Promoting homeownership in
our community can help build generational wealth, strengthen the
Front Range and bring stability to its residents. At the end of
the day, everyone has to love somewhere and for those who aspire
to own a home and start building equity for themselves instead
of paying rent year after year and helping their landlord pay
their mortgage and build wealth, I am committed to helping my
community achieve the American Dream.
What is metroDPA?
Metro Down Payment Assistance (metroDPA) is a program sponsored
by the City & County of Denver helping people throughout the
Front Range become homeowners. It provides a home loan and down
payment assistance to help people become homeowners throughout
the greater Denver metropolitan area.
Who is Eligible?
For metroDPA: Anyone making up to $176,700/year with
minimum credit score of 640 are eligible for a home loan and
down payment assistance to purchase a home
throughout the greater Denver metropolitan area.
For metroDPA Social Equity: Residents and direct
descendants (the child or grandchild) of residents who lived in
a Denver neighborhood that was redlined
between 1938 and 2000 are eligible for the metroDPA Social
Equity program. The metroDPA Social Equity
program was specifically designed to help residents who lived in
areas that were historically targeted by discriminatory
lending practices like redlining*.
Denver Department of Housing Stability (HOST) is strongly
committed to equity and utilizing data and programs to ensure
that race is no longer a predictor of housing outcomes.
Proof of eligibility must be supplied to the Denver Department
of Housing Stability (HOST) and is subject to approval by HOST.
If someone qualifies, they may be eligible to receive $15,000 or
$25,000 (depending upon their income) and must be approved to
use a metroDPA home loan.
* Redlining is the practice of denying a creditworthy
applicant a loan for housing in a certain neighbor hood even
though the applicant may otherwise be eligible for the loan.
Is this FREE
assistance only available to first-time buyers?
No. Everyone is encouraged to participate!
Do I have to live in
Denver or buy a home in Denver to apply?
No.
The metroDPA and metroDPA Social Equity programs are available
to qualified applicants so long as the home they are purchasing
is located in greater Denver metropolitan area (full list of
cities & counties available).
How does the program
work and how much can I get towards a down payment?
For metroDPA: Assistance up to a percentage of the
home loan (first mortgage loan) amount for your down payment in
the form of an interest-free, 3-year forgivable second mortgage
– there are no scheduled payments and you don’t have to pay the
assistance loan (second mortgage) back if you stay in the home
for three years!
For metroDPA Social Equity: If
you are eligible and approved for the metroDPA Social Equity
program, you may be eligible for $15,000 or $25,000 towards your
down payment or closing costs. This is also an interest-free,
3-year forgivable assistance loan (second mortgage). The home
loan available for the Social Equity program is the metroDPA’s
lowest available interest rate for the type of home loan.
Does this program
have any other requirements?
You must use a
metroDPA-approved lender to obtain a 30-year fixed rate home
loan (first mortgage) in order to receive down payment
assistance. The mortgage can be FHA, VA or USDA loan or a
conventional loan and will be determined in cooperation with
your lender. Not all mortgage lenders have the expertise to
navigate through this program. If you need to determine if your
lender is a metroDPA-approved or if you need
a referral to a local mortgage lender who is, please contact
Anthony Rael at 303.520.3179
What is a second
mortgage?
The assistance loan is in the form of a
second mortgage, which creates a lien on the property for a
specific amount of time. In this case, the amount of time is
three years after the date of closing on the home. The loan is
forgiven over a three year period. You may sell or refinance
your home before the end of the three years and only repay the
unforgiven portion on a pro-rated basis.
What does
"forgivable" second mortgage mean?
Over the
first three years (36 months) of ownership, the down payment
assistance is forgiven 1/36th each month. After the third
anniversary (36 months) of closing, you will not have to repay
any portion of the assistance you received. If you sell or
refinance before the 36 months is up, you must pay back the
remaining portion of the loan. Example: A
borrower received $10,000 in assistance and 28 months after
closing they decide to refinance their home. They are going to
owe back a portion of the assistance they received. Remember,
the assistance is forgiven at 1/36th per month which means, in
month 28 after closing, $7,777 of the $10,000 amount has been
forgiven. So, the borrower will owe $2,223 when they refinance
or sell their home.
What can the down
payment assistance funds be used for?
The
assistance may be used for the down payment required by FHA,
Conventional, USDA and VA loans. The assistance may also be used
for customary closing costs, pre-paids or principal reduction of
the home loan. The assistance funds cannot be used to pay
the difference between the sales price and appraised value (aka
"appraisal gap"), to pay down any borrower’s debt or any
portion of the real estate agent's compensation or any
scenario where the homeowner would receive any cash back.
I'm
interested in this program. What's
the next step?
Reach out to Anthony Rael at
303.520.3179 (text is fine) or use my
contact form to submit a request online. We'll talk
about your desire to become a homeowner and getting you started
on the pre-approval process with a reputable local mortgage
lender (see below) so you will know exact how much you can
afford and which program you may be qualified for.
Preferred Local Mortgage Lenders
Union Home Mortgage - Tiffany
Swisher @ 303.884.4137
Home
Mortgage Advisors - Deana
Hollstein @ 303.818.0522
Nexa
Mortgage - Lainie
Chambers @ 720.495.2788
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