Good news for Millennials who are ready to buy a home in Denver! The Colorado Housing and Finance Authority has started a new program to finance and help buyers with down payment and closing cost assistance.
Qualified buyers can finance up to 5 percent of the purchase price of a home. For Millennials, who may be looking at renting versus buying, that may mean that their mortgage payment could be the same as rent. So why not invest in your future by investing in your own home?
A grant program
The program is a grant program, which means that assistance given doesn’t have to be repaid. The catch is that grant recipients must pay a higher interest rate on their mortgage which is also made through one of CHFA’s 90 lending partners. The current rate through CHFA is 3.75% on a 30 year fixed rate mortgage. A borrower who requests assistance for 3% of their down payment would pay 4.25%. A borrower who requests assistance for 2% of their down payment assistance would pay 4.5%. A borrower who only needs to finance closing costs would pay 4%.
Borrowers show typical requirements
Borrowers have to show typical requirements to get a mortgage: steady employment, income to pay the mortgage and a FICO credit score of at least 620. The grant program also requires borrowers to attend a homebuyer education course and contribute $1,000 toward the home purchase. The best part of the program is that you don’t have to be a first-time buyer.
Making the American dream attainable
Owning your own home is the American dream. Many Millennials have given up on that dream because of the housing crash. They’d rather not be tied down to a home that could become an anchor around their necks, as it may have been for their parents. But the market is improving, interest rates are ridiculously low and rents are not. Kudos to CHFA for doing something to make the American dream more attainable!
If you would like to find out more about this amazing program, give Tena a call today! 303-452-5853