Eagle County increases limit of down payment assistance loans
In order to be eligible for down payment assistance, borrowers must earn 75% of their income and work a minimum of 30 hours per week for an Eagle County business.
The Eagle County Board of Commissioners recently approved an increase to loan amounts for Eagle County down payment assistance programs.
The increase is effective immediately and is part of the “Bold Solutions” initiative delivered by the Housing Eagle County team.
A $300,000 cash contribution into the Eagle County Loan Fund will bolster the existing revolving fund to provide additional loans for qualified borrowers. Qualified borrowers can now receive a down payment assistance loan of up to 5% of a home’s purchase price. The maximum sale price for home purchases receiving assistance was recently increased to $750,000, allowing borrowers up to $37,500. Buyer contribution will be 1% of purchase price or 50% of the down payment assistance loan amount, whichever is less.
In order to be eligible for down payment assistance through the loan fund, borrowers must earn 75% of their income and work a minimum of 30 hours per week for a business located in Eagle County.
Qualified borrowers can apply for county loan fund down payment assistance through their mortgage lender. Loans have a 15-year term and are typically paid in full when the borrower sells. Loans repaid in full within the initial 24 month period will include loan principal only.
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Repayments that occur thereafter will include loan principal plus a share of appreciation (if any) based upon the percentage of the down payment loan to the original purchase price. For example, if a program loan represents 3.5% of original purchase price, the borrower would repay the original principal balance plus 3.5% of the equity gain at the time of loan repayment.
Eagle County developed the Eagle County Loan Fund down payment assistance program in 1998 in an effort to bring the benefit of home ownership to as many residents as possible. Since its inception, the program has provided borrowers with more than $8 million in assistance, facilitating more than 660 loans to qualified borrowers in Eagle County.