What is the source of funding for the Boulder County Down Payment Assistance Program?
Funding originally came from the Community Development Block Grant (CDBG) and HOME Programs, federally funded grants to the City of Longmont. Currently, the main source of funding for the loan comes from program income. When homeowners with down payment assistance loans pay back their loan, that money is re-lent to other first-time buyers. The City also receives periodic funding from the Colorado Division of Housing as well as local City funding from the CDBG and HOME Programs.
Can homes purchased through the Boulder County Down Payment Assistance Program be rented?
While a household has a down payment assistance loan with the City, the home cannot be rented out. The homeowner may have roommates but the property must be the homeowner’s primary residence. The property may be rented out once the entire down payment assistance loan has been repaid. This is only applicable if the owner purchased a market rate home and does not apply if the owner purchased a home through the Community Housing Program.
How much money does a homebuyer have to contribute?
As of Feb. 1, 2009, all homebuyers are required to contribute at least $2,000 of their own funds towards the purchase of a home. This may be in the form of earnest money or for any costs paid for outside of closing. A homebuyer may not receive any cash back at closing.
Are non-occupying co-borrowers allowed for the Boulder County Down Payment Assistance Program?
Yes. Non-occupying co-borrowers are allowed. The co-borrower must provide the Program with a letter stating that they will not be living in the house and their income will not be contributing to the house payments. A co-borrower will be listed on the City’s deed of trust and promissory note for the loan and will be legally responsible for the repayment of the down payment assistance loan.
If more than one person will be listed on the mortgage and/or title do they all need to be first-time buyers?
Yes. Anyone who will be listed on the mortgage and title of the home must be a first-time buyer in order for the household to qualify, unless they are a non-occupying co-borrower. Anyone listed on the mortgage and/or title of a home will be listed on the City’s deed of trust and promissory note for the loan and will be legally responsible for the repayment of the down payment assistance loan.
What are the requirements to qualify for the Boulder County Down Payment Assistance Program?
In addition to being income and asset-eligible for the program, all homebuyers must submit a completed application form and attend a homeownership training course. A homebuyer must also be preapproved by the lender of his/her choice. The City does not allow subprime, interest-only or adjustable-rate mortgages. The final piece of the application process is for the homebuyer to meet with a housing counselor who reviews their mortgage to ensure that it meets the City’s requirements and is also appropriate for the homebuyer’s situation. All of these steps help ensure that households cannot only purchase a home but can sustain homeownership. Once a homebuyer has completed the application process and has been determined income and asset-eligible, they may sign purchase contract on a home.
Does a homebuyer have to income-qualify for Boulder County Down Payment Assistance Program?
Yes. Household income may not exceed 80 percent of the Area Median Income (AMI) based on household size for Boulder County. This number is determined annually by the Department of Housing and Urban Development (HUD). Households may also not exceed the program’s asset limits, which are typically the same amount as the income limits.
How much down payment can a homebuyer receive?
The down payment assistance loan is up to 8.5 percent of the purchase price, with a maximum loan amount of $15,000.
Does a home buyer have to be a first-time home buyer?
Yes. The definition of a first-time home buyer is someone who has not owned a home in the past three years. An exception may be made for those who have been divorced within the past three years and lost their home because of the divorce.
What is the Boulder County Down Payment Assistance Program?
The Boulder County Down Payment Assistance Program is a loan to help first-time home buyers purchase a home in Boulder County (outside the City of Boulder limits). This program is administered by the City of Longmont. This is a loan up to 8.5% of the purchase price of a home, the maximum loan amount is $15,000. This loan can help first-time home buyers with down payment and closing costs.
Housing Down Payment Assistance Program
The City of Longmont has funds available to help low and moderate-income home buyers purchase their first home anywhere in Boulder County, except in the Boulder city limits. The funds may be used for down payment and closing costs needed to buy a home. 8.5 percent of the purchase price of the house, up to a maximum of $15,000 can be borrowed in the form of a loan. Eligibility will be determined by the household's gross income. The loan is at a 3 percent interest rate, paid back over ten years. Deferred loans are also available for those who qualify. Buyers must occupy the unit being purchased as their sole residence and must be able to qualify for an acceptable first mortgage. Buyers must complete the application process, including attending a Home Ownership Training Course before signing a purchase contract. This training is provided free of charge. To request an application packet, or if you have any additional questions call Molly McElroy, Housing Programs Specialist, at (303) 774-4648.