Colorado Springs Homes


First Time Buyers Of Homes In Colorado Springs


Someone who has never owned a home (or someone who has not had an ownership interest in a property in 3 years).

Many states have special loan programs to assist First Time Buyers purchase their new home. These programs often have lower interest rates and may offer cost assistance to qualified buyers.

In Colorado – we have special very popular programs. Both programs require you to invest $1000 of their own funds and attend a first time buyer class.

  1. CHFA= offered by the Colorado Housing & Finance Authority, this program offers a fixed interest rate which can be substantially less than the current rate. In addition, cash assistance is also available, or if a buyer prefers they can get an even lower rate if they don't need the cash assistance. For example, in a recent release the interest rate was 7.8% (the market rate was 8.25% at the time of the release) with 3% cash assistance. If the buyer didn't take the cash assistance, the interest rate was 7.3%. To qualify for CHFA funding, Buyer's must meet very strict income and family member guidelines. Additionally, if any of the CHFA funds are unused for closing costs, pre-paids, interest rate buydowns, etc…, their funds are applied as a principal reduction. CHFA funds may never be used to pay costs unrelated to the transaction. Many issues of CHFA funding have also had a recapture tax attached to them. That means that in the event that a Buyer used CHFA funding to purchase their property, if the Buyer sells within the first 9 years they may be liable for repaying a portion of the funds from the proceeds of the sale. Additionally, CHFA funds may not be used for investment property. In other words, your property may not be converted into a rental property without prior written approval of CHFA, or the loan may be called due & payable to CHFA. CHFA funds are only paid back if the recapture tax applies.

  2. The CSP Housing Authority 2nd - In Colorado Springs we also have available to first-time buyers a second mortgage option – This 2nd mortgage allows you to borrow up to $10,000. These funds may be used for down payment, closing costs, pre-paids, buydowns, or to increase the sales price above the asking price. These funds are borrowed at a fixed 1.5% interest for 30 years with a payment of $34.51 each month.


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Colorado Springs REALTORS®
Jorgette & Boris Krsulic
965 Pico Point
Colorado Springs, CO 80906
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