What is the Metro Mortgage Assistance Plus program?
First off, the City of Denver is AWESOME for giving people this opportunity! The Denver Metro Mortgage Assistance Plus Program is is an amazing program that actually gives you a 4% grant to go towards you down payment and closing costs. This is a grant you don’t pay back. Yes, you heard me right. The City of Denver has set up this amazing program to help people with low to moderate income achieve homeownership.
The 4% grant is a percentage of the loan amount. See below for an example of a $200,000 purchase price with an FHA loan. FHA requires a minimum down payment of 3.5% and adds 1.75% for the FHA Up Front Mortgage Insurance Premium on top of the base loan amount.
Purchase price $200,000
Minus 3.5% -$7,000
Base loan amount $193,000
Plus 1.75% MIP +$3,377
= Loan amount $196,37
4% grant = $7,855 – WOW! You never have to pay this back!
In this scenario you would have enough to pay the $7,000 down payment and have $855 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 $91,100 for 1-2 person households & below $103,000 for 3 or more person households.
- Complete a HUD approved homebuyer education class.
- Complete a loan application with an approved MMAP lender and meet the standard loan guidelines for FHA or VA. Call 303-521-7169 to get started.
Can I use this program for homes outside of Denver?
Yes, as of 08/26/2013 you can currently use the Denver Metro Mortgage Assistance Plus program in the following areas.
As of 10/18/2013 the City of Broomfield was also added.
Denver, Arvada, Aurora, Boulder, Brighton, Centennial, Dacono, Edgewater, Englewood, Golden, Lakewood, Littleton, Parker, Sheridan, Westminster and Wheat Ridge.
The home has to be within the incorporated city limits of the participating city.
In addition, Jefferson County and Boulder County are program participants for properties within unincorporated areas.
Additional 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 type of properties can I use this with?
- Single family homes
- Condo or townhome (If FHA it must be an approved FHA complex)
- Manufactured homes
Where can I finish my homebuyer education class?
There are many great places you can take this class for Free. Below are a few, you can visit the below links or I can help you schedule a class.
You can also do an online class at eHomeAmerica for a $50 charge. If you get a code they will give you a slight discount for the 2nd person.
Click here for a list of all HUD approved housing counseling agencies in Colorado.
Always make sure to show up on time and to keep a copy of your certificate.
Is there a purchase price limit?
Denver Metro Mortgage Assistance 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 the interest rate?
The loan is a 30-year fixed through FHA or VA. The interest rate is slightly higher with the Denver Metro Mortgage Assistance Plus Progam than the market rate is for FHA and VA home loans.
However, the interest rate is the same for everyone who qualifies. The rate is the same, regardless if your credit score is 640 or 840. Everyone receives the same rate.
The rate is locked once the lender has successfully reserved the funds.
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 you should have .50 % of the grant left over after the minimum 3.5% down payment.
How long does it take to close?
Once the loan is reserved you have to close the loan within 45 days per eHousingPlus who manages the program.
However, if you have provided all of your documentation up front you can close under 30-days with ease as long as the property and appraisal cooperate too.
Where is the loan underwritten?
The loan is underwritten in our operations office in the Denver Tech Center.
Can I use this on an investment property?
No, this is strictly for owner occupied purchases only.
Do I have to be a first time homebuyer?
No, there is no first time home buyer requirement for this program.
Can I use this for a refinance?
No, this is strictly for new purchases only.
Can I get my earnest money back at closing?
Yes, you can get your earnest money back at closing as long as your 4% grant covered your required down payment for your loan program. Or you can apply it to your closing costs.
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 homebuyer or buy a home in a targeted area. A first time homebuyer 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 30% of the annual interest you pay on your mortgage loan. Call me for more details and to see if you qualify. 303-521-7169
How long does this program last?
The Denver Metro Mortgage Assistance Plus Program is expected to be a two year revolving pool of $15 million in funding to about December 2014. It is on a first-come, first-served basis or while funds remain.
Take advantage of this now! The City and County of Denver has provided an incredible opportunity.
The time is now! 4 percent grant given to you for down payment and closing costs and you never have to pay it back.
Remember how fast the last year went by?
How do I get started?
The first step is to contact Sean Young and start the pre-approval process today, or click this link to apply online today.Sean YoungMortgage Loan OfficerNMLS: 191647Phone: 303-521-7169Email: email@example.com www.mylendersean.comFirstCal Colorado