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Boulder County

Prepared by:

Mari Takeshita @ Cherry Creek Properties Mari@RealtorMari.com 303.941.6274

Sharon Campbell @ Guild Mortgage Company at 720-746-4072

CONTACT US FOR MORE INFORMATION

What is the Down Payment Assistance Program?

The Boulder County Down Payment Assistance Program provides down payment and closing cost assistance to first-time homebuyers purchasing a home in Boulder County (outside of the city limits of Boulder). Up to 8.5% of the purchase price (maximum $15,000) may be borrowed.

Loan Terms:

For households earning between 51-80% Area Median Income (AMI): 3% interest loan amortized over 10 years. For households earning below 50% Area Median Income (AMI): Deferred loan. No monthly payments, and 4% simple interest is charged for the first 10 years. Payment (principal plus interest) is due at sale, change of ownership, or refinance of property.
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Application Process:
The application process for the Boulder County Down Payment Assistance Program is a two-part process. The first part determines the eligibility of the homebuyer. The second part determines whether the home is eligible to be purchased with the use of funds from the Program.
Homebuyers are strongly encouraged to not sign a purchase contract until they have completed the full application process and are determined eligible for the Program.
Even if you are determined eligible and find a home that you like, that home may not be eligible to be purchased using the Boulder County/Longmont Down Payment Assistance Program.
Please read the below requirements to learn both your requirements and property requirements for the Program.
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Homebuyer Requirements:
• Gross household income must be at or below 80% area median income for Boulder County (see chart below). Household size includes everyone who will be living in the home. Household income will include all income regardless of who may be listed on the title and/or mortgage.
Boulder County Income Limits
Household Size 1 person 2 person 3 person 4 person 5 person 6 person
Maximum Income (This is the 80% figure) $45,500 $52,000 $58,500 $65,000 $70,200 $75,400
Maximum Income (This is the 50% figure) $32,850 $37,550 $42,250 $46,900 $50,700 $54,450
Meet asset requirements
• Be a first-time home buyer (have not owned a home for the past three years). Exceptions are made for those who have been divorced within the past 3 years.
Complete a home owner training class. ( class must be completed prior to signing a purchase contract) Home Ownership Training Classes
The Boulder County Home Ownership Training Course is a requirement for participants of the City of Longmont Affordable Housing Programs. These classes are held monthly throughout the County and are free and open to the public.
This free one-day course covers topics including:
• Choosing and working with real estate agents and lenders
• Cleaning up credit issues
• Information about contracts and inspections
• Home maintenance
• Budgeting
• Affordable housing opportunities
Registration is required, to register or for more information call 720-564-2279.
• Bring your gross monthly income and a list of monthly debts for class activity
• Lunch provided
• No childcare provided
• Spanish Interpretation is available upon request with at least 48 hours notice

