Homebuyer Assistance Program
For information on becoming a homeowner please visit our Homebuyer section.
Mission
To provide comprehensive housing services in La Plata County, including homeownership preparation and rental needs.
Overview
The Homebuyer Assistance Program includes 3 primary components:
One-on-one Counseling
Clients meet with one of our Housing Counselors to explore homeownership opportunities, identify goals and potential obstacles, and create individualized action plans. Counseling services include: debt management and credit counseling, estimates of loan amounts affordable to the client, pre-qualification and other affordable home purchase loans, and descriptions of those loan products.
Education and Training
The core homebuyer education curriculum includes: assessing buyer readiness, successful budgeting, credit issues, financing a home and the mortgage process, selecting a home, the closing process, and maintaining a home. Recipients receive either a national homebuyer training manual or local manual. Upon completion of the classes, clients receive a Certificate of Completion, which is necessary for obtaining Mortgage Assistance from the Program and is approved by the Colorado Housing and Finance Authority and USDA.
Program staff recruits community volunteers such as loan officers, title company closers and real estate brokers to assist in teaching the homebuyer education classes. All volunteers receive training and certification from the Program.
Mortgage Assistance
The Mortgage Assistance Program provides second deed of trust loans or other loans subordinate to first mortgages, in accordance with the Program Loan Guidelines. Program staff certify incomes of clients as part of the qualification process to receive loans from the Program, affordable home purchase loans from other lenders, and other assistance such as discount-priced Fair Share homes. Income qualification is based on the first mortgage lender qualification and Program rules.
Loan amounts are reviewed quarterly based on Program staff’s analysis of market conditions and entry-level housing availability. Area Median Income is automatically adjusted annually according to HUD rules.
Subject to availability of funding, clients either receive a Loan Commitment letter or are put on the waitlist until funds become available.
- Counsel and educate prospective homebuyers so that they can make prudent decisions and obtain needed resources.
- Provide Mortgage Assistance that makes home purchases more affordable and enable clients to obtain government issued/insured or conventional, fixed-rate home purchase loans.
- Verify and certify incomes of clients who may qualify for other assistance such as the “Fair Share” homes provided through agreements between developers/builders and local governments.
- Help low- and moderate-income households build assets.
- Recycle Mortgage Assistance either through monthly repayments or through shared appreciation mechanisms.
- Stabilize neighborhoods through promotion of affordable homeownership.
- Build partnerships with lenders and community organizations to find programs that enable low- and moderate- income households to qualify for more favorable mortgages.
- Encourage local governments, employers and other potential funders to provide financial resources to continue these services and to provide additional capital for Mortgage Assistance.
The Homebuyer Assistance Services Program is governed by the RHA’s Board of Directors and Loan Committee and guided by the Program Policies and Procedures. The Program is also supported and implemented by the La Plata Homes Fund, Inc.
