Housing Authority of the City of Colorado Springs
831 S. Nevada Ave
P.O. Box 1575, MC 1490
Colorado Springs, CO 80901-1575 
719-387-6700; Fax - 719-632-7807; TDD - 800-659-3656

Revised 02/14/2008

Eligible applicants:

¨       First time homebuyers (or must not have owned a home in the last 3 years)

¨       Annual household income may not exceed 80% of median income for El Paso County (see chart below showing 80% of median income adjusted for family size)

¨       Applicant must meet lender’s usual guidelines for obtaining an “A” paper mortgage loan

¨       Minimum of two persons in the family (1 person households considered on case-by-case basis)

¨       Buyers as well as co-signers must occupy the property as a primary residence

¨       All household income must be considered

¨       Buyers must have a minimum of $1,000 of their own funds to invest in the transaction (this $1,000 may be in the form of earnest money and/or up front lender’s fees)

¨       Must attend a first time homebuyer’s workshop (prior to closing), HUD certified program is required

¨       Must have a credit approval letter from lender before applying for assistance with the Housing Authority.

Loan terms:

¨       Up to $10,000 @ 1.5% for 30 years.  Monthly payments are $34.54 per month on $10,000; $25.88 on $7,500; $17.27 on $5,000; and $8.63 on $2,500

¨       Loan amount may not exceed $10,000

¨       Recalculation of interest rate for early sale or refinance

¨       The first mortgage, when combined with second mortgage, as well as any other mortgages, grants, etc., may not result in cash back to borrower.  The sum of all financing may not exceed 100 percent of the cost to acquire the property plus any normal prepaid expenses

¨       No fees are associated with the Housing Authority loan.

Funds may be used to cover the following costs:

¨       Borrower’s reasonable closing costs (can include 1% LOF, and 2-1 buy down), but not lender’s discount points or buy down fees, or to pay off debt to qualify for first mortgage

¨       Pre-paids

¨       Down payment

¨       Funds may be used with CHFA’s MRB FirstStep Program or the El Paso County Bond Program

Funding:

¨       Funds are on a first come, first approved, first closed basis

¨       Funds may be limited from time to time

¨       Funding may be for specific target areas within the County of El Paso, or for assistance only in Colorado Springs city limits

¨       Purchase price cannot exceed $180,000 for existing homes or new construction

Lender participation and information:

¨       Any lender who can provide “A” paper loans (FHA, VA,  conforming Conventional), fixed rate only

¨       Lender must pre-qualify and credit approve applicant as “A” paper (borrowers with credit scores under 600 will be reviewed on case by case basis).  Letter must be provided to the Housing Authority confirming status prior to appointment with Housing Authority

¨       Certification of applicant’s $1,000.00 commitment must be provided

¨       Contact Judy at 387-6714 for questions, appointments, and documents required.