• Qualify to obtain a first mortgage large enough to afford the property (co-borrowers permitted). The City of Longmont does not accept subprime, interest-only or adjustable-rate mortgages.
• Total combined housing debt (first mortgage and all subordinate financing) may not be more than 100% of the value of the property at the time of closing. This may require the homebuyer to contribute more than the minimum required contribution (see below)
• Meet with the Housing Counselor for a one on one budget session.
• Contribute a minimum of $2,000, or 1% of purchase price (whichever is greater) of own funds (lenders and/or developments may require more).
• Occupy dwelling unit being purchased as sole residence and not own other habitable property
• All household members must document lawful residency and provide an approved form of identification.
• Copies of Social Security cards for all household members over the age of six (6) must be submitted prior to closing.
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Property Requirements :
• The home being purchased must be in Boulder County, outside the City of Boulder limits
• The home being purchased must be purchased as the sole residence of the homebuyer and the homebuyer may not own any other habitable property.
• Purchase price may not exceed $349.125.00
• The home being purchased must be owner-occupied or vacant at the time the purchase contract is signed. Down Payment Assistance Funds cannot be used to purchase a home that will displace any tenants. If the homebuyer is purchasing the home that they currently rent, that property is eligible for the Program.
• Homes being purchased must pass a third party inspection. Any health and safety concerns and/or code violations, as determined by the City, must be fixed and documentation provided to the City prior to closing, review property inspection requirements for more details. Once an applicant’s final eligibility has been determined, the City will schedule an inspection. Please note that for households under contract, the program cannot guarantee that contract due dates will be met.
• Homes built before 1978 must have a Visual Lead Based Paint Assessment completed prior to closing. If there is any chipped, pealing, flaking or otherwise deteriorating paint, it must be tested for lead based paint, and if necessary, abated prior to closing.
• If the home being purchased is located in a flood zone, flood insurance must be purchased prior to closing and maintained for the life and the loan.
• Boulder County Down Payment Assistance Program
• Property Inspection Requirements
• The down payment assistance program requires that homes purchased are in safe, decent and habitable
• condition for homebuyers. Any safety or health concerns and/or code violations must be fixed prior to closing.
• In addition, the federal funding for the down payment assistance program requires the Program to contract for
• its own home inspection in addition to any inspection(s) that might be requested and paid for by the potential
• buyer. Potential buyers are encouraged to obtain their own inspection of the home they wish to purchase If a
• home buyer would like to receive an FHA 203(b) loan, please contact the program for additional information
• Certain repairs may be allowed to be fixed after closing with:
• bids for the work provided to the Program and the proper amount of money for the repairs escrowed with the
• title company to pay out to the contractor.
• Once an inspection is conducted, the City will inform the homebuyer of any repairs that will be required to be
• fixed prior to closing. All repairs must be repaired by a licensed professional and copies of the receipts for the
• repairs provided to the Program.
• Below is a list of some of the most common types of repairs that are required to be fixed. This list is only to
• provide a brief overview of the most common type of repairs; it is not a comprehensive list. There may be
• additional requirements for individual properties.
• • Smoke detectors must be installed per the city code for the city in which a home is located.
• • Carbon Monoxide Detectors must be installed per the Colorado State Law effective July 1, 2009. Link
• to bill: http://www.cdphe.state.co.us/dc/ehs/HouseBill09FAQ.pdf
• • Finished basements must have had a city building permit pulled and approved by the city in which a
• property is located.
• o The finishing of the basement must have been up to city code at the time of construction. This
• can only be determined by whether a building permit had been pulled and approved/accepted.
• o A retroactive building permit may be pulled. Additional work to the basement may be required
• for a retroactive building permit to be pulled and for the city to sign off on the permit.
• • Electrical wiring must be in good condition. Any abnormal conditions will be required to be fixed.
• o GFE receptacles must work, if they are present.
• o Exposed wiring must be fixed.
• o Breakers must be for the correct voltage.
• • Water heater must be safe and operable. Any leaks will be required to be fixed.
• • Plumbing must be in good operable condition. Any leaks will be required to be fixed.
• • Furnace must be safe and operable. Any gas leaks will be required to be fixed.
• • If the house has been winterized, it must be de-winterized and all major systems tested (electricity,
• water, etc. must be inspected).
• • Foundation and structure of home must be in stable condition. If there are any concerns, further
• investigation by a structural engineer will be required.
• • All bathrooms in the home must function properly.
• • Lead base paint requirements apply to homes built before 1978.
• Please contact Sharon Campbell with any questions 720-746-4072.
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Application Packet:
May be used to apply for Boulder County Down Payment Assistance Program, and any and all housing programs including the City of Longmont Affordable Housing Programs, City of Boulder, and Thistle Community Housing. Incomplete applications cannot be fully processed and will delay determining your eligibility for the program.

Guidelines for Boulder County Down Payment Assistance Program

The following provides information regarding requirements and guidelines for the Boulder County Down Payment Assistance Program.

