From the Denver Post:

Potential buyers get state loan, federal tax credit

 The Colorado Housing and Finance Authority rolled out a mortgage program Tuesday that advances a new federal tax credit for first-time homebuyers so they can purchase a home more easily.

Under the American Recovery and Reinvestment Act, first-time homebuyers who purchase a property before Dec. 1 can receive 10 percent of the price, up to $8,000, back as a tax credit.

The catch is that many potential buyers don't have enough money to cover the down payment to buy a home and obtain the credit. But if they could qualify, they could, in theory, find a way to make a purchase and get the credit.

CHFA's JumpStart program breaks the trap by lending up to $6,000 or 3.5 percent of a home's purchase price, whichever is less, to cover closing and down-payment costs.

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