EAGLE, Colo., Aug. 13 -- Eagle County issued the following news release:
Prospective homebuyers may qualify for more assistance from Eagle County's Down Payment Assistance (DPA) Program, thanks to an increase in the maximum loan amount. Loans of up to $15,000 are now available through the program. Previously, the amount was 2.5 or 3.5 percent of the purchase price, depending on the home.
"DPA loans of up to $15,000 will help Eagle County homebuyers bridge the final financial gap many encounter when trying to purchase a home," said Nick Brinkman, Senior Vice President at FirstBank and Home Buyer's Assistance Committee (HBAC) member, the volunteer board that advises Eagle County on its DPA programs.
Eagle County DPA loans are designed to complement most first mortgage products and are recorded subordinate to first mortgages. Borrowers must meet all qualifications required by their first mortgage lenders, as well as agree to live and work in Eagle County and maintain the home as their sole and primary residence while the DPA loan is outstanding. DPA borrowers must also contribute cash at closing equal to at least 50 percent of the DPA loan amount. For example, to qualify for a $15,000 loan the borrower must contribute $7,500.
The timing of the loan increase coincides with current relatively low home prices and interest rates. "We want to assist Eagle County residents in taking advantage of our real estate and lending environments while they are still buyer friendly," said Laurie Slaughter of Berkshire Hathaway and HBAC member. "The fund has received quite a few repayments over the last 18 months and we would rather see that money help more people purchase homes than sit in the bank," she said.
Eagle County developed the DPA Program in 1998. Over its 16-year history, the program has received contributions from a variety of local public and private entities. The fund is now revolving, so when a DPA borrower repays their loan the money goes back into the fund and can be lent to a new borrower.
For more information about Eagle County's DPA programs, visit www.eaglecounty.us/housing or contact Tori Franks at firstname.lastname@example.org.