The City of Boulder is committed to making homes in our community available to a variety of people. We offer opportunities for homeownership to those with low, moderate, and middle incomes. Homes are sold at below market-rate prices to income eligible buyers who intend to owner occupy the home.
Permanently Affordable Homes Program
Permanently Affordable Homes Program
Homes are sold at below market-rate prices to income eligible buyers who intend to owner occupy the home. Homes are permanently affordable and governed by an Affordability Covenant that limits the resale price and places other restrictions on the home.
Homes for sale in this program are listed on the Homes for Sale page.
Who Qualifies
To qualify, households much meet certain income and asset limits. Below are the max income and asset limits for the program.
Each Permanently Affordable home has its own income limit and many are lower than these limits. Check the homes for sale page for examples.
Income and Asset Limits
Income is based on gross income for standard employees (income before tax and other deductions) and net income (earnings after business costs are taken out) for self-employed people. For all people, the estimated earnings over the next 12 months are used.
Assets include checking accounts; savings accounts; investment accounts; retirement accounts; and similar types of accounts.
- Some money used for down payment is not included. This can be subtracted from a person’s assets. This subtraction is capped at 20% of the home’s price for most. This is a way to decrease assets to qualify.
- If there are questions regarding asset limits, please contact program staff as some exceptions can be made for extenuating circumstances (recent divorce, retirement, disability).
| NUMBER OF PEOPLE | INCOME MAX (120% AMI) | ASSETS MAX |
|---|---|---|
| 1 PERSON | $126,600 | $158,250 |
| 2 PEOPLE | $144,600 | $180,750 |
| 3 PEOPLE | $162,720 | $203,400 |
| 4 PEOPLE | $180,720 | $225,900 |
| 5 PEOPLE | $195,240 | $244,050 |
| 6 PEOPLE | $209,640 | $262,050 |
| 7 PEOPLE | $224,160 | $280,200 |
| 8 PEOPLE | $238,560 | $298,200 |
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 |
|---|---|
| Under 40 | $30,000 |
| 40-55 | $55,000 |
| Over 55 | $110,000 |
Other Requirements
- Completion of city orientation and homebuyer education class
- One member of the household must work 30 hours/week unless retired or disabled
- Have a minimum of $2,000 toward down payment/closing costs (these costs will likely exceed $2,000)
- Qualify for a first mortgage loan
- Total debt to income ratio should not exceed 42 percent (learn more about debt to income ratios)
- May not own another home at time of purchase
- Home must be owner-occupied, rental restrictions apply
- Number of bedrooms may only exceed number in household by one
- Minimum work history of one year within the most recent 12 months
- Agree to all covenant restrictions
Debt Ratio
The program limits the amount of debt allowed. Debt is money borrowed that needs to be paid back to others. The monthly debt payments need to be less than the monthly income. Comparing monthly debt to monthly income is called a “debt-to-income ratio.” This ratio is figured by dividing the monthly debt by the monthly income (monthly-debt / monthly-income). Most of the time the program needs the ratio to be less than 42-45%. Having a lower number is good. Learn more on the Investopedia website.