Our Home Buyers Assistance is for households financially ready to buy a home but lack the required cash to cover down payment and closing costs. What kind of assistance is available? The City of Fort Collins will provide a loan to eligible households to cover down payment and closing costs up to a maximum of 6% of the sales price (5% for down payment and 1% for closing costs if there are no Seller concessions). The assistance is in the form of a loan which is paid back in full when the house is either sold, transferred out of the buyer's name, rented, or if buyer seeks another second lien (like a home equity loan) on the property. Added to the payment (which is also due at sale, rental or transfer) is 5% interest on the principal. Federal Eligibility Guidelines Who is eligible? Buyers must have a household gross income meeting federal guidelines. Buyers must also have sufficient income, meaning total housing expenses will not equal more than 38% of their gross income, and total household debt must not be more than 42% of gross income. Buyers must not own or be listed on the title to any other property at time of application. There is a limit of $20,000 on buyer contributions or gift funds including earnest money without prior approval for special circumstances. What kind of house is eligible? The home may be a condo, townhouse, single-family or modular home on a permanent foundation. No mobile homes on rented land are eligible.The home must be located within the legal city limits of Fort Collins and have a purchase price and appraised value of less than $220,987. For purchases outside of Fort Collins, contact the Larimer Home Ownership Program or Funding Partners. The home must not have been occupied by a tenant any time within 90 days prior to application for assistance unless specific funding is available for these properties. Additional requirements The buyer must make an earnest money deposit of $1,000 or 1% of purchase price (whichever is greater) with their own funds. This can not be in the form of a promissory note. The buyer must also attend a homeownership class prior to closing. The class is taught through Neighbor to Neighbor at 970-484-7498. The buyer must use the house as their principle residence for as long as the loan is outstanding, or the loan becomes immediately due and payable. The property will be inspected by City staff for general livability. Any home built before 1978 must have an inspection attesting to its safety regarding lead-based paint.
Applications are available only through participating mortgage lenders. Funds are limited and are committed on a first-come, first-served basis. The program year begins in November of each year and continues until all funds are committed. Download a list of our participating lenders to the right. If you need additional information, contact the City of Fort Collins Affordable Housing office at 970-221-6758. Home Buyer Assistance through the City of Fort Collins is funded through grants from the Department of Housing and Urban Development HOME and CDBG programs and there is no guarantee funding will be available from year to year. |
|||||||||||||||||||||||||
