As was state below, this program was not put in place to help the Denver housing market, but intended to help a certain segment of the population get into the housing market with no 'skin in the game'. I remember a program a few years ago that said if you will commit to saving $3000 over the next year there would be an additional $6000 given to help you get into a home. I had one client that scrimped and saved the money and purchased a home with $9000 to work with. The program said it was amazing how few people followed through with that program to get to a purchase. It sounds good, but the mayor's words sound very familiar to the words spoken a few years ago before the big crash. We;'ll see how this one works out.
If there was a desire to help the housing market it would be interesting to see incentives given to home sellers who are on the fence about selling. We need homes to sell or this new program will present another group of hungry buyers with no available homes to purchase. Anyway, good question; and good answers so far.
Robert McGuire ASR
Your Castle Real Estate
Direct - 303-669-1246
Interesting that you raise this question as I had a buyer on Friday whom brought it to my attention and I wasn't aware of the program. She wasn't looking in the Denver area and now is considering the area since she could qualify for the program.
We the state of our current market (low inventory, multiple offers) I don't think it is a good idea to give money to a buyer so they don't have to bring a down payment to the table, that is just my opinion.
Bill Pearson GRI, SRES |"Your Denver Realtor For Life"
ERA Herman Group Real Estate| 201 Columbine Street| Suite 301| Denver CO 80206
5280 Magazine FIVE STAR Real Estate Professional â€“ 2010, 2011, 2012
But if you believe that â€œThere is no better way to help rebuild our local economy and expand the strength and vitality of our neighborhoods than to open the doors of home ownership to moderate and low-income buyers", then this program will certainly help. Granted inventory is tight right now, but Sellers will respond. There are tons of listings coming on every day in our neighborhoods.
BTW, the program includes a 4% grant to qualifying low and moderate income homebuyers to go towards down payment and closing costs. And there are loans available for as little as $500 down. So if you thought you couldn't ever afford to buy a home - what are you waiting for?
Give us a call today!
Tony & Karen