We believe that homeownership is a critical pillar of stability for local families. In an effort to make homeownership achievable, we have started a Down Payment Assistance program as part of the NoCo Housing Fund.
Our goal is to make homeownership more affordable by providing a sizeable down payment to reduce the monthly cost. With our equity share model, monthly principal and interest payments are not required and instead the loan is due upon sale, when the primary mortgage is paid off, or when the property is no longer owner-occupied.
Repayment will include the principal borrowed plus a pro rata share of the recognized appreciation (if any) based upon the percentage of the Foundation Down Payment Assistance (DPA) loan equity share to the original purchase price. The repayment will go back into the NoCo Housing Fund to allow another family realize their dream of homeownership.
To view more details about the repayment and all of the eligibility requirements and loan terms, please view our program criteria.
Frequently Asked Questions:
Who is eligible to borrow?
- Borrowers may not own any other property (residential, commercial, improved, or land)
- The purchased home must be located in Larimer or Weld County
- The purchased home must be the borrower’s primary residence while the loan is outstanding
- Borrower’s income must be at or below 120% Area Median Income for the applicable county the home is located in
- To see more information about borrower eligibility, please see our program criteria
How much money can I borrow and what are the basic loan terms?
- Up to 15% of the home purchase price, with a maximum purchase price of $650,000
- Funds maybe used for down payment, closing costs, and pre-paid items related to the primary loan
- May be stacked with other down payment assistance programs
- Borrower must have a minimum investment equal or greater than 5% of the purchase price
- Maximum term is 30 years
How does equity share work?
Monthly principal and interest payments are not required. The Equity Share DPA loan may be repaid at any time and there is no prepayment penalty. Loan is due upon sale, transfer of title, when the primary mortgage is paid off, or when the property is no longer owner-occupied. Repayments will include principal plus a pro rata share of the recognized appreciation (if any) based upon the percentage of the Foundation DPA loan equity share to the original purchase price.
Equity Share Example:
| Original Purchase Price | $600,000 |
| NoCo Foundation DPA Loan | $90,000 |
| DPA to Original Purchase Price Ratio | 15% |
Payoff Calculation:
| Future Sales Price | $800,000 |
| Gross Appreciation | $200,000 |
| Shared Appreciation ($100,000 x 8.0%) | $30,000 |
| Borrower Realized Appreciation | $170,000 |
| NoCo Foundation DPA Loan | $90,000 |
| Equity Share | $15,000 |
| Total DPA Loan Repayment | $105,000 |
How do I apply?
Interested borrowers should have their mortgage loan officer apply to the Impact Development Fund on behalf of the borrower using this Loan File Checklist. If you have any specific questions, please reach out to info@impactdf.org.
