Guest Post by Bobby Kurpinsky:

The Colorado Housing Assistance Corporation, otherwise known as CHAC, offers down payment assistance to First Time Home Buyers who only have $1000 to put down on a home. CHAC considers a first time home buyer to be anybody who has not owned a home within the last three years. CHAC is a great alternative to CHFA, also known as the Colorado Housing and Finance Authority, since CHAC allows lenders to provide a FHA loan as the first loan and an option of no payments for five years or a 2% interest rate for thirty years on the second loan.

If you are short on cash for a down payment CHAC beats CHFA in a side by side comparison, hands down.

These two options alone will give a borrower a lower monthly payment compared to CHFA along with more buying power to purchase a bigger home or a home in a nicer area. To qualify for CHAC down payment assistance one must be buying a home in the following counties:

• Denver County,
• Arapahoe County
• City of Lakewood or Jefferson County (excluding Arvada and Westminster)

If you are in one of the aforementioned counties CHAC will give up to $10,000 to you to help purchase your first home. CHAC will NOT provide assistance in Aurora, Douglas, or Adams County. Don’t worry though, if you are outside the already mentioned counties and in the state of Colorado CHAC will still provide up to $5,000 for down payment (repayable at $50 a month over 150 payments or 12.5 years for down payment assistance).

If you are buying in one of the lendable counties you must meet CHAC’s income requirements to qualify for the program as well.

• One person in the household the income limit is $42,550
• Two people in the household $48,650
• Three people $54,700
• Four people $60,800
• Five people $65,650
• Six people $70,550.

To qualify for CHAC Down Payment Assistance you need to meet the income requirements and you must attend a First time homebuyer class with CHAC.  Classes are held all over the Denver Metro. Upon completion of this class you will receive a Certificate that you are required to have in order to obtain your final approval on your CHAC loan.  CHAC only requires $1000 into the transaction so make sure your Realtor does not put down more than $1000 down for earnest money because you can’t get the excess back at closing.  Most sellers understand this CHAC requirement.

In my opinion If you are short on cash for a down payment CHAC beats CHFA in a side by side comparison, hands down.

For more information on CHAC loans please contact us at (888) 360-3935.

Bobby Kurpinsky is a Colorado Home Loan Specialist and has been assisting home buyers qualify for down payment assistance for years.  For questions feel free to email Bobby at bkurpinsky@megastarfinancial.com or call him directly at (720) 529-1706.