5 Things to Know About Down Payment Assistance Programs in Colorado
Top 5 Things to Know about Down Payment Assistance Programs
There are many great down payment assistance programs available here in Colorado, so great that some skeptics out there may say, "What's the catch?" That being said, our highly experienced mortgage team here at Popish Mortgage has come up with the top 5 things you should know about down payment assistance programs here in Colorado.
1. Down payment assistance has income limits: All of the down payment assistance organizations in operation today have some sort of income restriction based on HUD Area Median Income limits. Some are very generous while others are somewhat restrictive and this is not just based on borrower income. These organizations look at total household income so that roommate living with you, for example, can affect your ability to qualify for particular assistance programs. Please note that these organizations will calculate your income very differently than your lender.
2. Location, location, location! The various housing authorities and assistance organizations are limited, in many cases, based on city, county, or municipality. Where you are wanting to purchase; or where you currently live, can limit your eligibility for certain programs.
3. Are you considered a "First Time Home Buyer"? The IRS definition of a first time home buyer is an individual that has not had any ownership in real estate within the last three years. Many of these programs are restricted to first time home buyers as defined by the IRS. (not just someone that has never owned a home!)
4. Work with a lender that knows the "ins & outs" of these programs! They are not all the same and they do have little nuances that can make closing a deal difficult if your lender is not up-to-date on all aspects associated with each program.
5. Homebuyer Education is required! All down payment assistance programs require the borrower to take homebuyer education. Some allow online classes while other require in-person education. Either way, this is a requirement to all down payment assistance programs.
If you would like to learn more about all of the down payment assistance programs available to Colorado residents, please fill out this form and let Popish Mortgage answer your questions. You can also learn about all the loan programs we offer here.
We have helped many people into the homes of their dreams, and we would love to help you, too!