What is shared appreciation?
Shared appreciation loans are zero interest, deferred principal loans. No payments are made on the loan for 30 years, unless the home is sold, or title is transferred. At that point, the loan is due in its entirety plus a percentage of appreciation. For example:
- Sample Purchase Price: $600,000
- H2O Loan Amount: $90,000 (15% of purchase price)
- Home Value When Loan Is Due: $800,000
- Home Appreciation When Loan Is Due: $200,000
- Amount Due (original loan + 15% Appreciation): $120,000 ($90,000 + $30,000)
Building Equity with Down Payment Assistance Programs
Homeownership is one way people invest. The City of Boulder's down payment assistance programs allow buyers to invest and build equity or wealth. However, the programs have clear parameters on how equity can be built which can limit equity.
Income and Asset Max
Income is based on gross income for standard employees and net income for self-employed people.
number of people | INCOME MAX (120% AMI) | ASSETS MAX |
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1 PERSON | $126,600 | $158,250 |
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2 PEOPLE | $144,600 | $180,750 |
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3 PEOPLE | $162,720 | $203,400 |
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4 PEOPLE | $180,720 | $225,900 |
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5 PEOPLE | $195,240 | $244,050 |
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6 PEOPLE | $209,640 | $262,050 |
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7 PEOPLE | $224,160 | $280,200 |
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8 PEOPLE | $238,560 | $298,200 |
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Exempt Retirement Assets
Some retirement assets are exempt, see the table below for more information. Retirement assets include: 401(k)s, IRAs, and similar types of accounts. Retirement assets over these amounts are counted as regular assets.
AGE | EXEMPT AMOUNT |
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Under 40 | $30,000 |
40-55 | $55,000 |
Over 55 | $110,000 |