What is the Denver Metro Mortgage Assistance Plus program?
5% Grant?
Purchase price: $200,000
– 3.5% down payment: $7,000
= Base loan amount: $193,000
+ 1.75% MIP $3,377
= Total loan amount $196,377
5% grant = $9,818.85
WOW! You never have to pay this back! In this scenario you would have enough to pay the $7,000 down payment and have $2,218.85 left over to apply towards your closing costs.
– 3.5% down payment: $7,000
= Base loan amount: $193,000
+ 1.75% MIP $3,377
= Total loan amount $196,377
5% grant = $9,818.85
WOW! You never have to pay this back! In this scenario you would have enough to pay the $7,000 down payment and have $2,218.85 left over to apply towards your closing costs.
How do I qualify for this program?
Have a minimum middle credit score of 640
Have a maximum debt to income (DTI) ratio of 45%
Income must be below the max county income limit. Ask me about county limits
Complete a loan application and meet the standard loan guidelines for FHA or VA.
Call me direct at 303.668.3350 to get started or click here to fill out my secure online application.
Have a maximum debt to income (DTI) ratio of 45%
Income must be below the max county income limit. Ask me about county limits
Complete a loan application and meet the standard loan guidelines for FHA or VA.
Call me direct at 303.668.3350 to get started or click here to fill out my secure online application.
Why does NHF provide a 5% grant?
The National Home buyers Fund, (NHF) was established in 2002 to stimulate and expand home ownership opportunities across the nation. Their mission is accomplished through the development and/or management of home ownership programs. They serve families and individuals who can afford a mortgage loan but do not have the resources for down payment and closing costs.
5% grant that I don't payback? What's the catch?
Catch #1: The interest rate is higher than current FHA market rates.
Catch #2: The closing costs are a bit higher however since you are given 5% of the loan amount and the FHA down payment is 3.5% you will have some left over to apply towards the closing costs.
Why the higher rate and fees? Because this is how they help fund this program.
Catch #2: The closing costs are a bit higher however since you are given 5% of the loan amount and the FHA down payment is 3.5% you will have some left over to apply towards the closing costs.
Why the higher rate and fees? Because this is how they help fund this program.
Is this considered down payment assistance?
Yes, this is considered down payment assistance. Also known as a down payment grant. This is a down payment assistance grant provided by NHF and its purpose is to help people in Colorado realize home ownership sooner rather than later.
Do I have to be a first time home buyer?
No, there is no first time home buyer requirement for this program.
Is this program limited to the Denver Metro Area?
No, this program is available to the entire State of Colorado.
What types of properties can this be used with?
- Single family homes
- Condo's (must be an approved FHA complex)
- Townhome’s/Pud’s
Do I have to attend a home buyer education class?
No, you do not. This program does not require educational classes however you can always choose to attend one to gain insight. There are many great places you can take this class for no cost. Visit the links below or call me and I can help you schedule a class.
Is there a purchase price limit?
NHF Platinum does not have a limit. The only limit is based on what you qualify for and what the max loan amount is allowed by FHA and VA in the county the property is located in. There is no minimum loan amount.
What are the loan terms and interest rate?
The loan is a 30-year fixed through FHA or VA. The interest rate is slightly higher with the NHF Platinum Program than market rate for FHA and VA home loans however the interest rate is the same for everyone who qualifies. The rate is the same whether your credit score is 640 or 740, everyone receives the same rate. The rate is locked once the loan has been underwritten with an approval.
Are the closing costs the same as other loan programs?
The closing costs are slightly higher with this program as we have to charge an additional 1% origination that is not normally charged on other FHA or VA loans. The good news is that after your 3.5% down payment has been taken out you will have some grant funds left over that you can apply towards your closing costs.
Can the seller pay part of my closing costs?
Yes, the seller can pay up to 6% of the loan amount towards your closing costs.
How long does it take to close?
Once the loan is reserved you have to close the loan within 45 days however if you provide all of your documentation up front and respond to additional document requests quickly you can close in under 30 days.
Are gift funds allowed?
Yes, gift funds are allowed from family members.
Can I use this to purchase an investment property?
No, this is strictly for owner occupied purchases only.
Can I use this for a refinance?
No, this is strictly for new purchases only.
Does this program allow for non occupant co-signers?
No, non occupant co-signers are not allowed.
Can I get my earnest money back at closing?
Yes, you can get your earnest money back at closing as long as the 5% grant covers the down payment, a portion of your closing costs and the seller paid your remaining closing costs and settlement charges. You can also apply your earnest money towards any remaining closing costs after the 5% grant has been used.
Can I use a Mortgage Credit Certificate with this program?
Yes you can, but to qualify for a Mortgage Credit Certificate (MCC) you have to be a first time home buyer or buy a home in a targeted area. A first time home buyer is defined as someone who has not owned a home in the past three years. With an MCC you will receive an annual federal income tax credit up to 20% of the annual interest you pay on your mortgage loan. Call me for more details and to see if you qualify - 303.668.3350.
How long does this program last?
The NHF Platinum Program is ongoing and is not at risk of running out of funds at this time.
How do I get started?
- Call me direct at 303.668.3350
- Schedule a time to meet in person - let's have some coffee!
