Single Family “Turnkey” Mortgage Program

What is the Turnkey Program?

The El Paso County, Colorado “Turnkey” Mortgage Program provides a competitive 30-year fixed-rate mortgage with a down payment assistance (DPA) grant equal to 4% of the mortgage amount to qualifying low and moderate income homebuyer families throughout El Paso County, including the City of Colorado Springs.

When will the Turnkey Program end?

The El Paso County Housing Authority, as Program Sponsor, rolled out the “Turnkey” Mortgage Origination Program in early January 2013. There is no set “end date” for the Program, and mortgage & DPA funds are continuously available to participating lenders and eligible homebuyers.

What is the current interest rate?

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

Loan Type FICO Score Rate DPA Grant Amount Effective Date
 GOVERNMENT
USDA-RD or VA 640 6.00% 4% 4/19/2018
FHA 660 6.00% 4% 4/19/2018
FHA 640-659 6.00% 3% 4/19/2018
CONVENTIONAL – FREDDIE MAC
HFA Advantage 640 5.625% 4% 4/16/2018

Who is elibible?

The requirements for eligible homebuyers are:

  • Maximum Income: $108,920
  • Maximum Home Purchase Price: None
  • Maximum 45 debt-to-income (DTI) ratio
  • Minimum 640 FICO score with 4% DPA grant.
    • FHA loan FICO scores between 640-659 will receive a 3% DPA grant.
  • Because this is not a “bond” program, there is no first time homebuyer requirement nor federal “recapture tax” under the El Paso County Turnkey Program

What types of loans are eligible?

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

Do I need to need to complete 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).

Are there certain areas of El Paso County this program is limited to?

Mortgage loans under the program may be made to qualifying borrowers throughout El Paso County, including Colorado Springs.

Can be used jointly with: Mortgage Credit Certificate (MCC) Program

How can I find more information or apply for a mortgage?

For more information, please contact any of the participating lenders listed below for additional program details and to apply for a mortgage. This grant is your incentive to take the exciting step to apply and qualify for a home mortgage and does not have to be paid back!

Lenders: Should you wish to become an approved lender, please contact Jennifer Payne at Raymond James for more information.

Contact us:

DeAnne McCann
Economic Development Executive Director
9 E. Vermijo Ave
Colorado Springs, CO 80903
Phone: 719-520-6481
Fax: 719-520-6288
deannemccann@elpasoco.com

Sara Lobato
Economic Development Senior Analyst
9 E. Vermijo Ave
Colorado Springs, CO 80903
Phone: 719-520-6480
Fax: 719-520-6288
saralobato@elpasoco.com