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Colorado Springs

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 ANSWERS

COLORADO SPRINGS HOUSING AUTHORITY

Additional programs offered through the Housing Authority of the City of Colorado Springs are operated in conjunction with the Housing Assistance Programs. These include Family Self-Sufficiency, Homeownership, the Golden Circle Nutrition Program, and the Colorado Springs Senior Center.

Family Self-Sufficiency
The Family Self-Sufficiency program provides an opportunity for participants to complete a college degree, become employed in their field of study, and to realize the ultimate American Dream – that of becoming homeowners. Any rent increases that the household would have paid for the five years during the household’s participation in the program is placed in an escrow account to be paid at the completion of the program. The money may be used in any way. Several participants have used it with our Homeownership program and now own their own home! For more information contact the Housing Authority.

Homeownership

***THE HOUSING AUTHORITY OF THE CITY OF COLORADO SPRINGS IS NOT TAKING ANY NEW APPLICATIONS FOR ITS FIRST TIME HOME BUYER DOWN PAYMENT ASSISTANCE PROGRAM UNTIL FURTHER NOTICE. THERE IS NO WAITING LIST. THANK YOU FOR YOUR PATIENCE. IF YOU HAVE ANY QUESTIONS, PLEASE CALL JUDY AT 387-6714.***

When there are funds available, The Housing Authority offers a homeownership program in the form of a down payment assistance loan for first time homebuyers who are low-income. To be eligible, households of more than a single person (single households are reviewed case by case), must not have owned a home for three years, have an income of 80 percent or less than median income for El Paso County adjusted for family size (see program information link below), and meet a lender’s usual standards for providing a mortgage, (i.e., stable income for two years from the same source, good credit, few debts, etc.) Households should have an annual income of at least $24,000.

First Time Homebuyer Program

Eligible applicants:

¨ First time homebuyers (or must not have owned a home in the last 3 years)

¨ Annual household income may not exceed 80% of median income for El Paso County (see chart below showing 80% of median income adjusted for family size)

¨ Applicant must meet lender’s usual guidelines for obtaining an “A” paper mortgage loan

¨ Minimum of two persons in the family (1 person households considered on case-by-case basis)

¨ Buyers as well as co-signers must occupy the property as a primary residence

¨ All household income must be considered

¨ Buyers must have a minimum of $1,000 of their own funds to invest in the transaction (this $1,000 may be in the form of earnest money and/or up front lender’s fees)

¨ Must attend a first time homebuyer’s workshop (prior to closing), HUD certified program is required

¨ Must have a credit approval letter from lender before applying for assistance with the Housing Authority.

Loan terms:

¨ Up to $10,000 @ 1.5% for 30 years. Monthly payments are $34.54 per month on $10,000; $25.88 on $7,500; $17.27 on $5,000; and $8.63 on $2,500

¨ Loan amount may not exceed $10,000

¨ Recalculation of interest rate for early sale or refinance

¨ The first mortgage, when combined with second mortgage, as well as any other mortgages, grants, etc., may not result in cash back to borrower. The sum of all financing may not exceed 100 percent of the cost to acquire the property plus any normal prepaid expenses

¨ No fees are associated with the Housing Authority loan.

Funds may be used to cover the following costs:

¨ Borrower’s reasonable closing costs (can include 1% LOF, and 2-1 buy down), but not lender’s discount points or buy down fees, or to pay off debt to qualify for first mortgage

¨ Pre-paids

¨ Down payment

¨ Funds may be used with CHFA’s MRB FirstStep Program or the El Paso County Bond Program

Funding:

¨ Funds are on a first come, first approved, first closed basis

¨ Funds may be limited from time to time

¨ Funding may be for specific target areas within the County of El Paso, or for assistance only in Colorado Springs city limits

¨ Purchase price cannot exceed $180,000 for existing homes or new construction

Lender participation and information:

¨ Any lender who can provide “A” paper loans (FHA, VA, conforming Conventional), fixed rate only

¨ Lender must pre-qualify and credit approve applicant as “A” paper (borrowers with credit scores under 600 will be reviewed on case by case basis). Letter must be provided to the Housing Authority confirming status prior to appointment with Housing Authority

¨ Certification of applicant’s $1,000.00 commitment must be provided

¨ Contact Judy at 387-6714 for questions, appointments, and documents required.

# in Household
Income not to exceed the following:

1 Person
$38,100

2 Person
$43,500

3 Person
$48,950

4 Person
$54,400

5 Person
$58,750

6 Person
$63,100

7 Person
$67,450

8 Person
$71,800