Down Payment and Closing Costs Assistance in Telluride
Telluride is a small mountain town southwest of Denver, CO. It roughly has a population of under 3,000 people and is considered mainly a vacation and ski resort City. So what options would a first time home buyer in Telluride have? Well good news is that Telluride is considered a rural area so most properties are eligible for USDA financing. Look below for details but USDA is an awesome loan that we would consider one of the best loans in the country. If the home buyer doesn’t qualify for USDA, there are other programs available that can help with closing costs and down payment. Most importantly, these programs are intended for primary residences and cannot be used to purchase a vacation home or investment property. Also, all of these programs will have income limits! If you’re interested in pursuing one of these programs, we can help you figure out what you qualify for.
Program#1 USDA Guaranteed Program
» Program intended for first time buyers and move up buyers who live in rural areas
» Entire City of Telluride, CO is eligible for the USDA Guaranteed Program. Zip code: 81435
» 100% Financing No Money Down + ability to cover closing costs through lender credit
» Very competitive mortgage rates and low mortgage insurance. More competitive than other assistance programs. USDA also usually has lower closing costs than other assistance programs.
» Program has income limits based on County. Income limits for San Miguel County below:
$101,050 Maximum Yearly Income for 1-4 person household
$133,400 Maximum Yearly Income for 5+ person household
Please note that income limits apply for anyone living in the home over the age of 18 even if they will not be on the mortgage. Contact us for more details.
» Minimum credit score 580+
» Must be owner occupied / No 2nd homes or investment properties
» Home buyer counseling NOT required
» No Max purchase price or loan amount
Program#2 CHFA Down Payment Assistance
» Available for first-time home buyers and move up buyers
» Option#1 Standard CHFA FHA loan at 96.5% + a 4 percent Grant to help cover down payment(no repayment required)
» Option#2 Standard CHFA FHA loan at 96.5% + a 5 percent 2nd mortgage to help pay for down payment and some closing costs. No monthly payments on the 2nd mortgage(5%) but the loan will need to be repaid at time of refinance or sale.
» Program has income limits based on County. Income limits for San Miguel County below:
$82,600 Maximum Yearly Income for 1-2 person household
$94,900 Maximum Yearly Income for 3+ person household
» Minimum credit score of 620+
» Minimum contribution of $1,000
» Closing costs usually much higher than USDA. Can be paid by the seller.
» Interest Rates usually much higher than USDA
» Must be owner occupied / No 2nd homes or investment properties
» Home buyer counseling required
CHFA Down Payment Assistance Website
Program#3 San Miguel Regional Housing Authority(SMRHA)
» Down payment and closing costs assistance
» Available for first-time home buyers and move up buyers
» Buyer must contribute 3% of the purchase price or up to $10,000. Assistance is in the form of a 2nd mortgage based on a 15 year term with no monthly payments. Max loan provided by SMRHA is the lower of $10,000 or 5% of the purchase price. Loan needs to be repaid during refinance, sale or transfer of title.
» Option#2 Standard FHA loan at 96.5% + a 5 percent 2nd mortgage to help pay for down payment and some closing costs. No monthly payments on the 2nd mortgage(5%) but the loan will need to be repaid at time of refinance or sale.
» Program has income limits based on County. Income limits for San Miguel County below:
Household Size
1 Person $89,250
2 Person $102,000
3 Person$114,750
4 Person $127,350
5 Person $137,550
6 Person $147,750
7 Person $157,950
8 Person $168,150
» Minimum credit score of 580+
» Minimum contribution of $1,000
» Must be owner occupied / No 2nd homes or investment properties
» Cannot own any other properties at time of purchase
» Home buyer counseling required
» Home Max purchase price of $647,500 / Max loan amount $453,100
San Miguel Housing Authority Website
SMRHA Assistance Program Brochure
Eligible Properties
» Single Family Homes
» New construction
» Duplex
» HUD approved Condos
» Town homes
» HUD approved Manufactured homes / Must be on a permanent foundation
» Properties with Storage buildings/workshops are acceptable
» There is no maximum acreage limit. Property must be typical for the area AND the value of the land should not exceed 30 percent of the property value.
» NO income producing properties. Home based businesses are okay.
» NO Timeshares
» Farms not allowed but farm animals are okay as long as not for income producing purpose