Get Started!

It takes less than 30 seconds to move toward homeownership. And it is free. Let us help you.

Carbondale

CONTACT US FOR MORE ANSWERS

What are the Terms of a Garfield County
Housing Authority Loan?
• GCHA provides loans to families who need
help to purchase a home. Funds can be used
to cover the down payment and closing costs.
• Loan can be 3% of purchase price up to
$10,000.
• You make no monthly payments during the
term of the loan, however, this assistance is
not a grant.
• You must repay the down payment loan
within 15 years unless you are in default or
one of the situations listed in question #3
applies to you. Then you must repay your
loan immediately!
• When you repay your loan the amount you
repay is based on how much you borrowed
and how much your home has appreciated.
Because we do not know how much your
home will increase in value, this loan is
considered an equity share mortgage. You
will repay a pro rata share of the recognized
appreciation (if any) based on the percentage
of the GCHA loan to the original purchase
price. See question 4 and read your
disclosure forms carefully!
• An exception to this is if you wish to repay
your loan in the first 2 years. Then you will
owe only principal balance (the amount you
borrowed)
2. Who Can Get Help?
Eligible families must:
• Must be working a minimum of 30 hours per week and
earn 150% or less of the Area Median Income. (see
income limit chart at www.fundingpartners.org)
• Be willing to make a minimum investment toward of the
purchase of the home of 1% of the purchase price or
$2,000 whichever is greater.
• Be able to qualify for a mortgage with the help of
GCHA funds.
• Be willing to repay the loan.
• Attend home owner training.
• Live in the home purchased.
• Not own other residential property at the time of
purchase.

The loan must be repaid within 15 years unless one of the
following situations applies. If this should happen, the full
balance of your loan is due immediately:
1. You sell your home.
2. You refinance your home.
3. You use your home for collateral on other loans.
4. You no longer live in your home.
5. You do not pay your first mortgage or you go into
foreclosure.
6. You file for bankruptcy.
7. You use your home for some purpose other than a
residence.
8. You use the home for illegal activities.
9. The 15-year term of this loan is up.
10. If you pass away, your estate must repay this loan.
4. How Much Will I Owe?
This information is covered in detail in your Loan Disclosure documents.
READ THESE DOCUMENTS CAREFULLY BEFORE AGREEING TO THE TERMS OF THIS LOAN!
Example: Your family purchases a $200,000 home. You borrow $6,000 (or 3% of the purchase price of your home) from
the Garfield County Housing Authority down payment assistance program to cover the down payment. Assume you want to
sell your home in 5 years, and at that time it appraises for $225,000. By signing the contract for this loan, you will be
obligated to repay according to the calculations below.
1. Principal or Loan Amount: $6,000
2. Appreciation: $25,000 increase in value from the original purchase price of $200,000
3. Pro Rata Share of the Equity: 3% of the $25,000 Equity
4. Repayment:
a. Principal $6,000
b. Pro Rata Equity Share +$ 750
$6,750 Total Repayment
GARFIELD COUNTY HOUSING AUTHORITY
DOWN PAYMENT ASSISTANCE PROGRAM
1. What are the Terms of a Garfield County
Housing Authority Loan?
• GCHA provides loans to families who need
help to purchase a home. Funds can be used
to cover the down payment and closing costs.
• Loan can be 3% of purchase price up to
$10,000.
• You make no monthly payments during the
term of the loan, however, this assistance is
not a grant.
• You must repay the down payment loan
within 15 years unless you are in default or
one of the situations listed in question #3
applies to you. Then you must repay your
loan immediately!
• When you repay your loan the amount you
repay is based on how much you borrowed
and how much your home has appreciated.
Because we do not know how much your
home will increase in value, this loan is
considered an equity share mortgage. You
will repay a pro rata share of the recognized
appreciation (if any) based on the percentage
of the GCHA loan to the original purchase
price. See question 4 and read your
disclosure forms carefully!
• An exception to this is if you wish to repay
your loan in the first 2 years. Then you will
owe only principal balance (the amount you
borrowed)
2. Who Can Get Help?
Eligible families must:
• Must be working a minimum of 30 hours per week and
earn 150% or less of the Area Median Income. (see
income limit chart at www.fundingpartners.org)
• Be willing to make a minimum investment toward of the
purchase of the home of 1% of the purchase price or
$2,000 whichever is greater.
• Be able to qualify for a mortgage with the help of
GCHA funds.
• Be willing to repay the loan.
• Attend home owner training.
• Live in the home purchased.
• Not own other residential property at the time of
purchase.