherwise known as United States Department of Agriculture, have a fantastic program for people living in Rural areas of Colorado. The USDA program requires no money down on homes in rural areas and no monthly mortgage insurance which gives buyers in rural areas of Colorado much more buying power. There is an up front mortgage insurance premium of .5% rolled into the loan but no monthly mortgage insurance is required. If I lived in a rural area of Colorado I would be all over this loan like the Winter Olympics were with figure skating because I would be able to afford much more home with no down payment. Income and Purchase price limits do apply on this program so please contact me with any questions.

Bottom line is whether you are looking for a home in the Denver Metro area, the four corners of Colorado, up to Ft. Collins, back down to Pueblo or all the way in Grand Junction there are little to no money down programs a plenty just waiting for you to find a place to call home. I’m sure there are some questions for me out there so please dont hesitate to contact me.

Bobby Kurpinsky

Email: bkurpinsky@megastarfinancial.com  

 Web:  www.megastarhomeloans.com

 

Filed under: Uncategorized, CHFA, FHA Loans, Home Loans, HUD Homes, USDA