Eagle County increases loan amounts for down payment assistance programs

Eagle County on Monday issued the following press release on the commissioners increasing loan amounts for Eagle County down payment assistance programs:

The Eagle County Board of Commissioners recently approved an increase to loan amounts for Eagle County down payment assistance programs. The increase is effective immediately and is part of the “Bold Solutions” initiative delivered by the Housing Eagle County team in response to the ongoing local housing challenges.

A $300,000 cash contribution into the Eagle County Loan Fund (ECLF) will bolster the existing revolving fund to provide additional loans for qualified borrowers. Qualified borrowers can now receive a down payment assistance loan of up to 5% of purchase price. The maximum sales price for home purchases receiving assistance was recently increased to $750,000, allowing borrowers up to $37,500. Buyer contribution will be 1% of purchase price or 50% of the DPA loan amount, whichever is less.
 
In order to be eligible for down payment assistance through ECLF, borrowers must earn 75% of their income and work a minimum of 30 hours per week for a business located in Eagle County. 
 
Qualified borrowers can apply for ECLF down payment assistance through their mortgage lender. ECLF loans have a 15-year term and are typically paid in full when the borrower sells. Loans repaid in full within the initial 24 month period will include loan principal only. Repayments that occur thereafter will include loan principal plus a share of appreciation (if any) based upon the percentage of the ECLF loan to the original purchase price. For example, if an ECLF loan represents 3.5% of original purchase price, the borrower would repay the original principal balance plus 3.5% of the equity gain at the time of loan repayment. 
 
Eagle County developed its successful Eagle County Loan Fund down payment assistance program in 1998 in an effort to bring the benefit of homeownership to as many residents as possible. Since its inception, the program has given borrowers over $8 million in assistance, facilitating over 660 loans to qualified borrowers in Eagle County. 
 
Housing Eagle County will continue to roll out additional “Bold Solutions” over the next several months to help local residents find long term housing and ease workforce shortages in partnership with The Valley Home Store. More information can be found at www.housingeaglecounty.com 
 
For more information, contact Meghan Scallen at (970) 328-8778 or meghan@valleyhomestore.org.