Boulder County DPA for First-Time Homebuyers

In an effort to help residents achieve their dreams of owning a home, the Boulder County Down Payment Assistance Program provides down payment and closing cost assistance to first-time homebuyers purchasing a home in Boulder County (outside of the city limits of Boulder). 


Available Assistance 
The program offers qualifying homebuyers up to 10% of the purchase price (a maximum of $40,000) may be borrowed to put towards the down payment and/or closing costs. For households earning between 61-80% of the area median income (AMI), there is a 3% interest loan amortized over 10 years. For households earning below 60% AMI, the program offers a deferred loan, with no monthly payments and zero interest. The loan is only repaid at the sale or refinance of the home, if there is a change of ownership, or if the home is no longer the owner’s primary residence. 


Eligibility Requirements 
All applicants must be first-time homebuyers who have not owned a home in the previous three years, however, exceptions are made for those who have been divorced. Applicants are required to complete a Home Ownership Training Course before. These course certificates are valid for 12 months from the date of the class and must be valid at the time an application is submitted. They must also meet with the Housing Counselor for a one-on-one budget counseling session. Borrowers must qualify for and secure a first mortgage large enough to afford the property (co-borrowers permitted). Keep in mind that the City does not accept subprime, interest-only, or adjustable-rate mortgages. Buyers must contribute a minimum of $2,000, or 1% of the purchase price (whichever is greater) from their own funds, but households with liquid assets above $25,000 may have to put in a larger portion. The total housing debt (first mortgage and all subordinate financing) may not exceed 100% of the value of the property, which may require the homebuyer to contribute more than the minimum required contribution. 


Property Guidelines 
Properties bought with program funds must serve as the borrower’s primary residence and be located in Boulder County, outside the City of Boulder limits. It must not exceed the program’s purchase price limit of $411,000 for existing homes and $462,000 for newly constructed homes. Keep in mind that the home must be owner-occupied or vacant at the time the purchase contract is signed; the purchase may not result in displacing any tenants. All properties must pass a third-party inspection, and any health and safety concerns and/or code violations must be fixed and documented prior to closing. 

Any homes built before 1978 must have a Visual Lead-Based Paint Assessment completed prior to closing as well. Homes located in the 100-year or the 500-year flood plain are ineligible for the program. 


*Seller-funded down payment programs were eliminated in the Housing and Economic Recovery Act of 2008, but states and local government agencies are still permitted to help borrowers finance their homes with second mortgages and grants. These agencies set different requirements that a borrower needs to meet in order to qualify for the grant programs, such as property location, and purchase price, and income limits.    


Note: All figures mentioned above were accurate at the time of publication and may no longer be current. Visit the program website for updated information.