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Julie Montgomery's Blog

By Julie Montgomery | Agent in Denver, CO

New!!! Down payment assistance program in Denver, CO.

Hi friends -- I wanted to share this information with you ... this is a new down-payment assistance program in Denver.  Please read below for more information. I think this program will open doors for many people who have good credit, income but not enough for a down payment on a home.

1.  What is this program?

This is a special grant program for low and moderate income individuals and families that seeks to bring the dream of home ownership within reach.

We know that lacking the funds for a down payment is often a barrier to home ownership. As you apply for a 30-year fixed rate mortgage, we help with down payment and closing cost assistance of up to 4% of your loan!

2.   Do I have to pay back this down payment grant in the future?

No! This is your incentive to take the exciting step to apply and qualify for a home mortgage.

3.  How do I find out whether I qualify?

Your lender will help you explore your specific income, debt and credit factors. Unlike previous mortgage assistance programs you may have heard of, there is no requirement that you be a first-time buyer.

Your income needs to be less than $91,100 for households of two or fewer persons (and less than $103,000 for three or more).

4.  Do I still need to meet other guidelines?

Yes, as with a regular mortgage, you do need to meet the loan guidelines.

This program requires a minimum FICO score of 640 and a maximum debt-to-income ratio of 45. They also require that you complete HUD-approved home buyer education.

And even though a significant portion of your down payment will be supported by this grant, you do need to bring 0.5% (one-half of one percent of the total mortgage) to the closing on your own.

For example, a house you might purchase for $160,000 might require 4% as the down payment plus closing costs, or $6,400. This program would grant you $5,600 of that amount, but you would need to contribute $800.

5.  Where do I get this free homebuyer counseling--the education that you require?

There are a number of nonprofit organizations that provide this service, including:

www.coloradohousingassistance.org
www.delnortendc.org
www.nedenverhousing.org
www.brothersredevelopment.org 

In addition, any HUD approved housing counseling agency is acceptable. For a complete list of agencies, visit http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm.


6.  What sorts of homes or properties can I purchase?

Single-family, detached house
Condominium or townhome
Duplex

You must occupy the home as your primary residence. We do not have a limit on the property price beyond what your lender believes you can qualify for. Note: This program does not include refinancing of properties you already own.


7.  Where should the home I buy be located?

At this time, any home in Denver or Littleton can be purchased through this program. Additional Metro Mayors Caucus jurisdictions are expected to join the program throughout the year.

8.  Who are the mortgage lenders?

We’re pleased that 12 lenders have offered to work on this program because they know that it represents a small but significant boost to increasing home ownership—which in turn builds the overall strength and vitality of neighborhoods. They are:

Air Academy Federal Credit Union, 800-223-1983
Commerce Mortgage, 303-770-2686
Citywide Home Loans, 303-996-7000
Cornerstone Home Lending, 970-797-3717
Ent Federal Credit Union, 800-525-9623
Peoples Mortgage, 303-302-3125, 303-224-3442
Real Estate Mortgage Network (REMN)
Rocky Mountain Mortgage Specialists, Inc., 303-773-6106
Summit Mortgage Corporation, 303-779-0591, 720-200-9480
Universal Lending Corporation, 303-758-4969
V.I.P. Mortgage, 303-302-2285, 303-695-7818
WR Starkey Mortgage, 720-489-0712, 303-757-0300, 303-671-8733

9.  Can I use a different lender?

Your fastest and most convenient choice would be from the participating lenders listed above. If you are working with another lender who would like to participate, they would need to apply and meet certain requirements. Ask them to contact Stacy Houston with Raymond James, stacy.houston@raymondjames.com.

10.  How long will this opportunity last?

We expect this revolving pool of $15 million in funding to be available for about two years, through about December 2014. It is a first-come, first-served basis.

11.  How do I get started?

Choose a participating lender, tell them that you’re interested in the “Metro Mortgage Assistance Plus Program,” and begin the process today to become the metro area’s newest homeowner!

For Denver residents, there is the potential for federal tax credits up to $2,000 annually as well. Ask your lender whether you meet Mortgage Credit Certificate Program requirements.

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