Q: Do you subsidize infrastructure for developments providing below-market housing?
A: No, we do not provide funding for infrastructure. However, we work with developers providing below-market housing to identify and access state and local grant funding which may be available to support affordable housing development. Please see our land development and design program for more information.
Q: Is it possible to build affordable housing which is also well-constructed and energy efficient?
A: Yes. Some of the most important factors contributing to an energy-efficient home – siding, orientation and air-tight construction – are virtually free. As a developer or builder, taking these factors into consideration during the early site-planning and design phases of a project is critical to keeping costs down while providing quality product. As a potential home owner, look for maximum southern exposure and minimum northern exposure while house hunting, and be sure to ask what to expect to pay for utilities.
Q: Do you sell houses? Do you have a realtor on staff?
A: No. The RHA does not sell houses or have a realtor on staff. The RHA encourages our clients to work with a realtor. We help people buy a house by providing counseling and education – helping get a mortgage, providing down payment assistance, reviewing contracts, etc. When we help people figure out what monthly mortgage amount is affordable to their family we often discuss what kind of product is available, new developments and Fair Share housing opportunities. We do maintain an informal list of affordable houses in the community. Please see our homebuyer assistance program for more information.
Q: I have a lot of debt and a low credit score. Will I ever be able to buy a house in La Plata County?
A: Yes. Our homebuyer assistance programs are designed to help people identify the obstacles to homeownership and create personalized plans to meet the family’s goals.
Q: Is the RHA a HUD Housing Authority?
A: No. The RHA is not a HUD Housing Authority; we are a multi-jurisdicitional regional housing authority under Colorado state law. The RHA does n
Q: Do you provide rental assistance?
A: No. At this time the RHA does not provide rental assistance. Please contact Housing Solutions for the Southwest at 259-1086 for Section 8 and rental assistance programs.
Q: What is considered affordable housing?
A: An affordable mortgage payment for homeownership is about 33% of a family’s gross income. It is important that you are comfortable writing the check every month on your house and have enough money to pay bills, put food on the table, etc. The amount that is affordable to your family may vary depending on the amount and type of debt you have and other factors.
Q: Are there income guidelines to qualify for RHA assistance?
A: The RHA provides a range of homebuyer assistance programs, including education, counseling and mortgage assistance. There is no income qualification for education and counseling. There is an income qualification for financial and mortgage assistance. The income guidelines adjust annually in the spring. Income guidelines vary based on family size. For 2008 the maximum income for mortgage assistance is:
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Maximum Household Income
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Household Size
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|||||
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1
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2
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3
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4
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5
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6
|
|
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125%
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$54,600
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$62,300
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70,200
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$78,600
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$84,200
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$90,500
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Q: Is RHA a part of County government?
A: No. La Plata County is one of the RHA’s government funding partners. The others include the Town of Bayfield, City of Durango and Town of Ignacio. Please see about us for more information on RHA history and organization.
Q: How do I apply for RHA’s programs?
A: The first step to applying for the RHA’s programs is to set up a consultation appointment with one of our Housing Counselors. Please call our office at 259-1418. Or if you are still wondering if you are ready for homeownership feel free to attend an upcoming orientation meeting (see calendar).
Q: What can I do to improve my credit?
A: There are many reasons why people have poor credit. So, the ways to improve your credit vary depending on your situation. Please set up an appointment with one of our Housing Counselors to find out more. Or call Housing Solutions for the Southwest to set up an appointment at 259-1086.
Q: How much savings do I need to buy a house?
A: In today’s market most lenders are requiring between 2-5% of your cash to get a mortgage. You may also want to have some cash in savings as a reserve for once you are in your new home. Please contact one of our Housing Counselors to discuss how we can help.
Q: What is a second mortgage?
A: A second mortgage is a deed of trust and is the most widely used mechanism for controlling the outcome of a resale. A second mortgage fills the gap between what a family can afford and the price of homes on the market. It sometimes increases the amount considered down payment and reduces the monthly payment owed for the family. It is also sometimes referred to as down payment assistance or mortgage assistance.
Q: How does the RHA recapture investments and prevent windfalls?
A: There are a number of ways to recapture the subsidies invested in affordable housing. One mechanism is a second mortgage with a shared appreciation component. This mechanism strikes a balance between the desires of the homeowner who wants to realize appreciation on their home and the need of the housing program to provide additional second mortgages to future clients in an ever-increasing housing market.
