Single Family "Turnkey Plus" Mortgage Program - El Paso County Administration

Single Family “Turnkey Plus” Mortgage Program

The El Paso County, Colorado “Turnkey Plus” Mortgage Program provides a partially forgivable Down Payment Assistance (DPA) loan to individuals and families who want to purchase a home anywhere in El Paso County, including the City of Colorado Springs. Qualified homebuyers may receive up to a 4% or 5% in DPA in the form of a soft Second Mortgage loan at 0% Interest, which is only due upon pay-off of the First Mortgage. The El Paso County Housing Authority, as Program Sponsor, rolled out the “Turnkey Plus” Mortgage Origination Program on February 15, 2019.

Forgivable DPA Loan:

0% Interest
30-year deferred Second Mortgage, due upon sale or refinance
50% of the Second Mortgage Amount forgiven pro rata over the first five years (60 months) at 1/60th per month.
Remaining 50% of the Second Mortgage Amount will be forgiven at the end of the 30-year period/maturity date of the first mortgage.

Program Size: First & Second Mortgage funds currently are “Continuously Available”

The Program mortgage rates will change periodically to stay competitive with the market and generally are slightly above the market rate. Interest rates are subject to change at any time and will be confirmed by your lender at the time of loan reservation.

Loan Type	Minimum FICO Score	DPA 2nd Loan Amount
GOVERNMENT
USDA-RD, VA	640-659	3.5% or 4.5%
FHA, USDA-RD, VA	660 (currently)	4% or 5%

CONVENTIONAL – FREDDIE MAC
HFA Advantage	640	4% or 5%

Homebuyer Eligibility Criteria:

Maximum qualifying income: $120,120 for Government loan products / $64,640 for Freddie Mac loan products
Maximum home purchase price: None
Maximum debt-to-income (DTI) ratio of 45% for Government loan products
Maximum debt-to-income (DTI) ratio of 50% for Freddie Mac loan product
Because this is not a “bond” program, there is no first time homebuyer requirement nor federal recapture tax under the El Paso County “Turnkey Plus” Program

Eligible Loan Types:

Eligible loans include Government loans (FHA, VA and USDA) and Freddie Mac-eligible Conventional loans. All Program First Mortgage loans are 30-year, fixed rate. No loans are available for manufactured housing, and refinance loans are not permitted.

Homebuyer Education:

All homebuyers are encouraged to receive homebuyer education, however, first-time homebuyers utilizing the Freddie Mac HFA Advantage Conventional Loan will be required to complete homebuyer education. The free course, Freddie Mac CreditSmart – Steps to Homeownership Tutorial must be completed by at least one borrower. The course may also be conducted by a HUD-approved counseling agency, including online HUD-approved non-profits using eHomeAmerica (Neighborworks based curriculum).