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The following provides information regarding requirements and guidelines for the Boulder County Down Payment Assistance Program and the Community Housing Program. For any questions please contact Molly McElroy at 303-651-8530 or molly.mcelroy@ci.longmont.co.us
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Requirements by Program
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| Click on link for detailed descriptions of requirements |
Down Payment Assistance
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Community Housing
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| Meet Income guidelines |
X
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X
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| Income re-certification (after 6 months) |
X
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-
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| Income re-certification (after 1 year) |
-
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X
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| Qualify for a first loan (mortgage) |
X
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X
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| Submit application fee |
X
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X
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| Must be a first-time homebuyer |
X
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-
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| Agree to a Period of Affordability |
-
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X
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| Complete a Home Ownership Training Course |
X
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X
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| Attend a one-on-one budget session (prepurchase counseling) |
X
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X
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| Owner-occupy property |
X
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X
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| Complete a property inspection and provide report before closing |
X
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-
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| Complete a property appraisal and provide copy |
X
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X
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| Contribute at least $2,000 of own funds |
X
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X
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| Meet asset limits (*Assets vary by program) |
X
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X
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| Complete Owner's Acknowledgement of Acquisition form |
X
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-
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| Non-occupying co-borrower allowed |
X
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-
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Income Guidelines -- Annual household income from all sources for all household members cannot exceed 80% of The U.S. Dept. of Housing and Urban Development’s (HUD) Area Median Income. Income from all household members is considered regardless of who is listed on the title and/or mortgage. Below are the current year’s income limits for Boulder County and income sources that will be calculated. If a borrower
has a non-occupying co-borrower on their first loan (allowed by DPA program only), that co-borrower's income
will not be counted if that person provides a signed statement verifying that
they will not occupy the property and will not contribute to the household expenses. All co-borrowers will be listed on the City of Longmont's deed of trust and promissory note for the loan and will be legally responsible for the repayment of the loan.
Boulder County Income Limits |
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| Household Size | 1 person |
2 person |
3 person |
4 person |
5 person |
6 person |
| Max. Income per Household at 50% AMI= | $31,200 | $35,650 | $40,100 | $44,550 | $48,100 | $51,700 |
| Max. Income per Household at 80% AMI= | $44,800 | $51,200 | $57,600 | $64,000 | $69,100 | $74,250 |
Gross income is the combined household income which includes, but is not limited to, job earnings, Social Security and Social Services income (for all in household), TANF, VA benefits, unemployment income, military pay, worker’s compensation payments, child support, alimony/maintenance payments, income from pensions or retirement plans, stocks, etc. Employment income will be counted for all household members (age 18 and older) who will live at the property. Income in excess of $450 for full time student over the age of 18 will be excluded from income calculations. This limit does not apply to a student who is the head of household or their spouse. When this is the case, their full income must be counted. Failure to report household income is considered fraud and can have serious consequences, including disqualification from program.
Income Calculation -- A “snapshot” of current income is taken at the time the application is submitted (based on current month’s pay stubs, a verification of employment completed by the applicant’s employer, and year-to-date earnings and documentation of all other sources of income), and is projected for the next 12 months. All known and/or anticipated income to be received throughout the year including bonuses, pay raises, etc. must be disclosed. Failure to report all household income is considered fraud and can have serious consequences, including disqualification from program.
Asset Guidelines -- Assets include, but are not limited to, checking and savings accounts, money market accounts, and retirement accounts. For the down payment assistance program, an applicant may not have more than 80% of the area median income in assets including down payment. For the Community Housing Program, an applicant may not have more than 80% of the area median income in assets excluding down payment. Note: retirement accounts, such as IRA, 401K, stocks, etc are considered assets, however, withdrawal penalties and taxes may be taken into consideration. The interest/dividends from retirement accounts is added to the income calculation. Asset limits may be increased for households with members age 55 and older.
Boulder County Asset Limits |
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| Household Size | 1 person |
2 person |
3 person |
4 person |
5 person |
6 person |
| Max. Income per Household at 50% AMI= | $31,200 | $35,650 | $40,100 | $44,550 | $48,100 | $51,700 |
| Max. Income per Household at 80% AMI= | $44,800 | $51,200 | $57,600 | $64,000 | $69,100 | $74,250 |
Income/Asset Re-certification after 6 months (for Down Payment Assistance applicants only) -- Recertification must occur for down payment assistance applicants who have not closed on a property within six months of initial eligibility approval. Recertification is required regardless of whether a purchase contract has been signed and will occur every six months until closing. If an applicant is deemed over the income and asset limits after recertification, down payment will not be provided.
