Buying your first home in West Durango can feel out of reach, especially when down payment and closing costs add up fast. You’re not alone, and you have options. Colorado Housing and Finance Authority (CHFA) programs can help bridge the gap so you can buy a primary residence with a manageable budget. This guide explains CHFA basics, what to bring and ask a lender, and the West Durango details that can affect financing and affordability. Let’s dive in.
CHFA at a glance
CHFA is Colorado’s housing finance agency. It partners with local lenders to offer first mortgages and down‑payment or closing‑cost assistance to qualified buyers. You apply through a CHFA‑approved lender, and the loan is for owner‑occupied homes only.
Common options you’ll hear about:
- CHFA first mortgage (conventional): A fixed‑rate mortgage for a primary residence, often paired with assistance.
- CHFA first mortgage (FHA/VA/USDA): Some government‑backed products may be available through CHFA‑approved lenders.
- Down‑payment assistance (DPA): Comes as a second mortgage or grant that can be deferred, forgivable over time, or repayable at a low rate.
- Homebuyer education: Many assistance options require a CHFA‑approved course or counseling.
Program details like income limits, price caps, DPA amounts, and credit requirements change. Always confirm current numbers for La Plata County with CHFA and a CHFA‑approved lender.
Who typically qualifies
CHFA products generally serve low‑ to moderate‑income buyers who plan to live in the home. Expect:
- Primary residence requirement.
- Income and purchase‑price limits that vary by county and household size.
- Minimum credit score and reasonable debt‑to‑income (DTI) standards.
- A common definition of first‑time buyer as no homeownership in the past 3 years. Some exceptions may apply. Confirm with your lender.
How CHFA works with your lender
You must work through a CHFA‑approved lender. They originate and underwrite your loan to CHFA guidelines, lock your rate, and apply the DPA if you qualify. Some CHFA products may include slightly different interest rates or credits when paired with assistance. Ask your lender to compare CHFA and non‑CHFA options side by side.
What to bring to your first lender meeting
Arrive prepared so you can move quickly on a West Durango home:
- Photo ID and Social Security numbers for all borrowers.
- Last 2 years of signed tax returns and W‑2s.
- Most recent 30 days of pay stubs and proof of other income if applicable.
- 2–3 months of bank and investment statements.
- Documentation for gift funds or other down‑payment sources.
- If self‑employed: profit and loss, 1099s, and tax filings for 2 years.
- Current rent payment history and ID for any co‑borrowers.
Smart questions for a CHFA lender in Durango
Use this list to focus your conversation:
- Are you a CHFA‑approved lender, and which CHFA products are available in La Plata County?
- What are today’s CHFA income and purchase‑price limits for my household size?
- Which DPA options fit me, and are they deferred, forgivable, or repayable?
- Do I need homebuyer education? Which providers are approved?
- What minimum credit score and DTI do you require for this CHFA product?
- Are CHFA rates fixed? Can I use a rate buydown, and how do CHFA rates compare to non‑CHFA loans right now?
- Can I combine CHFA assistance with gift funds or local employer/city programs?
- How does the DPA work when I sell or refinance? Are there recapture or repayment rules?
- What are estimated closing costs? What can be financed or covered by seller or lender credits?
- Will you provide a pre‑approval letter with loan type, price range, and estimated monthly PITI?
West Durango realities that affect financing
West Durango generally includes neighborhoods west of downtown with a mix of single‑family homes, townhomes, and newer subdivisions. Entry‑level inventory can be limited, and well‑priced homes can move quickly. If you plan to use DPA, be ready with documents and pre‑approval so you can write a timely, strong offer.
Utilities and water/sewer
Confirm whether the home uses municipal water and sewer or a private well and septic. Lenders, appraisers, and insurers review these differently. Your agent should help verify system type and any recent testing or permits.
Access and roads
Seasonal access, county road maintenance, and HOA road rules can affect appraisal, title, and insurance. Ask your agent and lender about any requirements tied to private or seasonal roads.
Wildfire risk and insurance
Parts of La Plata County carry elevated wildfire risk. Insurance availability and cost can influence monthly affordability and underwriting. Ask about defensible space, mitigation steps, and how insurance quotes may affect your approval.
Energy and elevation
Higher‑elevation or older homes may have higher heating costs. Some buyers explore energy‑efficient financing or weatherization options. Ask your lender what CHFA currently permits related to energy improvements.
Older homes and repairs
Many Durango areas include older homes. Appraisals or inspections may call out repairs, such as foundation or electrical items. Build time into your contract for repairs your lender may require before closing.
Condos and manufactured homes
Condo projects may need additional approval, and manufactured homes are treated differently by many lenders. If you’re targeting either, tell your lender upfront so they can confirm CHFA and property‑type requirements.
Down payment and closing cost basics
One of CHFA’s biggest benefits is reducing upfront cash. DPA can cover part or all of your down payment and some closing costs, depending on the specific program. The structure matters:
- Deferred second mortgage: No monthly payment while you live in the home; typically due when you sell or refinance.
- Forgivable second mortgage: A portion may be forgiven after a set number of years if you meet occupancy rules.
- Repayable second mortgage: Low interest with a required monthly payment.
Confirm the exact DPA type, amount, and any repayment or forgiveness terms with your lender.
Step‑by‑step path to a CHFA purchase
- Locate a CHFA‑approved lender and request a CHFA pre‑approval discussion.
- Complete any required CHFA homebuyer education early.
- Gather the documents above and secure a written pre‑approval with estimated monthly payment and maximum price.
- Work with a local agent to target West Durango neighborhoods and property types that align with CHFA eligibility.
- Before you write an offer, confirm how your DPA will be applied, what seller credits are allowed, and whether any appraisal or repair items could delay closing.
Timeline expectations
Your timeline will look similar to most mortgages: pre‑approval can take days, and underwriting to close often runs 30 to 45 days. Allow extra time if repairs, condo reviews, or additional DPA documentation are needed. Good communication between your lender, agent, and CHFA keeps things on track.
Work with a local guide
A local, hands‑on approach makes a difference in West Durango, where utilities, wildfire considerations, HOAs, and older‑home quirks can affect financing. Alicia Romero at LiveInDurango pairs neighborhood knowledge with careful coordination between you, your lender, and the seller so you can move forward with confidence.
Ready to explore CHFA options and a plan for your first home? Connect with LiveInDurango to map your financing path, preview West Durango homes, and align your offer with program rules. Start your move: request a home valuation.
FAQs
What is CHFA and how does it help first‑time buyers?
- CHFA partners with approved lenders to offer first mortgages and assistance that can reduce your down payment and closing costs on a primary residence.
How do I know if I meet CHFA income and price limits in La Plata County?
- Limits change and vary by household size. Ask a CHFA‑approved lender to verify the latest La Plata County numbers for your situation.
Can I combine CHFA assistance with gift funds from family?
- Many CHFA programs allow gift funds with proper documentation. Your lender will confirm acceptable sources and what paperwork is required.
Will CHFA work with condos or manufactured homes in West Durango?
- It depends on the product and property. Condos may require project approval, and manufactured homes have different rules. Confirm early with your lender.
What happens to my DPA when I sell or refinance?
- It depends on the DPA type. Deferred seconds are usually due at sale or refinance, while some forgivable seconds may forgive after a set period if you meet occupancy rules.
How long does it take to close with CHFA?
- Timelines are often 30 to 45 days after contract, similar to other loans. DPA paperwork and repairs can extend that, so plan accordingly.
