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House to Homeownership (H2O) Down Payment Assistance Loan Program

Boulder, Colorado

Last verified
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Income limit

120% AMI

Of area median income; varies by county and household size

Repayment

Shared appreciation

Settled on the terms set by the administering agency

What is House to Homeownership (H2O) Down Payment Assistance Loan Program?

House to Homeownership (H2O) Down Payment Assistance Loan Program is a shared-appreciation loan for homebuyers in Boulder, Colorado.

  • The City of Boulder's House to Homeownership (H2O) Program is a shared-appreciation down payment assistance loan program for first-time homebuyers purchasing a market-rate home within Boulder city limits. The City provides up to $100,000 as a zero-interest, deferred-payment second mortgage. No monthly payments are required for up to 30 years. The loan becomes due in full upon sale, refinance, or transfer of title, plus a share of the home's appreciation proportional to the City's investment. The program is administered on the City's behalf by Impact Development Fund (IDF), a Colorado CDFI.
  • Zero-interest, deferred shared-appreciation second mortgage of up to $100,000 toward the purchase of a market-rate home in Boulder city limits. No monthly payments for up to 30 years.
  • principal plus a percentage of appreciation due at sale, refinance, or title transfer.
  • Funding comes from Local Government and City Affordable Housing Fund.

Do you have to pay it back?

House to Homeownership (H2O) Down Payment Assistance Loan Program is a shared-appreciation loan and is repaid under the terms set by the administering agency.

  • Repayment is triggered by Sale, refinance, or title transfer and no monthly payments for the 30-year term. Principal plus the City's pro-rata share of appreciation is due in full at the trigger event.
  • The assistance is recorded in 2 position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

House to Homeownership (H2O) Down Payment Assistance Loan Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: Divorced applicants within the prior 3 years are exempt from the first-time-homebuyer requirement
  • The home is occupied as a primary residence
  • On credit: Not published by the City; subject to first-mortgage lender underwriting
  • A completed homebuyer education course, through City of Boulder homebuyer orientation; HUD-approved homebuyer education courses required prior to closing
  • Residency: Must work in the City of Boulder; home must be located within City of Boulder city limits and be owner-occupied
  • Citizenship or immigration status: U.S. citizen or qualified non-citizen per first-mortgage lender requirements
  • First-time homebuyer (no homeownership in prior 3 years, divorce exception). Must work in the City of Boulder with at least 1 year of work history within most recent 12 months and 30+ hours/week (unless retired or disabled). Minimum $2,000 buyer contribution. DTI may not exceed 42%. Asset cap (125% of income max) applies; some retirement assets are exempt. Maximum bedrooms may exceed household size by only one. Owner-occupied; rental restrictions apply. Must qualify for first mortgage and complete city orientation plus homebuyer education.

The program excludes

  • Manufactured homes
  • Households above 120% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

House to Homeownership (H2O) Down Payment Assistance Loan Program limits household income to 120% of the area median income, which varies by county and household size.

  • Household income capped at 120% AMI per HUD Boulder MSA. Income max by household size: 1-person $126,600; 2-person $144,600; 3-person $162,720; 4-person $180,720; 5-person $195,240; 6-person $209,640; 7-person $224,160; 8-person $238,560. Asset max equals 125% of income max ($158,250-$298,200). Note: Freddie Mac DPA One reflects an older income table ($111,600-$210,360); current City of Boulder limits are higher.
  • The limit applies to total household income, not only the borrower’s.
  • The program lists a maximum household size of 8.
  • Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

House to Homeownership (H2O) Down Payment Assistance Loan Program caps the purchase price as follows: No fixed maximum purchase price published; loan capped at $100,000 and limited by first-mortgage underwriting and Boulder market rate home values.

  • Eligible property types include Single-family detached, Townhome, and Condominium (market-rate, owner-occupied).
  • New construction is eligible.
  • Manufactured homes are not eligible.

Where does it apply?

House to Homeownership (H2O) Down Payment Assistance Loan Program serves buyers purchasing in Boulder, Colorado.

How do you apply?

Applications for House to Homeownership (H2O) Down Payment Assistance Loan Program go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through City of Boulder homebuyer orientation; HUD-approved homebuyer education courses required prior to closing.

  2. Contact the administering agency to reserve funds

    Funds are reserved through First-come, first-served; applicants apply directly to Impact Development Fund (IDF), and are subject to availability.

  3. Work with a lender who handles the program

    Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.

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