Log In


Reset Password
Columnists View from the Center Bear Smart The Travel Troubleshooter Dear Abby Student Aide Of Sound Mind Others Say Powerful solutions You are What You Eat Out Standing in the Fields What's up in Durango Skies Watch Yore Topknot Local First RE-4 Education Update MECC Cares for kids

Down payment assistance for local buyers

When it comes to purchasing a home, most prospective buyers suffer from two problems; lack of down payment and too much consumer debt.

With median home prices around $340,000, the down payment required by many loan programs keeps most prospective first-time homebuyers from entering the housing market.

As rents increase, saving for a down payment becomes increasingly difficult. Fortunately, La Plata County residents have a local organization that can help consumers overcome challenges and barriers.

The Regional Housing Alliance (RHA) offers homebuyer education, financial and credit counseling and down payment assistance. First steps to qualify for a loan are to attend one-on-one counseling, a service that helps a family calculate a realistic budget and offers tips for improving credit score or reducing debt.

RHA staff members work with each family to create an individualized homeownership action plan. Afterward, families know what their next steps are to get their financial house in order, qualify for a loan and move into homeownership.

Prospective borrowers also attend a homebuyer education class that covers all aspects of purchasing a home, including how to select a real estate professional, the lending process, household budgeting, homeowner’s insurance, necessary home maintenance and more. The motto of the class is Obtain, Maintain and Sustain! The agency focuses on responsible, planned, successful steps into homeownership.

Both the individual counseling and homebuyer education are free services to anyone in La Plata County who wants to learn more about homeownership, not just those seeking down payment assistance.

Once the education is complete, a qualified buyer may obtain down payment assistance in the range of $10,000 to $25,000.

Another popular program offered by RHA is a “shared appreciation silent second” loan. The loan makes the home more affordable as no payments are made on this loan while the family lives in the home. The goal is to fill the gap between entry-level home prices and what a family can afford. The principal of the loan is paid back to RHA when the homeowner sells in the future, along with a share of the appreciation.

A big boost to the lending program came from a $1 million grant from BP America several years ago. RHA was created by La Plata County, the city of Durango, town of Bayfield and the town of Ignacio, because these entities recognize the need for affordable housing as an important regional issue.

You can learn more about the RHA’s programs at its website at rhalpc.org or call the office at 970 259-1418.

Gina Piccoli is a Realtor at Coldwell Banker Heritage House Realtors in Durango. She can be reached at gina@realestatedurango.com.



Reader Comments