The Eagle County Council of Commissioners recently approved an increase in loan amounts for the Eagle County down payment assistance programs.
The increase is effective immediately and is part of the âBold Solutionsâ initiative offered by the Housing Eagle County team.
A cash contribution of $ 300,000 to the Eagle County Loan Fund will strengthen the existing revolving fund to provide additional loans to qualified borrowers. Eligible borrowers can now take advantage of a down payment assistance loan of up to 5% of the purchase price of a home. The maximum sale price for buying an assisted home was recently increased to $ 750,000, allowing borrowers up to $ 37,500. The buyer’s contribution will be 1% of the purchase price or 50% of the down payment assistance loan amount, whichever is less.
To be eligible for down payment assistance through the Loan Fund, borrowers must earn 75% of their income and work at least 30 hours per week for a business located in Eagle County.
Qualified borrowers can apply for county loan fund down payment assistance through their mortgage lender. Loans have a term of 15 years and are usually repaid in full when the borrower sells. Loans repaid in full during the initial 24 month period will include only the principal amount of the loan.
Repayments that occur thereafter will consist of the principal of the loan plus a share of the appreciation (if any) based on the percentage of the down payment loan over 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 balance plus 3.5% of the equity gain when the loan is repaid.
Eagle County developed the Eagle County Loan Fund Down Payment Assistance Program in 1998 with the goal of bringing the benefits of homeownership to as many residents as possible. Since its inception, the program has provided borrowers with assistance of over $ 8 million, facilitating more than 660 loans to qualified borrowers in Eagle County.
For more information on the county’s housing and assistance programs, visit http://www.housingeaglecounty.com, or email Meghan Scallen, [email protected].