DOWN PAYMENT ASSSISTANCE
SHARED APPRECIATION LOANS

One of the down payment assistance programs offered by Telluride Foundation’s Housing Opportunity Fund (HOF) is a Shared Appreciation ‘SA’ Loan (aka Shared Equity). SA loans will cover up to 20% of the cost of a home purchase, not to exceed $50k ($100k in San Miguel County).  SA Loans are available only to Qualified Workers (see below) who are purchasing a deed restricted housing unit in the Telluride Foundation’s Service Area (SA) identified as San Miguel, Ouray and West Montrose counties (Nucla & Naturita) and the Town of Rico. The purchase price of the home may not exceed $850,000 and the home must be and remain the Applicant’s primary residence . This program is only available for single family homes, condominiums, townhomes, duplexes, modular homes or manufactured homes on a permanent foundation taxed as real property. The program is not available for land purchases or mobile homes.

NOTE: In the west end of Montrose County (Nucla & Naturita) homes do not need to be deed restricted but the maximum loan amount is $30k and maximum home price is $300k.

Qualified Workers are defined as individuals that:

• • Have been working full-time (no less than 1,400 hours annually) in the SA for at least the past 12 months – presence required.
  • Do not own any other real property (residential, commercial, improved or land) in San Miguel, Ouray, Dolores or Montrose County.
  • Have not received funding from the Housing Opportunity Fund in the past
  • Have a household income at or below the following income limits (150% Area Median Income)
• 

• Have household net assets valued at, or below, 1.5x your household gross income; net assets include money you (and if applicable, co-applicant) have in savings or checking accounts, investments, and any equity in real estate, cars, or other similar assets. When calculating your net assets, do not include retirement funds (ex. IRA, 401K).

SA Loan Details: SA loans are 0% interest loans with no payment due until the home is sold or refinanced, at which time the full loan amount PLUS a pro-rata share of the homes appreciation is due. Below is an example of what a SA Loan repayment could look like.

Additional Criteria:

• Purchaser must first qualify for the appropriate deed restriction (ex. Town of Telluride, San Miguel County, Town of Mountain Village, Town of Rico).  
• If more than one person is purchasing the home, only one person is required to be a Qualified Worker to apply for funding, and maintain Qualified Worker status, however the income, net asset and property ownership of any co-applicant to the purchase will be taken into consideration for purposes of determining qualification.

Application Process: The first step in the SA Down Payment Assistance Loan Application process is to complete a Telluride Foundation’s Housing Assistance Pre-Qualification form ‘HAPQ’. Once we receive your completed HAPQ form we will contact you to discuss your qualification and next steps. Should you proceed with a SA Loan application you will do so through the Impact Development Fund ‘IDF’. IDF is a licensed lender that will process your application and, if awarded, service your loan. Your 1st mortgage loan officer will assist you in submitting your application to IDF.

The Telluride Foundation’s Housing Assistance Pre-Qualification form can be found HERE.

The Foundation’s Down Payment Assistance Program is designed to support sustainable homeownership. Applicants are required to qualify for a first mortgage through a licensed lender, and the Foundation relies on the lender’s assessment of creditworthiness, debt-to-income ratios, and repayment capacity.

Requirements and guidelines for applying for and receiving funds from the Foundation’s HOF may change periodically based on community demand and funds available. Telluride Foundation’s website may not reflect recent changes in the loan program’s guidelines or qualification criteria. Qualification does not guarantee funding.