Down Payment assistance isn’t only for those who have no savings or have lower credit scores. I think it is people who DO have good credit and a healthy savings, but aren’t looking to exhaust their savings in order to buy a home. Opting to hang onto the funds in your savings and other asset accounts instead of depleting them for your down payment is becoming more common. In fact in some cases it is smarter to hang on to your money to have in the bank to have for any unforseen homeowner expenses. All too often once you get the home of your dreams, you forget that you may need additional home furnishings (curtains, blinds, furniture, etc.) or a few months down the road you might need to replace a sump pump or fix an a/c. It is always safe to have funds in the bank to cover unforseen needs your new home may bring.
If you are curious and would like to know more information on some of the down payment assistance programs here are few programs you will want to look into and research. CHFA (Colorado Housing and Finance Authority) is the most common, but there are also options such as CHAC (Colorado Housing Assistance Corporation), HOAP(Home Ownership Assistance Program for Aurora)and Adams County has a Down Payment assistance program.
All of these programs have their own guidelines and requirements, but the most common requirement shared by them is that you will have to put at least $1000 of your own funds into the purchase and that you complete a first time home buyer course (which I highly recommend even if you are not using down payment assistance), as well as their own application and underwriting process. Make sure to check out the links and learn a little bit about the programs to see if this is something that would be of interest and would help you.
As always be sure to discuss these options with your lender. Something to be aware of is that not all lenders are approved to do these assistance programs. So if this IS of interest make sure you research a good lender who is approved and/or ask your current lender right away if they are.
As always if you ever have any questions, or would like to discuss further, please feel free to send me an email or give me a call. If you would like to get pre-approved, pleaseclick here for a secure online loan application.
(Quick note, we are an approved lender for all down payment assistance programs and the MCC!)
Summit Mortgage Corporation
303-779-0591 ext. 101