Denver Metro Mortgage Assistance Plus - FAQ's
Metro Mortgage Assistance Plus - Frequently Asked Questions
> 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!
> 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.
> 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).
> Do I still need to meet other guidelines? Yes, as with a regular mortgage, you do need to meet the loan guidelines.
This program asks that you have a minimum FICO score of 640 (660 for manufactured homes) and a maximum debt-to-income ratio of 45, and we also require that you complete HUD-approved homebuyer 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 purchase price) 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.
> What sorts of homes or properties can I purchase?
Single-family, detached house Condominium or townhome Duplex Manufactured homes 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.
> Where should the home I buy be located?
At this time, any home in Denver County, City of Littleton, City of Arvada. City of Edgewater or City of Sheridan can be purchased through this program. Additional Metro Mayors Caucus jurisdictions are expected to join the program throughout the year.
> 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.
> 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.
> 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.
> How do I get started?
Contact us to learn more and to meet with a participating lender. 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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