Income Guidelines — Annual household income from all sources for all household members cannot exceed 80% of The U.S. Dept. of Housing and Urban Development’s (HUD) Area Median Income. Income from all household members is considered regardless of who is listed on the title and/or mortgage. Below are the current year’s income limits for Boulder County and income sources that will be calculated. If a borrower has a non-occupying co-borrower on their first loan that co-borrower’s income will not be counted if that person provides a signed statement verifying that they will not occupy the property and will not contribute to the household expenses. All co-borrowers will be listed on the City of Longmont’s promissory note for the loan and will be legally responsible for the repayment of the loan. A co-borrower may not be listed on the purchase contract as a buyer or on the title of the property.
Boulder County Income Limits
Household Size 1 person 2 person 3 person 4 person 5 person 6 person
Max. Income per Household at 50% AMI= $32,850 $37,550 $42,250 $46,900 $50,700 $54,450
Max. Income per Household at 80% AMI= $45,500 $52,000 $58,500 $65,000 $70,200 $75,400

Gross income is the combined household income which includes, but is not limited to, job earnings, Social Security and Social Services income (for all in household), TANF, VA benefits, unemployment income, military pay, worker’s compensation payments, child support, alimony/maintenance payments, income from pensions or retirement plans, stocks, etc. Employment income will be counted for all household members (age 18 and older) who will live at the property. Income in excess of $450 for full time student over the age of 18 will be excluded from income calculations. This limit does not apply to a student who is the head of household or their spouse. When this is the case, their full income must be counted. Failure to report household income is considered fraud and can have serious consequences, including disqualification from program.
Income Calculation — A “snapshot” of current income is taken at the time the application is submitted (based on current month’s pay stubs, a verification of employment completed by the applicant’s employer, and year-to-date earnings and documentation of all other sources of income), and is projected for the next 12 months. All known and/or anticipated income to be received throughout the year including bonuses, pay raises, etc. must be disclosed. Failure to report all household income is considered fraud and can have serious consequences, including disqualification from program.
Asset Guidelines — Assets include, but are not limited to, checking and savings accounts, money market accounts, and retirement accounts. An applicant may not have more than 80% of the area median income in assets including down payment. Note: retirement accounts, such as IRA, 401K, stocks, etc are considered assets, however, withdrawal penalties and taxes may be taken into consideration with written documentation. The interest/dividends from retirement accounts is added to the income calculation.
Boulder County Asset Limits
Household Size 1 person 2 person 3 person 4 person 5 person 6 person
Max. Income per Household at 50% AMI= $32,850 $37,550 $42,250 $46,900 $50,700 $54,450
Max. Income per Household at 80% AMI= $45,500 $52,000 $58,500 $65,000 $70,200 $75,400

Income/Asset Re-certification after 6 months — Recertification must occur for down payment assistance applicants who have not closed on a property within six months of initial eligibility approval. Recertification is required regardless of whether a purchase contract has been signed and will occur every six months until closing. If an applicant is deemed over the income and asset limits after recertification, down payment will not be provided.
First Loan — An applicant must qualify for a first mortgage, with a lender of their choice, large enough to purchase the intended property. The City of Longmont does not accept subprime loans, interest-only loans, or adjustable-rate mortgages. Program staff reserves the right to deny eligibility based on the terms of any loan.
Total Property Debt — The total housing debt on a property at the time of closing may not be more than 100% of the value of the home. Total debt includes first mortgage and all subordinate financing. The value of the home is the purchase price of the home unless the appraised value is higher than the purchase price. Home may not be purchased for above the appraised value. Homebuyers may be required to contribute more than the minimum program requirement (see below).
Application Fee — A nonrefundable $25 processing fee is required for all applicants. The check should be made payable to the City of Longmont. Cash and credit cards are not accepted.
First Time Homebuyer — An applicant interested in down payment assistance must be a first-time homebuyer. A first-time homebuyer is defined as a person who has not owned a property for the past 3 years. Exceptions are made for newly-divorced single persons/parents (within the past 3 years).
Home Buyer Training Course — All applicants must attend a CHFA-approved homebuyer training course. In Boulder County, this is a free one-day course that covers working with real estate agents and lenders, credit issues, contracts and inspections, home maintenance, and budgeting. It must be completed before a purchase contract is signed for the Boulder County Down Payment Assistance Program.
One-on-One Budget Session (Prepurchase Counseling) — Once an applicant is determined to be income and asset-eligible, they will meet with a housing counselor. The counselor will review the first and second (DPA) mortgages to ensure the terms are understood and the loans are in compliance with City guidelines. The applicant must bring to this meeting, a completed Form 1003 (loan application), Good Faith Estimate, Truth- in-Lending statement, a current budget, and a budget showing your future financial situation. The City of Longmont does not accept subprime loans, interest-only loans, and adjustable-rate mortgages. Program staff reserves the right to deny eligibility for an applicant based on a negative recommendation by the housing counselor or on the terms of your loan. If you are denied eligibility, the housing counselor will work with you to determine an action plan so you may qualify for the program in the future.
Owner Occupancy — All homes purchased with assistance from the Down Payment Assistance Program must be the sole residence of the buyer, be continuously occupied, and may not be rented. Staff will verify your occupancy every year. If you are no longer living there, the remaining balance of any loan on the property will be invoked. You may not own any other habitable property in addition to this property.
Property Inspection — A property receiving down payment assistance funds must be determined safe and habitable by the City prior to closing. Once an applicant’s final eligibility has been determined, the City will schedule its inspection. Any safety and health hazards and all Housing Code violations listed in the report, as determined by the Uniform Housing Code, must be fixed and documentation of the repairs provided to the City of Longmont before closing. Down Payment Assistance funds may not be used to cover the cost of repairs.
If inspection issues are unable to be fixed, the property will be determined ineligible for the Down Payment Assistance Program.
In some circumstances, money may be allowed to be escrowed for the repairs to be conducted after closing but before occupancy. Prior approval from the City is required. Immediate health and safety issues are ineligible. If any funds are being escrowed for repairs, the home must appraised for at least the amount of the first mortgage and Down Payment Assistance loan.