Income/Asset Re-certification after 1 year (for Community Housing applicants only) -- Community Housing Program applicants, who have not signed a purchase contract on a property within one year of initial eligibility approval, must have their income and assets recertified. If a signed purchase contract falls through and another contract is not signed within one year of initial eligibility approval, income and assets must be reverified. Please note: An applicant applying for down payment assistance, must also have income and assets recertified every six months after initial certification (see above) until closing.
First Loan -- An applicant must qualify for a first mortgage, with a lender of their choice, large enough to purchase the intended property. The City of Longmont does not accept subprime loans, interest-only loans, or adjustable-rate mortgages. Program staff reserves the right to deny eligibility based on the terms of any loan.
Application Fee -- A nonrefundable $25 processing fee is required for all applicants. The check should be made payable to the City of Longmont. Cash and credit cards are not accepted.
First Time Homebuyer (for Down Payment Assistance applicants only) -- An applicant interested in down payment assistance must be a first-time homebuyer. A first-time homebuyer is defined as a person who has not owned a property for the past 3 years. Exceptions are made for newly-divorced single persons/parents (within the past 3 years).
Period of Affordability/Deed Restriction (for Community Housing applicants only) -- All affordable properties include a Period of Affordability. Once purchased, a Covenant/deed restriction is placed on the property to keep it affordable for a minimum of 10 years. If the property is sold during the Period of Affordability, the sales price can be no more than the Maximum Resale Price as determined by the City. The property must also be sold to a qualified household.
If a home is sold a after the Period of Affordability a payment equal to 25% of the total actual appraised value at the time of the sale, less the original purchase price (minimum $5,000 payment required) must be made to the Affordable Housing Program. This payment will be used for other affordable housing programs within Longmont.
Home Buyer Training Course (both programs) -- All applicants must attend a CHFA-approved homebuyer training course. In Boulder County, this is a free one-day course that covers working with real estate agents and lenders, credit issues, contracts and inspections, home maintenance, and budgeting. It must be completed before a purchase contract is signed for the Boulder County Down Payment Assistance Program and before a Certificate of Eligibility will be issued for the Community Housing Program.
Registration is required, to register by phone call 720-564-2279, or you can register on-line (offsite link to Boulder County Housing Counseling website).
Translation services are available. Please call 720-564-2279 at least one week in advance of the class to request translation. See course schedule, or call the Boulder County Housing Counseling Program at 720-564-2279 with questions. Other approved classes may be found at www.colohfa.org.
One-on-One Budget Session (Prepurchase Counseling) (both programs) -- Once an applicant is determined to be income and asset-eligible, they will meet with a housing counselor. The counselor will review the first and second (DPA) mortgages to ensure the terms are understood and the loans are in compliance with City guidelines. The applicant must bring to this meeting, a completed Form 1003 (loan application), Good Faith Estimate, Truth- in-Lending statement, a current budget, and a budget showing your future financial situation. The City of Longmont does not accept subprime loans, interest-only loans, and adjustable-rate mortgages. Program staff reserves the right to deny eligibility for an applicant based on a negative recommendation by the housing counselor or on the terms of your loan. If you are denied eligibility, the housing counselor will work with you to determine an action plan so you may qualify for the program(s) in the future.
Owner Occupancy (both programs) -- All homes purchased through the Affordable Housing Programs must be the sole residence of the buyer, be continuously occupied, and may not be rented. Staff will verify your occupancy every year. If you are no longer living there, the remaining balance of any loan will be due or the deed restrictions/covenants on the property will be invoked. You may not own any other habitable property in addition to this property.
Property Inspection (Down Payment Assistance only) -- An inspection by a 3rd party inspector must be completed on the property and the report submitted to the City of Longmont before closing. Any safety and health hazards and all Housing Code violations listed in the report, as determined by the Uniform Housing Code, must be fixed and documentation of the repairs provided to the City of Longmont before closing.
