For those who qualify for Boulder’s Affordable Housing Program, there are two down payment assistance programs that can help on your path to home ownership.
- The H2O program is designed to help those participants who would like to purchase a market rate property (one not designated as permanently affordable).
- The 3% solution is only able to be used on homes that are part of the Thistle Communities program. Let’s get you up to speed on both options.
The H2O (House to Home Ownership) program offers those who qualify for Boulder’s Affordable Housing Program a downpayment assistance program to defray homebuying costs. It’s not a grant – it’s a deferred loan that doesn’t mature (come due) for 15 years.
During those 15 years, you don’t have to make payments on the loan at all. However, at the end of the 15-year term, the loan becomes due. Homeowners must refinance out of that loan or pay it off completely. Homeowners must also pay an “interest rate” of 15% of the home’s appreciation at maturity.
If you happen to own the home for 2 years of less, you’ll only owe the amount you initially borrowed. It’s the only program in the city’s Affordable Housing Program with no resale restriction – you can enjoy full market rate appreciation and buy any property you choose for which you qualify for financing. The brochure for the H2O program can be viewed here and includes additional information about the program for prospective homeowners.
The 3% Solution can only be used on Homeworks properties. It’s a grant that’s helps homebuyers in the Affordable Housing Program bridge costs between funds they have available for downpayment and closing costs and funds required by the bank.
The grant can be given for up to 3% of the home’s purchase price. The upside is that homebuyers never have to pay this back – it remains invested in the property they purchase. For example: if you buy a home for $100,000 and receive a 3% grant of $3000 to assist with closing, that $3000 grant will be repaid to the 3% program when you sell the home through proceeds of the sale.
Ready to learn more about Boulder’s Affordable Housing Programs and how to apply and qualify? We have you covered. Click the link below:
