Buying a home in Colorado can be a major challenge, especially for educators who may struggle to save enough for a down payment.
The Schools to Home Program has already been helping public school employees cover a large part of their home’s down payment since its launch in July.
“The program came to CHFA through Senate Bill 25-167, and we were authorized to develop a down payment and shared appreciation program for our public school employees in partnership with funding from the Public School Permanent Fund,” Colorado Housing & Finance Authority business development manager Paige Omohundro said.
This allows public school employees to purchase homes where they live and work at a time when the state’s housing costs are high.
“Individuals don't have the ability to have a lot of disposable cash or savings to put towards their down payment, and so by having that larger amount of down payment made available to them through this program, it helps them definitely overcome that hurdle,” Omohundro said.
The Colorado Housing and Finance Authority (CHFA) launched the program with $10 million in state funding, planning to help about 1,200 educators buy a home.
So far, it's helped 87 public school employees.
“Approximately 42% of loans have been made to borrowers in the Denver Metro area, with the remaining supporting borrowers in other areas of the state,” CHFA said.
The program is open to any full-time public-school employees from pre-k to 12th grade making $178,920 a year or less. You do not have to be a first-time home buyer.
It can help cover up to 25% of a mortgage loan to help with a down payment or closing costs.
But there is a catch. If you choose to sell or refinance the home, you have to pay that money back, plus give CHFA a portion of the increase in the home’s value.
“They repay that amount of down payment to us whenever they sell or refinance, as well as a part of that shared appreciation. The increase in value of the home,” Omohundro said.
CHFA said the money that is paid back if someone decides to sell or refinance will be put back into the program so it can be self-sustaining.
"We do require all of those borrowers to take an additional course, in addition to our regular Homebuyer Education course, a course called Understanding Your Financial Commitment. This is to ensure that they understand the program, who's eligible, the repayment that is required of participating in the program, just to ensure they're fully informed and are making educated decisions for themselves," she added.
For more information on the program click here.
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