Real Estate with Dallice – Affordable Housing and other Programs
The obstacles to buying real estate are many! Let’s not sugar coat it. In the last 6 years we have seen real estate appreciate faster than most people can keep up with saving for the down payment. The Boulder-Denver-Front Range area was never inexpensive to start with and proportional to the average income, it continues to challenge home buyers. The struggle is real and not everyone can afford to buy here. 🙁
However, I believe there is a portion of people who CAN buy here, if only they knew about various programs available to qualified persons. Programs that would help them by bridging the gap between what they can afford and what is available to buy.
Seriously… I’m talking to public servants, health care workers, single parents, teachers and more, who have steady incomes, good credit and small down payments.
- City of Boulder Affordable Housing Program offers help to people in low, moderate and middle income situations with the purchase from the permanently affordable homes pool, offering down payment grants or down payment loans. There are restrictions of course and you need to read about rentals restrictions, purchasing and selling restrictions, as well as appreciation caps. Check out the website for more info about offerings and to determine qualification requirements.
- City of Longmont Affordable Housing Program is similar to Boulder’s in many ways. They also have a program to help qualified persons repair and rehabilitate an existing home. And one to help make a home more accessible for those who’s homes accommodate disabled or elderly people.
- CHFA (Colorado Housing and Finance Authority) provides down payment assistance and closing cost assistance via a grant or second mortgage to those who qualify. Qualification involves taking a class, not earning too much, having at least $1000 of your own money to chip in etc. Check out their website and remember… you need to use a lender who is also qualified to offer these loans, so call me for a referral or to chat before starting a new lender relationship.
- VA Loans are offered to those serving, veterans or their surviving spouses. Because the government guarantees a portion of the loan, lenders offer very favorable terms for a VA loan. This might include no down payment, no mortgage insurance or lower closing costs. Plus the VA may be able to help you if you run into difficulty paying your mortgage. This benefit is NOT a one time use. But is a one-at-a-time loan. You must have paid off your existing VA loan in order to get another going. (IMHO a well earned perk for our service men and women and if you go back to school under the GI bill, you can also save the cost of tuition, thereby reducing your debt or monthly expenses and allowing you to afford more house! Lots to look into, right!?)
- The Dept of Housing and Urban Development (HUD) offers a program called Good Neighbor Next Door, which helps firefighters, EMT’s, law enforcement and teachers to buy HUD homes at half price in “revitalization areas”. Sadly (or maybe not) there is not much to offer in this regard around here, so this one is of limited use right now, but may be helpful to you if you are contemplating a move to another area. I’m no expert in this one, but will be happy to put you in touch with someone who can provide guidance.
Plenty of additional reading links contained within this post, isn’t there? With that in mind, I’ll leave you for today. You know where to find me if you have questions, need help, would like a referral to a lender who can help with any of these options.
It almost goes without saying, I’d be delighted to work with you and help you get one step closer to home ownership – whatever the route we take. Home ownership is a privilege and a pleasure. Getting there is not a walk in the park… then again, nothing worthwhile is ever easy!
Our next post will be along the lines of Obstacles to buying real estate.