LONGMONT – Understanding your down payment options will help you make smart, informed decisions when it’s time to buy. With costs for housing continuing to rise and affordability decreasing along the Front Range, homebuyer assistance programs might open the door to buying a home. Here are some that you should know about:

Veteran’s Administration (VA)
To qualify, you must be an honorably discharged veteran of the US Armed Forces. This type of loan allows for up to 100 percent LTV, and in place of mortgage insurance requirements, the Veteran’s Administration guarantees a portion of the loan.

Federal Housing Administration (FHA)
This option requires as little as a 3.5 percent down payment, which can be in the form of gift funds. Mortgage insurance is required for the life of the loan, and both an upfront premium and monthly payments are required.

USDA Rural Housing
Designed to help low-income individuals and families purchase homes in rural areas, this option has income and property restrictions, and requires an approved lender.

Down Payment Assistance Programs
Programs are available through local city and county governments, and non-profit organizations. These programs often require homebuyer education classes and can be limited to first-time homebuyers.

Colorado Housing and Finance Authority (CHFA)
CHFA was created in 1973 to address the shortage of affordable housing in Colorado. It offers a variety of programs to lower required down payment and monthly mortgage insurance premiums. Income and purchase price limits are based on county.

House to Home Ownership Program (H2O)
This program provides down payment and closing cost assistance to borrowers purchasing property in the City of Boulder, with a maximum combined LTV of 105%. Requirements include being a first-time home buyer, meeting an income threshold, and working in Boulder city limits.

For more on this subject, visit the Elevations Blog at elevationscu.com/homebuyerprograms
Mark Fasnacht is a Mortgage Loan Originator at Elevations Credit Union in Longmont. If you have questions regarding mortgages, please call 303.931.9491 or e-mail [email protected]