Lead-Based Paint (Down Payment Assistance) -- If a property was built before 1978, the property must pass a visual inspection for any chipped, pealing, flaking or otherwise deteriotating paint (required form provided by the City of Longmont). If there is deterioration, the house must be tested for lead-based paint. If the home tests positive for lead-based paint, an abatement must be done and the house must pass before closing.
Property Appraisal (both programs) -- An appraisal must be completed on all properties and submitted to the City of Longmont before closing. The purchase price may not exceed the appraised value of the property. Market-rate comparables are to be used, and for the Community Housing Program, appraisals should indicate the affordability period.
Minimum $2,000 Contribution -- As of February 1, 2009, all home buyers must contribute at least $2,000 to the purchase transaction. This is usually put in the form of earnest money; however, other fees such as inspection and appraisal payments may be considered. A lender and/or development may require more. A homebuyer may not receive any cash back at closing even if they put more than the required minimum of $2,000 down.
Owner's Acknowledgement of Acquisition Form (Down Payment Assistance only) -- This form verifies that the property was either vacant or owner-occupied at the time the contract was signed and must be signed by buyer and the seller. A completed form must be provided to the Affordable Housing Program staff prior to closing. Down payment assistance may not be used for buyers purchasing properties that displace tenants.
Non-Occupying Co-Borrower (both programs) -- Co-borrowers are not allowed for buyers participating in the Community Housing Program.
For applicants applying for the Down Payment Assistance program only, co-borrowers may be accepted. The co-borrower must provide a written signed statement verifying that they will not reside at that property, and their income will not be counted. All co-borrowers will be listed on the deed of trust and promissory note for the loan and will be legally responsible for the repayment of the loan.
Other Important Information
Certificate of Eligibility (Community Housing Program) --This Certificate, valid for one year, is issued to qualified applicants (with or without down payment assistance). A sales contract cannot be signed (reservations or reservation agreements are not allowed), before you receive a Certificate of Eligibility. A sales contract signed before a Certificate of Eligibility is issued may be deemed invalid.
Buyers' Preferences/Priorities (Community Housing Program) -- Priority for the Community Housing Program is given to those employed or residing in Longmont. Buyers may only purchase a home with one more bedroom than the number of people in the household.
Current Homeowners (Community Housing Program) -- Current homeowners must sell their current habitable property before a Certificate of Eligibility (allowing a purchase contract to be signed) will be issued.
Upgrades (Community Housing Program) -- Upgrades (such as for carpeting or pads, tile, cabinets, etc.) are allowed, but they must be paid for separately before the closing and cannot be reflected on the Settlement Statement (the purchase price of the home may not increase). Upgrades must be approved by the City in advance. The cost of any upgrades will be subtracted from any down payment assistance for which an applicant may be eligible. See Upgrade Policy for more information.
Assessment Information (Community Housing Program) –- The Boulder County Assessor’s Office will assess the property at the affordable price with a note in the file addressing the affordability factor. Homeowners will only be taxed for the restrictive affordable value of the home during the Period of Affordability.
Commission for Real Estate Agents (Community Housing Program) –- Each developer has a choice of whether to offer a commission and if so, how much. Program staff encourages homebuyers to use a real estate agent. An agent must accompany a homebuyer on their first visit to the development in order to be eligible for a commission.
Documents to Sign at Closing (Community Housing Program)
Affordable Housing Restrictive Covenant and Agreement -- This Agreement, between the buyer and the City, explains the affordability covenants by which the buyer must comply, including occupancy requirements, rental restrictions, the Maximum Resale Price calculation, eligible capital improvements.
Agreement Regarding Affordable Owner-Occupied Housing -- This Agreement, between the buyer, the developer, and the City explains the reduction in building permit and other development fees that a developer received for providing affordable housing.
Contact Information
Contact Molly McElroy with any questions on both programs or your application status, at 303-651-8530 or molly.mcelroy@ci.longmont.co.us.
TDD service for those individuals with hearing and speech disabilities is available through Colorado Relay Service at 1-800-659-3656.
Equal Opportunity
In accordance with the provisions of the Equal Opportunity Act and the Program's
policies, there will be no discrimination against an applicant for these funds
on the basis of age, source of income, sex, race, marital status, sexual orientation,
national origin, religion or handicap. If you need special accommodations
to enable you to apply for, or to access this assistance, please call 303-651-8530.