Downpayment Assistance

Policy and Procedures

NEWSED CDC Down Payment Assistance is provided for low to moderate income First-Time Homebuyers. NEWSED assists with a portion of down payment and closing costs associated with the purchase of a home. This program is a silent second loan no interest, no payments and will be due on sale of the property, transfer or in 30 years.

Program Requirements

The applicant’s housing ratio 35% and debt-to-income ratio, including housing cost, cannot exceed 45% of household income, as determined by HUD.
The applicant must demonstrate need for the funding and have no more than $10,000 in liquid assets.
The applicant must meet with NEWSED for a one-on-one counseling session and complete a First-Time Homebuyer Class at least 2 weeks before closing.
The aggregate household income of all residents who will reside in the home must be at or less than 80% of Denver Area Median Income (See chart below).
For an FHA-insured loan the applicant must contribute a minimum of 3.5% of the sales price toward the purchase of the home. For conventional loan, the applicant must contribute $1,000 toward the home purchase including earnest money.
The applicant must occupy the property as a primary residence.

For questions or more information, please contact Veronica Acosta at 303-534-8342 ext. 133.

AMI CHART

Family Size	Non-Federal IDA Limit (80% of AMI)	100% AMI
1	$55,950	$69,937
2	$63,950	$79,937
3	$71,950	$89,937
4	$79,900	$99,875
5	$86,300	$107,875
6	$92,700	$115,875
7	$99,100	$123,875
8	$105,500	$131,875