As you may know there are programs available to help you with the down payment when purchasing a home( down payment assistance).  These programs are available to first time home buyers as well as non-first time home buyers and most are in the form of a grant.  There are income, credit and debt to income (DTI) ratio requirements . There is one detail that seems to be a common misconception about these programs.  They arenot “stand alone” grants,  they are not separate funds that you qualify for outside of your home loan.

When you are online searching for “down payment assistance” and you find outlets and links to lenders who can provide these programs, if you choose to complete an application you are not just completing an application for the down payment assistance program, you are completed a loan application.  Again, there are NO down payment assistance options in Colorado that are “stand alone” grants that are separate funds that is specifically for your down payment.

All down payment assistance programs work with your loan program.  If you qualify for the loan program associated with the down payment assistance, then you qualify for the down payment assistance. Make sense? Most of these programs will have a slightly higher rate, which is how they are able to help provide the assistance.  These rates are not something that lenders can be competitive with, which means that every lender who is approved and can offer these programs have the same rate.  Only variances will be in their fees, read more about closing costs.

Be mindful when you are searching for these programs and know exactly what you are completing when submitting applications or inquiries.  If you are unsure, err on the side of caution and contact the lender.  If calling is not your preference then reach out via email, most lenders will have their email listed on their website.

If you are looking for down payment assistance, would like more information on the programs available and/or would like to see if you qualify please contact us.