METRO MAYORS ASSIST FIRST-TIME HOMEBUYERS
Program Offers Downpayment Assistance and Stable, Conventional Fixed-Rate Mortgages
First-time homebuyers in many parts of the Denver metro area can now get a
4% down payment assistance grant and
5.95% 30-year fixed rate mortgage through the Metro Mortgage Assistance program led by the City and County of Denver and the Metro Mayors Caucus.
Cities throughout the Front Range contributed a total of $32.5 million in bond issuing capacity to fund the program, which provides first-time homebuyers with access to 5.95% 30-year fixed-rate mortgage loans (FHA, VA, RHS, Fannie Mae and Freddie Mac eligible conventional) accompanied by a grant for down-payment and closing-cost assistance equal to 4% of the original loan amount. Participating jurisdictions include: Arvada, Aurora, Bennett, Brighton, Broomfield, Centennial, Erie, Denver, Frederick, Greenwood Village, Lakewood, Littleton, Louisville, Northglenn, Sheridan and Westminster.
“This type of a program is designed to be an
antidote to the risky mortgages that have contributed greatly to the foreclosure problems seen in Denver and throughout the country,” said
Denver City Council President Michael Hancock. “The below market, fixed-rate mortgages and companion down payment assistance grants are meant to help address the needs of first-time homebuyers who often find their only alternative to be loan products that subject the buyer to a greater likelihood of foreclosure.”
The Metro Mortgage Assistance program helps first-time homebuyers achieve a low 30-year fixed rate mortgage that provides them with a steady mortgage payment, keeping borrowers secure from rising interest rates and increasing payments. The down payment assistance is a non-repayable grant that helps give buyers a head start toward building equity in their home.
“The largest barrier to home ownership many families face is lack of a down payment," said City of
Broomfield Mayor Karen Stuart, who is vice chair of the Metro Mayors Caucus. “The Metro Mayors Caucus is pleased to continue our long-standing
support and encouragement of home ownership by providing a way for families to achieve and afford the American dream of owning their own home.”
To be eligible for the Metro Mortgage Assistance program, annual family income cannot exceed $71,700 for families of one or two persons and $82,455 for families of three or more. The maximum home cost under the program is $365,175. Eligible prospective homebuyers cannot have owned a home in the last three years, except in specified targeted areas. Higher income and purchase price limits are also available in those targeted areas.
Mr. Hancock voiced his appreciation to the Metro Mayors Caucus. “Of course, this is a
regional effort that wouldn’t have such a broad impact without the involvement of the Metro Mayors Caucus and the 16 participating cities.” He also added his thanks to the thirteen participating lenders. “We are so fortunate to have so many lenders participating in the Metro Mortgage Assistance program. Without the efforts of these lenders, there would not be a program.”
More information on the program is available at www.milehigh.com/housing.www.milehigh.com/housing
Interested potential homebuyers may contact any of the mortgage lenders participating in the program:
- Air Academy Federal Credit Union (720) 208-7440
- American Liberty Mortgage, Inc. (303) 458-3778
- Chase Home Finance (303) 759-6758; (303) 504-3183
- Cherry Creek Mortgage (303) 226-8711; (303) 302-8102
- Colorado State Bank and Trust (303) 861-2111
- Countrywide Home Loans, Inc. (303) 333-1385; (303) 716-7997
- Guaranteed Mortgage Bank (303) 996-1625 ext. 240
- Key Bank (303) 561-4344
- Peoples Mortgage Corporation (719) 531-5577; (800) 650-3300
- Summit Mortgage Corporation (720) 200-9480
- Universal Lending Corporation (303) 758-4969
- Wells Fargo Home Mortgage (303) 790-8601
- WR Starkey Mortgage LLP (303) 757-0300; (303) 489-0712
Prepared by Derek Woodbury, Marketing/Public Relations Specialist
Denver Office of Economic Development derek.woodbury@ci.denver.co.us