Down Payment Assistance Options
Lots of borrowers qualify for various loan programs, but they can't afford a down payment. Here are a few tips:
Borrow funds from your retirement plan
Research the specifics for your individual plan. Some people get down payment money from withdrawing funds from their Individual Retirement Accounts or pulling funds out of their 401(k) plans. Make sure you understand the tax consequences, repayment terms, and possible penalties for withdrawing early.
Ask for a gift from your family
Many home-buyers are sometimes lucky enough to receive down payment assistance from caring family members who are anxious to help get them in their first home. Your family members may be willing to help you reach the milestone of buying your own home.
Housing finance agencies
We work with 2 specific state programs that can help you with down payment assistance. Your only obligation is to bring $1,000 to the closing table.
The Colorado Housing Assistance Corporation will loan you money toward your down payment and closing costs up to $10,000. This is a low interest loan that could cost you as little as $50/month. Terms, conditions, credit worthiness and income limits do apply.
The Colorado Housing and Finance Authority is a grant program that can give you up to 4% of the loan amount to cover down payment and closing costs, this will not need to be paid back and can be a great tool for people that struggle to come up with a down payment. Terms, conditions, income limits, credit worthiness and higher interest rates do apply.