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Attention Homebuyers
Denver - The Colorado Housing and Finance Authority (CHFA) announced today that first-time homebuyers throughout the state will be able to take advantage of $24 million in low-interest mortgage financing with excellent benefits to the borrower. In addition to a fixed low interest rate, homebuyer may take advantage of 3% cash assistance that can be used for down payment in closing costs, free homebuyer education classes, and a 12-month home warranty offered at no cost to the buyer. The interest rate for this financing will be fixed at 7% for 30 years.
In addition, CHFA's home financing makes available a cash benefit of 3 percent of the loan to the borrower to help pay for down payment and closing cost. This does not have to be repaid. The cash assistance helps those who can afford the monthly mortgage payment, but are having trouble savings for the up front costs required in the purchase of a home. Another feature of CHFA loans is a one-year home warranty provided to each borrower of an existing home, also at no cost to the borrower. The home warranty provides financial protection against problems encountered with the home's mechanical systems and major appliances.
"Often a buyer can afford the monthly payment, but has been unable to save for the down payment and closing costs or set aside money to cover unexpected problems that frequently arise in a home," said CHFA Home Finance Director Karen Harkin. "For those people, the cash assistance and the home warranty will be very helpful. The home warranty can frequently prevent a homebuyer from missing mortgage payment when unexpected situation arise, such as a broken water heater.
"All of CHFA's loans are now serviced by CHFA's loans are now serviced by CHFA. This allows a homebuyer to have the opportunity to meet face-to-face with a servicing representative should question arise regarding their loan payment. "We believe that each borrower should have the opportunity to meet directly with the person servicing their loan if they have questions about it," Harkin said.
"This gives borrowers flexibility and accountability, something fist-time buyers often need." To access CHFA financing, homebuyer must take a free homebuyer education class prior to closing the loan. These classes are available throughout the state at no cost to the borrower. To receive a brochure with information on the financing and the names of participating lenders, or to request a list of homebuyers classes, call CHFA at 303-297-7376; toll-free at 800-877-CHFA, ext. 376; or TDD 303-297-7305, ext. 376. That information can also be obtained from the CHFA website at www.colohfa.org.
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