Grants and subsidized interest rates are strictly reserved for primary residences:
CHFA (Colorado Housing and Finance Authority): Offers preferred interest rate programs and down payment assistance/grants for Colorado residents, including programs tailored for individuals with disabilities receiving SSDI/SSI income.
City of Denver Housing Programs: Denver's Department of Housing Stability (HOST) offers Single-Family Home Rehabilitation and Home Accessibility Modification grants/low-interest loans specifically for residents with disabilities needing home improvements or accessibility retrofits.
Fannie Mae HomeReady / Freddie Mac Home Possible: These traditional loan products allow non-occupant co-signers and count disability income to help qualify for reduced interest rates and lower down payments.
2. Rental Property Options
Government grants and subsidized rates do not exist for investment/rental properties. For rental properties in Denver, you have to look at private/alternative financing:
DSCR Loans: If you are buying or refinancing a rental, Debt Service Coverage Ratio (DSCR) loans qualify you based on the property's rental cash flow rather than personal income or disability documentation.
Tapping Equity (HELOC / Cash-Out Refi): If you already own equity in a primary home or another rental, pulling a streamlined HELOC or cash-out refinance is often the most cost-effective way to fund a rental property purchase or renovation.
Hope this local breakdown helps guide your search!
Grants and subsidized interest rates are strictly reserved for primary residences:
CHFA (Colorado Housing and Finance Authority): Offers preferred interest rate programs and down payment assistance/grants for Colorado residents, including programs tailored for individuals with disabilities receiving SSDI/SSI income.
City of Denver Housing Programs: Denver's Department of Housing Stability (HOST) offers Single-Family Home Rehabilitation and Home Accessibility Modification grants/low-interest loans specifically for residents with disabilities needing home improvements or accessibility retrofits.
Fannie Mae HomeReady / Freddie Mac Home Possible: These traditional loan products allow non-occupant co-signers and count disability income to help qualify for reduced interest rates and lower down payments.
2. Rental Property Options
Government grants and subsidized rates do not exist for investment/rental properties. For rental properties in Denver, you have to look at private/alternative financing:
DSCR Loans: If you are buying or refinancing a rental, Debt Service Coverage Ratio (DSCR) loans qualify you based on the property's rental cash flow rather than personal income or disability documentation.
Tapping Equity (HELOC / Cash-Out Refi): If you already own equity in a primary home or another rental, pulling a streamlined HELOC or cash-out refinance is often the most cost-effective way to fund a rental property purchase or renovation.
Hope this local breakdown helps guide your search!
Scottsdale, AZ · Member since 2019 · 434 posts · 248 votes
1mo
@Alec Don Westerman Something to keep in mind regarding Grants and Down payment assistance loans. Virtually every Down Payment Assistance (DPA) program I have seen comes with a catch - they all have above market interest rates.
VA loans have 0% downpayment required, if you have a disability rating there is no VA funding fee. Take a strong look and getting a traditional VA loan to get the best interest rate and pricing possible. It is fairly easy to ask for seller paid closing costs, so you can walk into a new primary home with little to nothing spent on your end.
If you get a DPA because it sounds nice to have 3%-5% additional downpayment, read the fine print. Is the interest rate and discount points (added closing costs to buy the interest rate down) higher then a normal VA loan? Can you refinance or sell the home at any time, without worrying about the terms and restrictions of the grant/DPA? Those are very real considerations.
For VA - any time I stack a DPA against a normal VA loan, the better rates and pricing of a normal VA loan wins almost every time.
Thanks again Zach! Looks like I might have gotten lucky for now and the CHFA loan might reduce interest rates if we do it with enough down for now. Wish I could qualify as a vet but don't unfortunately.