Are you thinking about buying a new construction home in Denver? Use this guide to help you discover different programs to help first-time homebuyers, essential workers, and low-to-medium-income borrowers with funds for downpayment and closing.
Who Qualifies as a First-Time Homebuyer in Denver?
The Colorado Housing and Finance Authority (CHFA) defines a first-time homebuyer as someone who has not owned a principal residence in the past three years. This includes people who have never owned a home, as well as people who have owned a home in the past but have not owned one for at least three years. First-time homebuyer status applies on an individual basis. Meaning if you’re married, and your spouse owned a home in the past three years, but you didn’t, you may still qualify as a first-time buyer.
Colorado Homeownership Assistance Programs
Colorado Housing and Finance Authority (CHFA)
Since its establishment in 1974, The Colorado Housing and Finance Authority (CHFA) has helped more than 147,000 Colorado homebuyers achieve homeownership through various home-buying assistance programs. These programs include down payment assistance, closing cost assistance, and mortgage credit certificates.
To qualify for a CHFA first-time homebuyer program, you must also meet the following requirements:
- Have a credit score of at least 620.
- Complete a CHFA-approved homebuyer education class.
- Meet income limits, which vary by location and household size.
- Make a minimum financial contribution of at least $1,000.
- Meet the qualification requirements of a CHFA participating lender.
Digging a bit deeper, the CHFA FirstStep Program is a popular option, offering up to 4% of the mortgage amount in down payment and closing cost assistance to low to moderate-income buyers. Similarly, the CHFA PartnerMatch Program works with participating lenders to provide similar assistance.
Remember, completing a CHFA-sponsored homebuyer education class is a prerequisite before you can close on one of their loans. For more detailed information on the various programs and their specific requirements, visit the CHFA website.
Colorado Housing Assistance Corporation (CHAC)
Established in 1982, CHAC stands as a beacon of hope, with a mission to make housing and successful homeownership accessible and affordable for low and moderate-income individuals in Colorado. It’s a non-profit passionately dedicated to forging and sustaining homeownership opportunities for families, averting the displacement of long-standing residents, and fostering stable neighborhoods.
CHAC has extended its helping hand to over 10,000 first-time homebuyers, aiding them with down payments and closing costs. Going above and beyond, CHAC provides mortgage assistance to cover the cash required at closing and manages loan servicing for loans originated by CHAC and other entities.
USDA Rural Development Guaranteed Loan Program
If you’re a low to moderate-income buyer in a rural area, the USDA Rural Development Guaranteed Loan Program could be your gateway to homeownership. By offering 100% financing, this program opens the door to homeownership benefits for residents in rural areas.
To leverage this opportunity, review the eligibility criteria, focusing on income levels and property locations, and for more insights and guidance, reach out to USDA-approved lenders or visit the official USDA website.
Denver Homeownership Assistance Programs
City programs often complement state programs, providing localized support and additional resources to meet the unique needs of homebuyers in Denver.
Denver Housing Authority (DHA)
DHA provides a comprehensive suite of services designed to equip prospective homebuyers with knowledge and financial support to buy a home. It also complements the broader support structures provided by state-level programs like CHFA.
Metro Denver Down Payment Assistance (metroDPA)
The metroDPA aids prospective homeowners with incomes up to $188,250 by offering a no-payment, zero-interest, forgivable assistance loan to help with down payments and closing costs, in conjunction with applying for a 30-year fixed-rate home loan. The program is available across the Front Range, with a minimum credit score requirement of 640.
Everyday Hero Housing Assistance Fund (EHHAF)
EHHAF, founded in 2011 and headquartered in Denver, Colorado, is dedicated to expanding housing opportunities for community workers such as teachers, medical professionals, police, firefighters, and social workers by gifting funds for closing costs.
Other Notable Programs in Denver Include:
- Community Development Corporation of the Rockies (CDCOR)
- Denver Metro Individual Development Account (IDA) Program
- Denver Metro Mortgage Assistance Plus Program
- Metro Mortgage Assistance Program
- Denver Metro Home Run Program
- Home Possible Denver Program
- Denver Attainable Homeownership Program
- City of Denver SmartRate Program
- City of Denver Below Market Interest Rate (BMIR) Program
Each of these programs has its own set of offerings and eligibility criteria, focusing on different aspects of homeownership assistance, such as down payment and closing cost help, reduced interest rates, and specialized assistance for specific demographics and neighborhoods in Denver.
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