First Time Home Buyer Colorado Incentives, Programs and Grants

Colorado is a beautiful state that is brimming with wildlife, pristine lakes, and an array of outdoor activities. With fantastic schools, safe neighborhoods, and a cost of living that ranks just slightly above the national average, it’s the ideal location to buy your dream home. While everyone hopes to own a home eventually, there can be a lot of financial barriers that inhibit a person’s ability to secure a mortgage. It’s important to thoroughly research all mortgage incentives, programs, and grants prior to purchasing so that you can secure a mortgage at the best possible rate.

What Mortgage Incentives Does Colorado Offer?

first time home buyer Colorado

Mortgage incentives can reduce the cost of a new home by providing you with financial discounts if you meet specific qualifications. It’s important to be aware of all financial incentives, so you can access the lowest possible pricing on your new house. Here are the two primary mortgage incentives to consider.

Colorado Energy Saving Mortgage Incentive for New Homes: You can receive a mortgage incentive from the Colorado Energy Office (CEO) for newly built homes that are energy-efficient. As the home’s HERS Index Rating reduces, your financial incentive goes up. The maximum financial incentive is $8,000 for homes with a rating of 10 or less.
Colorado Energy Saving Mortgage Incentive for Existing Homes: If the home you’re buying isn’t new, you can still qualify for financial incentives, though they’ll be lower than for new homes. The maximum financial incentive is $3,000 for homes and $6,000 for homes with an FHA mortgage, provided you make specific energy-efficient alterations to the home within 120 days of closing. The required alterations include sealing in air, improving upon existing insulation until the home meets the 2009 IECC levels, and adding an Energy Star heating system to the house.

Many new homes built in the Denver area are built with efficiency in mind. For older homes, a few minor renovations could save you a lot of money on the house while reducing the recurring cost of energy bills.

What Programs Are There for First Time Home Buyers?

first time home buyer Colorado

There are a variety of first time home buyer Colorado assistance programs that can ease the process and financial burden of purchasing a new home.

Colorado First Time Home Buyer: Colorado First Time Home Buyer is an organization that offers down payment support for people who are seeking to purchase their first house. By helping to find mortgages with the lowest interest rates, they can assist you in finding the best deal on your mortgage, so it will continue to be affordable over the years.
Community Resources & Housing Development Corporation (CRHDC): The CRHDC is an organization that helps low-income people afford houses. They offer a variety of different programs to help people make down payments, find affordable mortgages, and make home ownership more affordable.
U.S. Department of Agriculture Rural Development: For those looking to purchase homes in rural areas, the USDA Rural Development offers a lot of viable programs. They provide low interest, fixed-rate loans to eligible applicants that are purchasing rural homes or properties.
Colorado Housing Assistance Corporation (CHAC): CHAC offers a down payment assistance program that will allow you to access financial help with a down payment, as well as low-interest mortgages that meet your income. To be eligible, the home buyer has to qualify as earning a low to moderate income, or 80 percent of the area median income.
NEWSED Community Development Corporation: NEWSED offers down payment assistance to eligible applicants, which can greatly reduce your financial responsibility for the down payment. To qualify, you have to be a first time home buyer, and you need to meet with a NEWSED counsellor in person. Your entire household income will be considered for eligibility, and you need to have a collective income that is less than 80 percent of the area median income. For a single person, that means that your collective household income needs to be less than $42,950 annually.

Colorado offers a lot of statewide, county, and city programs that can offer assistance with securing a down payment and accessing affordable mortgages, so all people can achieve home ownership in their lifetime.

Does Colorado Offer Housing Grants?

first time home buyer Colorado

In addition to loan assistance, there are grant programs in Colorado that can offer assistance to low-income people, elderly people, and nonprofit organizations.

United States Department of Agriculture Rural Development: In addition to offering low interest loans, the USDA Rural Development also offers grants to home buyers. The Mutual Self-Help Housing Technical Assistance Grant offers grants that help organizations secure low-income housing for their clients. The program also offers grants to elderly individuals to help remove safety hazards from their current home or new home.
CHFA Down Payment Assistance Grant: If a down payment assistance loan still doesn’t meet your financial needs, the CHFA offers a grant program to further reduce the financial strains of home ownership. Eligible applicants can receive up to 3 percent of the cost of your mortgage, thus greatly reducing the price of your down payment. To qualify, you need to meet specific income requirements, which vary by region.

While everyone dreams of owning their own home, few possess the funds to secure a down payment. Colorado offers a plethora of incentives, grants, and programs to assist first time home buyers with a down payment, as well as securing a low interest and affordable mortgage. To qualify for most grants and loan assistance, you need to be earning less than the area median income. For those who don’t qualify for grants and loan assistance, you may still be eligible for financial incentives for energy-efficient homes.

Movoto is a real estate agency with the sole mission of simplifying the home buying experience, so you can move into your dream home quickly and easily. With our dedicated team of professionals, we’re fully equipped to answer all of your questions and concerns while making the home buying process as stress-free as possible.