CHFA spells First Time Home Buyer Loan Program (Available in Fort Collins, Loveland & Windsor, Colorado)

For most people, homeownership is a dream to achieve as it brings about a tremendous amount of personal pride and a sense of accomplishment.  But many working individuals and families are finding it difficult to save enough money for a down payment as generations did years ago.  This is an obstacle that is being addressed with the help of the CHFA (Colorado Housing & Finance Authority) loan program.

CHFA offers fixed-rate, low interest loans and, in some cases, cash assistance for the down payment and closing costs.  CHFA offers 30-year fixed rate loans so that your payment will be consistent throughout your 30-year loan.  This makes a home purchase more viable today and less risky than the popular ARM loans that created a lot of the foreclosure problems recently. 

If you qualify for a CHFA loan, you also qualify for cash assistance for the down payment and closing costs.  An alternative to this is asking the seller to pay for your closing costs as part of your offer to buy their home.  There are many things a buyer, especially a first time home buyer, can ask a seller to pay including buyer closing costs, buyer prepaid expenses, buyer loan points, even for an appliance or carpet allowance so you can get a new refrigerator or carpet, for example.

Are you eligible for a CHFA loan?  These loans are offered to someone who has not had ownership in a primary residence for the past 3 years.  The annual gross household income determines eligibility.  There is a direct relationship between the borrower’s income and the price of the home purchased.  Standard underwriting guidelines used to qualify borrowers for home loans are based on a threshold ratio of up to 29% of house payment to gross monthly income, and up to 41% of the borrower’s total debt to gross income.  Here are the Colorado area specific limits for the HomeStart program: Income & Purchase Price Limits.  Eligible properties include single family detached homes, condos, townhomes and homes attached to a permanent foundation.

If you are eligible for a CHFA loan, you will need to complete a homebuyer education class prior to closing.  The class is free and will help prepare you for the home buying process.

You can apply for a CHFA loan through an approved lender or bank.  I’ve recently put 2 home buyers through this loan program with great results.

If you are a first time home buyer in the Fort Collins, Loveland and Windsor, Colorado area then I would be able to assist you throughout the home buying process.  My specialty is working with first time home buyers and helping educate and guide buyers through the entire process to make their dreams of home ownership a reality.  I have great success stories and would be happy to provide references as well a highly recommended mortgage broker with expertise in first time home buyer loan programs.

Your dream of buying a home can become a reality…and an affordable reality through this great loan program, CHFA.

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