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The new Riverview Commons development will bring 66 new homes to Fort Morgan. Last Thursday, the project's developer sponsored a "Home Loans 101" seminar where residents were able to learn about low cost financing and low down payment options available to those who cannot afford a traditional 20 percent down payment for a home.Riverview Commons co-developer Karen Johnson said the programs help potential buyers get pre-qualified and signed up for one of the houses in the development, which is currently being constructed. Johnson said she is hoping that show model and speculative homes will be ready Summer of 2018. Homes at the development, which is located between Riverview Avenue and Interstate 76, start at $239,900 according to the Riverview Commons website.

Licensed Mortgage Originator Elizabeth Devereux explained during the seminar that homes at Riverview Commons are eligible for United States Department of Agriculture home loans. USDA loans are loans offered by the USDA to stimulate growth in rural areas. Devereux said USDA loans require no down payment, meaning that a buyer would only have to pay the closing costs associated with a home and could finance the rest of the costs. Federal Housing Administration loans are another loan option for those unable to afford a large down payment. FHA loans require a 3.5 percent down payment but can be used anywhere in the US unlike USDA loans which are limited to rural areas.

Down payment assistance is also available from the Colorado Housing and Finance Authority, Devereux said. "They have a grant and a silent second loan to bridge you from not owning a home to owning a home because it can give you the down payment money that you need," she said. That down payment grant can be for as much as four percent of one's first mortgage and does not require repayment. The silent second loan can be for up to five percent of a first mortgage. Repayment is typically delayed until the mortgage is paid off or the home is sold or refinanced. Devereux discussed the conventional loans available through the Freddie Mac and Fannie Mae Federal loan programs. Devereux said many people often choose to start out with an FHA loan and then try to get into a conventional loan because they offer better rates and require lower mortgage insurance premiums.

Paul Albani-Burgio | 970-441-5103 | paul@fortmorgantimes.com