The Basics Part 2: Your Buying Paths & Next Steps

Your path to deed-restricted homeownership in Eagle County.

In just a few minutes, you will understand the two main buying paths and the core steps to move forward.

The Housing Helpdesk → Deed-Restricted Basics → The Basics Part 2 of 3

Introduction

The deed-restricted homeownership journey usually follows one of two paths. This page explains the difference and the core steps so you can move forward with confidence.

Pro Tip: When you’re ready to sign up for homebuyer classes or start looking for deed-restricted homes and current listings, head over to The Valley Home Store. They’re our trusted local team for one-on-one guidance and the right resources to help you through the real estate process.

Before you start

Most deed-restricted purchases move faster when you do three things early.

  • Learn the rules for the specific program and home you are pursuing.

  • Prepare your finances and secure a lender. A pre-qualification letter is essential before you begin shopping for a home.

  • Gather documents before you are racing against a deadline.

Two ways to buy a deed-restricted home

Option A: Buy a home that is already deed-restricted
These homes already have eligibility and use requirements attached. Most require buyers to verify eligibility before submitting an offer. Others allow you to apply after you are under contract. The rules depend on the home and the program.

Option B: Buy an open-market home and add a deed restriction with a buy-down
Some local programs provide upfront funding applied at closing (often called a buy-down). This can reduce your effective cost and the amount you have to finance with a mortgage. In exchange, a deed restriction is recorded on the home so it remains available for future residents.

Housing Comparison Table
Comparing Options
Aspect Option A: Already Deed-Restricted Home Option B: Open-Market Home + Buy-Down
Where you shop Deed-restricted listings (often through The Valley Home Store) Open-market listings (within program limits: example: sales price, location)
How affordability works Price is already lowered by the existing restriction Program funding at closing lowers the purchase price of the home, and a new restriction is recorded
Competition and timing Primarily lottery or scoring-based, with some first-come opportunities First-come basis with limited funding and defined timelines
Best for Buyers who want a defined program pathway and are watching the limited inventory closely Buyers who want more choice in location or style and are comfortable with long-term rules
What to do next Secure financing, verify eligibility, and track listings and deadlines Contact the program manager early to confirm eligibility, funding, and property requirements

No matter which path you take, you’re on your way to stable homeownership. While deed-restricted homes have a few extra steps, those requirements are exactly what protect the home’s future.

What most buyers need for either path

Most deed-restricted purchases include some combination of the steps below.

  • Review program guidelines and deed restriction terms

  • Confirm eligibility through documentation

  • Get pre-qualified by a lender

  • Prepare paperwork (identity, income, employment, residency, assets)

  • Complete a homebuyer education class when required

  • Meet deadlines and submit a complete application

Note: While lender pre-qualification is a helpful starting point, a pre-approval carries significantly more weight. Be sure to ask your lender about the differences and whether they have experience working with deed-restricted programs and transactions.

Step-by-step (simple checklist)

  • Review program guidelines and deed restriction terms so you understand the long-term requirements.

  • Eligibility is verified through documentation. Requirements vary and can include employment, residency, household composition, income limits, and other factors like owning other real estate.

  • Get pre-qualified by a lender. Make sure to ask if they have experience with deed-restricted transactions and local program requirements.

  • Common items include government-issued photo identification (ID), proof of income and employment, proof of local residency when required, and bank statements.

  • Most deed-restricted purchases require a homebuyer class or equivalent before closing. The Valley Home Store is a common place to start for class information and registration.

    • Already deed-restricted home: Explore listings and follow the eligibility steps for that home.

    • Open market with a buy-down: Confirm program fit and property requirements before you shop.

  • Provide all required documents on time. Incomplete files can delay or disqualify you.

  • The program administrator reviews eligibility and confirms the property meets program requirements. If approved, you will receive the documents and/or instructions needed to proceed.

  • At closing, the deed restriction is recorded, and any program funding is applied if applicable.

What can slow you down (common pitfalls)

  • Waiting until the last minute to gather your documents

  • Using an expired lender pre-qualification letter

  • Submitting bank statements or pay stubs with missing or hard-to-read pages

  • Assuming a property is eligible without confirming it first (common with buy-down programs)

  • Working with a lender who is not familiar with deed-restricted requirements

Next steps