Please note that while the City will share a copy of the inspection report with the homebuyer, it is still the responsibility of the homebuyer to inspect the home for issues important to them. Homebuyers are encouraged to have their own inspection done to protect their interest. The City of Longmont Affordable Housing program is not liable for the condition of any property at the time of purchase or for any issues that may arise after purchase.
Lead-Based Paint — If a property was built before 1978, the property must pass a visual inspection for any chipped, pealing, flaking or otherwise deteriorating paint (required form provided by the City of Longmont). If there is deterioration, the house must be tested for lead-based paint. If the home tests positive for lead-based paint, the paint must be stabilized prior to closing and occupancy.
Property Appraisal — An appraisal must be completed on all properties and submitted to the City of Longmont before closing. The purchase price may not exceed the appraised value of the property. For 203(k) loans (rehab loans) or situations where money is being escrowed for repairs to be conducted after closing, the appraised value must equal the total of the first mortgage and down payment assistance loan.
Minimum $2,000 or 1% of the of the home Contribution — Home buyers must contribute at least $2,000, or 1% of the purchase price (whichever is greater) to the purchase transaction. This is usually put in the form of earnest money; however, other fees such as inspection and appraisal payments may be considered. A lender and/or development may require more. A homebuyer may not receive any cash back at closing even if they put more than the required minimum of $2,000 down.
Owner’s Acknowledgement of Acquisition Form — This form verifies that the property was either vacant or owner-occupied at the time the contract was signed and must be signed by buyer and the seller. A completed form must be provided to the Affordable Housing Program staff prior to closing. Down payment assistance may not be used for buyers purchasing properties that displace, or otherwise involves tenants.
Non-Occupying Co-Borrower — Co-borrowers may be accepted. The co-borrower must provide a written signed statement verifying that they will not reside at that property, and their income will not be counted. All co-borrowers will be listed on the promissory note for the loan and will be legally responsible for the repayment of the loan. Co-borrowers may not be listed on the purchase contract or the title of the property.
Legal Documents – All homebuyers receiving a Down Payment Assistance loan will sign a deed of trust and promissory note at closing accepting the terms of the loan. The deed of trust will be recorded with the Boulder County Clerk and Recorder’s Office as a lien against the property. The lien will be released once the loan has been repaid in full.

Equal Opportunity

In accordance with the provisions of the Equal Opportunity Act and the Program’s policies, there will be no discrimination against an applicant for these funds on the basis of age, source of income, sex, race, marital status, sexual orientation, national origin, religion or handicap.