What an amazing opportunity the City and County of Denver has provided the residents of select Colorado cites!
The Denver Metro Mortgage Assistance Plus Program is an amazing program that offers Down Payment Assistance from 2.5%, 3.0%, 3.5%, 4%, 5% and even up to 6% of the Total Loan Amount, depending on what you qualify for, your credit score and if you be using FHA or Conventional mortgage financing.
The down payment assistance amount can be applied towards your minimum down payment and/or closing costs.
The FHA minimum down payment is 3.5% of the purchase price.
The Conventional minimum down payment is 3.0% of the purchase price.
The Denver Metro Mortgage Assistance Plus Program is an amazing program that offers Down Payment Assistance from 2.5%, 3.0%, 3.5%, 4%, 5% and even up to 6% of the Total Loan Amount, depending on what you qualify for, your credit score and if you be using FHA or Conventional mortgage financing.
The down payment assistance amount can be applied towards your minimum down payment and/or closing costs.
The FHA minimum down payment is 3.5% of the purchase price.
The Conventional minimum down payment is 3.0% of the purchase price.
4% Grant?
The 4% grant is a percentage of the base loan amount. See the FHA loan example with a purchase price of $200,000 below. FHA requires a minimum down payment of 3.5% and adds 1.75% for the FHA Up Front Mortgage Insurance Premium in addition to the base loan amount.
Purchase price $200,000.00
Minus 3.5% $7,000.00
Base loan amount $193,000.00
Plus 1.75% mortgage insurance premium $3,377.00
Loan amount $196,377.00 (the down payment grant is equivalent to 4% of this amount)
4% down payment grant or $7,855.08 of which zero has to be paid back!
In this loan scenario you would have enough to pay the $7,000.00 down payment and have an additional $855.08 left over to apply towards closing costs!
Purchase price $200,000.00
Minus 3.5% $7,000.00
Base loan amount $193,000.00
Plus 1.75% mortgage insurance premium $3,377.00
Loan amount $196,377.00 (the down payment grant is equivalent to 4% of this amount)
4% down payment grant or $7,855.08 of which zero has to be paid back!
In this loan scenario you would have enough to pay the $7,000.00 down payment and have an additional $855.08 left over to apply towards closing costs!
How do I qualify for this loan program?
The requirements for this loan are as follows:
- Middle credit score of 640
- Maximum debt to income (DTI) ratio of 45%
- Income must be below $96,120.00 for 1-2 person households and $112,140.00 for 3 or more person household
- Complete a HUD approved home buyer education class
- Complete my secure online loan application
4% down payment grant, what's the catch?
Not really a catch just a great loan program however the interest rate is slightly higher than current FHA market rates and closing costs are slightly higher to include a 1.0% origination charge.
Would you purchase a home today if you did not have to worry about saving for the down payment? If so, this could be the loan program you have been waiting for.
Take advantage of this great resource that is being provided by the City and County of Denver!
Would you purchase a home today if you did not have to worry about saving for the down payment? If so, this could be the loan program you have been waiting for.
Take advantage of this great resource that is being provided by the City and County of Denver!
Can I use this loan program for homes outside of the Denver area?
Yes, as of December 8, 2015 you can use the Denver Metro Mortgage Assistance Plus program in the following cities:
The home has to be within the incorporated city limits of the participating city. In addition, Arapahoe County, Jefferson County and Boulder County are program participants for properties within unincorporated areas. Also, Metro Mayors Caucus jurisdictions are expected to join the program throughout the year. So if your city is not listed above, check back for updates.
- The City and County of Denver
- City of Arvada
- City of Aurora
- City of Boulder
- City of Brighton
- City of Broomfield
- City of Centennial
- City of Dacono
- City of Edgewater
- City of Englewood
- City of Firestone
- City of Golden
- City of Lakewood
- City of Littleton
- City of Parker
- City of Sheridan
- City of Thornton
- City of Westminster
- City of Wheat Ridge
- Town of Bennett
- Town of Castle Rock
The home has to be within the incorporated city limits of the participating city. In addition, Arapahoe County, Jefferson County and Boulder County are program participants for properties within unincorporated areas. Also, Metro Mayors Caucus jurisdictions are expected to join the program throughout the year. So if your city is not listed above, check back for updates.
