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Program aims to help first-generation homebuyers

Eligible borrowers could receive up to $25,000 in down payment assistance

ColoradoBiz Staff //July 1, 2024//

Program aims to help first-generation homebuyers

Eligible borrowers could receive up to $25,000 in down payment assistance

ColoradoBiz Staff //July 1, 2024//

Colorado Housing and Finance Authority announced a new program Monday to support Coloradans who have not previously owned a home, and whose parents or guardians were not homeowners. The program, dubbed CHFA FirstGeneration, offers up to $25,000 in down payment assistance and a fixed-rate 30-year home mortgage loan to eligible borrowers. The program also serves those raised in the foster care system who have not previously owned a home.

“The CHFA FirstGeneration program is aligned with CHFA’s vision that everyone in Colorado will have the opportunity for housing stability and economic prosperity,” said Cris White, executive director and CEO of CHFA. “Homeownership is one of the primary ways that households build wealth and pass wealth from one generation to the next. This program is designed to provide an opportunity for more Coloradans to establish an intergenerational legacy of homeownership.”

Wealth disparities among historically underserved populations persist today and are evident in homeownership rates. Data published earlier this year by the National Association of Realtors indicates that 70 percent of white Coloradans own their home, compared with 42 percent of Black and African American Coloradans and 57 percent of Hispanic Coloradans. Underserved populations are also disproportionately cost-burdened, spending a greater percentage of their income on housing.

“CHFA’s investment in affordable and responsible homeownership includes a commitment to providing equitable homeownership resources,” said Dan McMahon, CHFA director of home finance. “As we seek to increase homeownership rates for underserved populations, we recognize that those without a family history of homeownership often face significant barriers to achieving their goal of owning a home. Our hope is that the CHFA FirstGeneration program can expand opportunities and access for these homebuyers.”

Down payment assistance provided through CHFA FirstGeneration is offered as a second mortgage paired with a CHFA home loan, repayment of which is deferred until certain events such as the sale or refinance of the home. Eligible borrowers will work with their lender to submit an affidavit attesting to their first-generation homebuyer status. Additional details and a list of participating lenders are available at chfainfo.com/firstgen and in Spanish at chfainfo.com/hogar-firstgen.

For more information about CHFA, visit chfainfo.com or call 1-800-877-2432.

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