The Eagle County Board of Commissioners recently approved an increase in the amount of loans for Eagle County Down Payment Assistance Programs.
The increase is effective immediately and is part of the Bold Decisions initiative of the Housing Eagle County team.
The cash contribution of $ 300,000 to the Eagle County Loan Fund will supplement the existing revolving fund and provide additional loans to qualified borrowers. Qualified borrowers can now obtain a loan to assist with a down payment of up to 5% of the purchase price of the home. The maximum sale price of a home receiving assistance was recently increased to $ 750,000, allowing borrowers to raise up to $ 37,500. The buyer’s contribution will be 1% of the purchase price or 50% of the down payment assistance loan, whichever is less.
To be eligible for down payment assistance through a loan fund, borrowers must earn 75% of their income and work at least 30 hours per week at a facility located in Eagle County.
Qualified borrowers can apply for assistance in paying the down payment to the county loan fund through their mortgage lender. Loans are for a 15-year term and are usually fully repaid upon sale by the borrower. Loans fully repaid within the first 24 months will include only the principal amount of the loan.
Payments that occur thereafter will include the principal of the loan plus a percentage of interest (if any) based on the percentage of the down payment on the original purchase price. For example, if a program loan is 3.5% of the original purchase price, the borrower will repay the original principal plus 3.5% of capital gains at the time the loan is repaid.
In 1998, Eagle County developed the Eagle County Loan Assistance Program to ensure that as many residents as possible could own a home. Since its inception, the program has provided more than $ 8 million in assistance to borrowers, providing over 660 loans to qualified borrowers in Eagle County.