One of the problems you are likely to face when buying your first home is not being able to afford the down payment. In some cases, you may even forget to factor it into your budget. But don’t worry, as there are down payment assistance programs for first-time home buyers in Denver. These programs are aimed at low to moderate income home buyers looking to buy their first home in the city. Down payment assistance can be used for the closing costs.
To qualify, you need to make sure that the property you are buying is able to meet the minimum standards for health and safety by the US Department of Housing and Urban Development. Your eligibility will also be affected by whether you are qualified by a private lending institution for a mortgage. If you are qualified for any of the down payment assistance programs in Denver, you will get a forgivable loan, which will be deferred for a period of five years. After that, it will be forgiven as long as you continue to meet the requirements in the deed and promissory note.
The amount of funding you will get from the down payment assistance program in Denver will vary according to your mortgage. You should also take note to occupy the home you want to buy as your primary residence. That way, you can improve your chances of qualifying for the program and any other government-supported housing loan. Rest assured, these programs should lessen the burden associated with down payments and closing costs.
You can find an array of down payment assistance programs for first-time home buyers in Denver. They can come from CHFA (Colorado Housing and Financing Authority) in the form of a down payment assistance grant that is up to three percent of your initial mortgage loan. The good news is you do not have to pay back this loan. CHFA may also provide an assistance grant for closing costs, which should cover one to two percent of your loan’s amount.