What rules apply to first-time buyers in Colorado mountain towns?

Planning numbers by area

Rule one: you usually have to work locally

Resort counties use deed restrictions to keep homes for people who work there. The details differ.

• Summit County guidelines: owners must live in the county and work there year-round, averaging at least 30 hours a week. Self-employed buyers qualify if their business is based in and serves the county and needs them on site, with written county approval.
• APCHA in Pitkin County: 1,500 hours of work in the county per calendar year. When several buyers bid, a lottery picks the winner, weighted mainly by local work history.
• Vail InDEED: the occupant must work at least 30 hours a week in Eagle County. The town pays owners to record the restriction.

For teachers, deputies and firefighters in these counties, a full-time local job usually meets the hours test. Volunteer firefighters with an out-of-county day job may not.

Rule two: it must be your home most of the year

Summit County and APCHA both require the home to be your primary residence for at least nine months a year. Summit County bans short-term vacation rentals of a deed-restricted unit. APCHA gives new owners six months to sell other homes in its exclusion zone. Summit generally bars owning other developed residential property in Colorado.

Rule three: resale may be capped

Summit County's guidelines cap resale gains at 2% a year, simple interest, plus approved improvements up to 10% of the price per 10 years, plus up to 1.75% for a sales commission. Vail InDEED has no appreciation cap. APCHA limits resale too, and owners who do not maintain the home may not get the full allowed amount. Read the specific deed before you compare a capped home with a market home. See the deed-restricted homes guide.

Rule four: local money is limited

Summit Combined Housing Authority says its revolving loan fund is fully used and on a waitlist. Eagle County's Division of Housing loan runs 30 years at 2.5% simple interest, and payments can be deferred for the first 60 months with approval. Eagle County Loan Fund's FHA option caps at $42,500 and runs 15 years at 2.5%. Garfield County's program requires buyers to own no other real estate and can be combined with other help.

Several employers in the region run their own programs through Impact Development Fund, including Pitkin County, the City of Aspen, the Town of Vail and the City of Glenwood Springs. Police and fire staff qualify only if a participating town or county employs them. Fort Lewis College staff in the southwest have a separate program.

Statewide funds reach some resort areas too. Colorado Roots lists Eagle, Summit, Garfield and La Plata counties among its eligible areas, with up to 10% of the price for first-time or first-generation buyers. In the southwest, HomesFund offers shared-appreciation loans in La Plata, Montezuma, Archuleta, San Juan and Dolores counties.

Income limits run lower than you might expect

CHFA's main programs use statewide caps: $178,920 for Schools To Home and $196,810 for Colorado Champions. FirstStep uses county limits, and several resort counties sit below Denver's $144,000 for one or two people.

Closing costs unique to resort towns

Colorado's state documentary fee is small: one cent per $100 of price under C.R.S. 39-13-102, or $50 on a $500,000 home. Some towns add their own real estate transfer tax. Vail has charged 1% since 1979, and under the TABOR amendment the town says it cannot raise it. Vail's code makes everyone in the transfer jointly responsible, so the contract decides who pays. Ask the title company for every local transfer charge in your town before you make an offer.

How local work is proven

Expect to prove your hours twice: once to the housing authority and once to the lender. Summit County asks for a buyer qualification application listing all assets and debts, and it may request tax returns, W-2s, 1099s, bank statements and utility bills. APCHA weights its lottery by local work history, so keep records of each local employer. Seasonal workers should save every year's W-2s, since a year-round average is what counts.

Condos, HOAs and insurance

Many first homes in resort areas are condos or townhomes with high dues. Lenders count dues in your payment, and the building must pass the lender's review. Wildfire exposure can also limit insurance options. Read the HOA guide and the wildfire insurance guide before you tour.

A mountain-town game plan

1. Get on the local housing authority's buyer list early, since lotteries reward work history.
2. Collect proof of local hours: paystubs, employer letters, or business records if self-employed.
3. Ask each fund whether it can be paired with your CHFA program.
4. Price the HOA, insurance and transfer tax for each home.

Then check your eligibility for the state programs that sit underneath.

Questions

Other guides

• What will you owe back when you sell? Exit math for Colorado down payment help
• Which first mortgage goes with each CHFA program?
• How do lenders count overtime for Colorado firefighters, deputies and dispatchers?
• How do lenders read school-year pay for Colorado school staff?
• How do you budget for a first home in a high-price Colorado market?
• How much do metro district taxes add to a new Colorado home?
• What should first-time buyers check about a Colorado HOA?
• How do deed-restricted and land trust homes work in Colorado?
• How does wildfire risk affect home insurance for Colorado buyers?