What is the Down Payment Assistance Program? The Boulder County Down Payment Assistance Program provides down payment and closing cost assistance to first-time home buyers purchasing a home in Boulder County (outside of the city limits of Boulder). Up to 8.5% of the purchase price may be borrowed.
Loan Terms: For households earning between 51-80% Area Median Income (AMI): 3% interest loan amortized over 10 years. For households earning below 50% Area Median Income (AMI): Deferred loan. No monthly payments, and 4% simple interest is charged for the first 10 years. Payment (principal plus interest) is due at sale, change of ownership, or refinance of property.Application Process:
The application process for the Boulder County Down Payment Assistance Program is a two-part process. The first part determines the eligibility of the homebuyer. The second part determines whether the home is eligible to be purchased with the use of funds from the Program.
Homebuyers are strongly encouraged to not sign a purchase contract until they have completed the full application process and are determined eligible for the Program.
Even if you are determined eligible and find a home that you like, that home may not be eligible to be purchased using the Boulder County/Longmont Down Payment Assistance Program.
Please read the below requirements to learn both your requirements and property requirements for the Program. Contact Molly McElroy with any questions.
- Gross household income must be at or below 80% area median income for Boulder County (see Income and Asset Limits page). Household size includes everyone who will be living in the home. Household income will include all income regardless of who may be listed on the title and/or mortgage.
- Meet asset requirements
- Be a first-time home buyer (have not owned a home for the past three years). Exceptions are made for those who have been divorced within the past 3 years.
- Complete a Home Ownership Training Course (course must be completed prior to signing a purchase contract)
- Qualify to obtain a first mortgage large enough to afford the property (co-borrowers permitted). The City of Longmont does not accept subprime, interest-only or adjustable-rate mortgages.
- Total combined housing debt (first mortgage and all subordinate financing) may not be more than 100% of the value of the property at the time of closing. This may require the homebuyer to contribute more than the minimum required contribution (see below)
- Meet with the Housing Counselor for a one-on-one budget session
- Contribute a minimum of $2,000, or 1% of purchase price (whichever is greater) of own funds (lenders and/or developments may require more).
- Occupy dwelling unit being purchased as sole residence and not own other habitable property
- All household members must document lawful residency and provide an approved form of identification.
- Copies of Social Security cards for all household members over the age of six (6) must be submitted prior to closing.
- The home being purchased must be in Boulder County, outside the City of Boulder limits.
- The home being purchased must be purchased as the sole residence of the homebuyer and the homebuyer may not own any other habitable property.
- Purchase price and/or appraised value may not exceed $322,000.
- The home being purchased must be owner-occupied or vacant at the time the purchase contract is signed. Down Payment Assistance Funds cannot be used to purchase a home that will displace any tenants. If the homebuyer is purchasing the home that they currently rent, that property is eligible for the Program.
- Homes being purchased must pass a third party inspection. Any health and safety concerns and/or code violations, as determined by the City, must be fixed and documentation provided to the City prior to closing, review the Property Inspection Requirements [PDF] for more details. Once an applicant's final eligibility has been determined, the City will schedule an inspection. Please note that for households under contract, the program cannot guarantee that contract due dates will be met.
- Homes built before 1978 must have a Visual Lead Based Paint Assessment completed prior to closing. If there is any chipped, pealing, flaking or otherwise deteriorating paint, it must be tested for lead based paint, and if necessary, abated prior to closing.
- If the home being purchased is located in a flood zone, flood insurance must be purchased prior to closing and maintained for the life and the loan.
Boulder County Common Application Packet [PDF] May be used to apply for Boulder County Down Payment Assistance Program, and any and all housing programs including the City of Longmont Affordable Housing Programs, City of Boulder, and Thistle Community Housing. Please download application packet, complete all forms and submit with all required documentation, along with the application fee to: Molly McElroy, City of Longmont, CDBG Office, 350 Kimbark St., Longmont, CO 80501.
Incomplete applications cannot be fully processed and will delay determining your eligibility for the program.