Down Payment Assistance

Loan Terms

• For households earning between 61-80% Area Median Income (AMI): 2% interest loan amortized over a period of 30 years. This loan requires payments. Full repayment is required upon the sale or refinance of home, if there is a change of ownership, or the home is no longer the owner’s primary residence.
• For households earning below 60% Area Median Income (AMI): Deferred loan. No monthly payments and 0% interest. The loan is repaid at due the sale or refinance of home, if there is a change of ownership, or the home is no longer the owner’s primary residence.

How to Apply for Down Payment Assistance

1. Join the Waitlist: To receive a link to the DPA program application, you must join the waitlist.)
2. Contact a Mortgage Lender: Choose a lender, submit required documents to the lender, and receive mortgage loan pre-approval. The City of Longmont requires a Pre-Approval Letter and a copy of a Loan Application (also known as Form 1003) as part of the DPA program application. You may use any lender you choose.
3. Take CHFA Homebuyer Education Class: DPA applicants must complete a CHFA-approved Homebuyer Education Class prior to going under contract on a home. The class will provide information about the home purchase and closing process. Workforce Boulder County offers free CHFA-approved classes. You can view other class options on CHFA’s website.
4. Attend a Free Personal Finance Coaching/Homebuyer Counseling Session: DPA applicants must complete at least one personal finance/homebuyer education session through the Boulder County Personal Finance Program.
5. Finalize Eligibility: After submitting a complete DPA application and all required documents, City of Longmont staff will determine your eligibility approximately 10 business days after receiving all required documents.
6. Shop for a Home: The City of Longmont recommends you choose a licensed real estate agent to assist in your homebuying process. You can choose any agent you wish to work with. Additional property requirements apply, please review property requirement below before you submit an offer on a property. Once you have signed a signed contract to buy a home, the City will review the contract, inspection, loan, and all other transaction documents. If these items meet program requirements, the City will issue you a Loan Commitment Letter. Once you have received final loan commitment, you are eligible to purchase/close on the home. At closing, you will sign documents prepared by the City of Longmont, including the Deed of Trust, Promissory Note, and other documents as needed. Homebuyers who are interested in using the program must be determined eligible prior to signing a purchase contract. Due to federal regulations that the program operates under, there are requirements that must be met prior to a homebuyer entering into a purchase contract.
7. Recertify: DPA program eligibility is valid for 6 months. At the end of 6 months, you may recertify for free. Recertification materials are due within 14 days of the eligibility period expiration date. It’s recommended to plan ahead. Staff require approximately 10 business days to process recertification once all documents are received.

Please read the below requirements to learn both your requirements and property requirements for the program.

If you have questions, please katie.sylvis@longmontcolorado.gov or call 303-774-4509.

Homebuyer Requirements

• Gross (before taxes) household income must be at or below 80% Area Median Income (AMI) for Boulder County (see Income and Asset Limits page). Household size includes everyone who will be living in the home. Household income will include all income regardless of who may be listed on the title and/or mortgage.
• Meet asset requirements. Liquid assets must be exhausted down to a limit of $50,000 by the time of closing in order to qualify for the program. This liquid asset limit excludes: retirement accounts (e.g., pension, 401(k), IRA, etc.), college savings plans (e.g., 529 account), life insurance policies, or health savings accounts recognized by the Internal Revenue Service.
• Qualify for a primary mortgage large enough to afford the property (co-borrowers permitted). The City does not accept subprime, interest-only, or adjustable-rate mortgages.
• Total combined housing debt (first mortgage and all subordinate financing) may not be more than 100% of the value of the property at the time of closing. This may require the homebuyer to contribute more than the minimum required contribution (see below).
• Contribute a minimum of $2,000, or 1% of purchase price (whichever is greater) of your own funds (specific lenders and/or developments may require more). Households with liquid assets above $50,000 are required to contribute a larger portion of their assets to the purchase transaction.
• You must live in the home as your primary residence. You may not own other property.

Property Requirements

• The home must be owner-occupied or vacant at the time the purchase contract is signed. The program may not be used to purchase a home that will displace any tenants. Homebuyers may purchase the home that they are renting.
• Homes must pass a third party inspection. Any health and safety concerns and/or code violations, as determined by the City, must be fixed and verified via documentation provided to the City prior to closing. Review the Property Inspection Requirements for more details.
• Homes located in the 100-year or 500-year floodplain may not be eligible, depending on funding source.

Boulder County Common Application Packet

This packet may be used to apply for Boulder County Down Payment Assistance Program, and any and all housing programs including the City of Longmont Affordable Housing Programs, City of Boulder, and Thistle Community Housing.

• Boulder County Common Application Packet (English Language PDF)
• Paquete de solicitud común del condado de Boulder (Spanish Language PDF)

Please download the application, complete all forms, include all required documentation, and submit it along with the application fee to:

City of Longmont CDBG Office
350 Kimbark St.
Longmont, CO 80501

Incomplete applications cannot be fully processed and will delay determining your eligibility for the program.

Equal Opportunity: In accordance with the provisions of the Equal Opportunity Act, there will be no
discrimination against an applicant for these benefits on the basis of age, source of income, sex, race, marital status, sexual orientation, national origin, religion, or handicap.

Reasonable Accommodation: If you or a member of your household is an individual with a disability, you have the right to request reasonable accommodation for that disability. The City of Longmont is committed to assuring that each individual has an equal opportunity to the use and enjoyment of the benefits of this program. For more information, contact the Rehabilitation Program at 306-774-4648.

TTY service for those individuals with hearing and speech disabilities is available through Colorado Relay Service at 1-800-659-3656.