Many home buyers in Colorado Springs that would like to buy a home but cannot afford the down payment choose to obtain down payment assistance from the Colorado Housing and Finance Authority (CHFA).
Formerly, borrowers were not required to make any payments on the money received for the down payment (Silent 2nd Mortgage) until they sold or refinanced their home. Now, home buyers who utilize CHFA, have to pay monthly payments on the money borrowed; there are some exceptions with those participating in the JumpStart Program.
Additionally, the maximum amount a buyer can borrow is 3% of the purchase price whereas the minimum down payment requirement for FHA is 3.5%. The JumpStart Program is another avenue where home buyers can borrow up to $6,000 to put toward their down payment or closing costs. Update: Since the tax credit has expired, the JumpStart Program is no longer available. Buyers should contact CHFA for more information.
Colorado Springs Real Estate Agent Patricia Beck, providing real estate services to home buyers.