Colorado First Time home buyer assistance program

The Colorado Housing and Finance Authority just announced a new program where First Time Colorado Homebuyers can get up to $6,000 or 3.5% of a homes purchase price, whichever is less, to cover closing costs and down payment costs.  The full details of the plan are available here and is called the CHFA Jumpstart Program.

How it works

This program is essentially designed to work in conjunction with the $8000 Federal Home buyers tax credit by offering to 'loan' via a second mortgage on the property the $6,000 or 3.5%.  That second mortgage comes with no interest and no payments due until June 30, 2010.  The idea is that first time home buyers will use their Federal tax credit to repay the second mortage to the CHFA.  Buyers must contribute $1,000 of their own money and take a homebuyer education course.

Colorado lawmakers say the program is for a limited time and are not guaranteeing that the program will be renewed next year.  It will apparently depend on the state of the housing market.