What types of properties qualify for Metro Mortgage Assistance Plus?
- Single Family Residence
- Condominium or Townhome (must be an approved FHA complex)
- Duplex
Can I buy a manufactured home using Metro Mortgage Assistance Plus?
No. As of December 1, 2015 this program is no longer available on Manufactured Homes. Keep in mind Modular and Pre-Fab homes are not considered manufactured.
Where can I finish my home buyer education class?
This class is free and there are location all across the Denver Metro Area. Visit the links below or call me direct at 303.668.3350 and I would be happy to assist you with scheduling your class.
You can also complete an online class at eHomeAmerica for the cost of $99.00. Once you register you will receive a code good for a small discount.
Click here for a full list of HUD approved housing counseling agencies in Colorado.
You can also complete an online class at eHomeAmerica for the cost of $99.00. Once you register you will receive a code good for a small discount.
Click here for a full list of HUD approved housing counseling agencies in Colorado.
Is there a purchase price limit?
Denver Metro Mortgage Assistance does not have a purchase price limit other than the loan limits imposed by FHA for each respective county. There is also no minimum loan amount.
Click here for a link to Colorado FHA loan limits
Click here for a link to Colorado FHA loan limits
What are the loan terms and interest rates?
The loan is a 30 year fixed mortgage originated through FHA or VA. The interest rate is slightly higher with the Denver Metro Mortgage Assistance Plus Program than the market rate for FHA and VA home loans however the interest rate is the same for everyone who qualifies. The rate is the same, regardless of your credit score as long as you meet the minimum threshold of 640 - everyone receives the same rate.
The interest rate is locked once we have successfully reserved the funds.
The interest rate is locked once we have successfully reserved the funds.
Are the closing costs the same as other mortgage loan programs?
The closing costs associated with the Metro Mortgage Assistance Plus program are slighty higher as we have to charge a 1.0% origination that is not normally charged on FHA or VA loans. This program also charges $250.00 to eHousingPlus and $400.00 to US Bank.
Who services this loan after the closing?
US Bank services all of the Metro Mortgage Assistance loans after closing. However US Bank does not offer this loan product directly.
Is there a recapture tax?
No. There is no recapture tax for this loan program.
How long does it take to close this loan?
Once the loan is reserved with the Metro Mortgage Assitance Plus program the loan must close the loan within 45 days per eHousingPlus, the entity responsible for managing the program.
One thing to note - if you have are able to provide all required documentation initially or in a very timely manner, there is a good change we close under 30 days with ease. This will also be dependent on the appraisal scheduling times.
One thing to note - if you have are able to provide all required documentation initially or in a very timely manner, there is a good change we close under 30 days with ease. This will also be dependent on the appraisal scheduling times.
Where is the loan underwritten?
The loan is underwritten in house by our dedicated underwriter.
Can I use this loan program when I purchase an investment property?
No. The Metro Mortgage Assistance Plus program is strictly for owner occupied purchase transactions.
Do I have to be a first time homebuyer?
No. The Metro Mortgage Assistance Plus program does not have first time homebuyer requirements or guidelines.
Can I use this loan program if I want to refinance my house?
No. The Metro Mortgage Assistance Plus program is for new purchases only.
Can I get my earnest money back at closing?
It depends. You can get your earnest money returned to you so long as your 4% grant and any additional credits (e.g. seller paid closing costs) met and covered the required down payment and costs associated.
How long does this loan program last?
The City of Denver has established a revolving pool of $30 million to support this program. As the funds are revolving, the program will remain in place for the foreseeable future and provided there is demand.
Take advantage of this incredible opportunity that has been so graciously provided by the CIty and County of Denver!
The time is now! Yes! A %4 percent down payment grant that you do not have to pay back!
Take advantage of this incredible opportunity that has been so graciously provided by the CIty and County of Denver!
The time is now! Yes! A %4 percent down payment grant that you do not have to pay back!
How do I get started?
Call me today at 303.668.3350 to begin the prequalifcation process or click here to apply now!
