Another government-assisted program to meet the need of a down payment in today’s crisis is by using the CHFA in Colorado or the CHFA Mortgage Credit Certificate (MCC) program or a similar housing authority program. This program will help CHFA first time home buyers to save money each year that you live in your home. You can claim up to 20 percent of the mortgage interest each year as a tax credit on your federal IRS tax returns. The remaining 80 percent is still eligible for interest deduction for your home’s mortgage.
For first time home buyers in Colorado, ever year they can claim a dollar-for-dollar reduction of income tax liability on 20 percent of the mortgage interest on their first mortgage. This will reduce the amount of federal taxes owed. Except CHFA FirstStep and CHFA FirstStep Plus, CHFA MCC can be used with a CHFA First Mortgage Loan. The MCC can be issued with certain other first mortgage loans independent of CHFA.
There are certain targeted areas, which are determined by census tract, that have different income and purchase price limits that are supported by these programs and no first time homebuyer requirements.
CHFA can also lend you money for the down payment requirement. You can still ask up to 6% of your buyer closing costs from the seller. This can help a lot especially if you want to save your money for other equally important expenses like basic home improvements and repair later on.
CHFA helps the lower and middle income Coloradans to increase their capability of affording their own homes. CHFA only requires home buyers to attend home buyers education to be completed. Denver CHFA offices are located centrally downtown and do take consumer calls. For you to be able to secure a CHFA loan you have to work with a CHFA approved lender. There are 13 approved lenders in Colorado.
CHFA can give up to a 3% loan. CHFA’s interest rates are competitive to market rates and as life gets tougher in Denver, need for these mortgage programs have grown. There are also new programs that helps first time Colorado home buyers in utilizing their tax credit to assist you with your down payment. For those who have recently worked on getting their credit in good standing (700+), there are new program which offers a 3% down, 30 year fixed rate with no mortgage insurance.
As a borrower you have to invest $1000 into the transaction when you buy or $500 if you are refinancing your home with same requirement like attending the home buyer’s education counseling and also you must live in the house. Depending on the CHFA loan program that you select, there are also income limitations or restrictions that the CHFA imposes. Just check out all of the programs and see what best suits your need. For more information you can call us. You would have to fill out some basic pre-approval and be assured to get approved for a CHFA loan today.