Down Payment Assistance available for buyers purchasing in the Denver Metro Area
NEWSED Community Development Corporation will provide down payment assistance and closing cost to eligible buyers in the form of a second mortgage loan. This assistance can be used for down payment, closing cost, principal reduction and interest buy down.
Borrowers must meet with NEWSED to reserve funding once under contract at least three weeks before closing.
- Loan Amount: Up to $10,000 based on need
- Property must be located in the Denver Metro Area: (Adams, Arapahoe, Broomfield, Denver, Douglas and Jefferson).
- A property inspection is required. The property must meet with a decent, safe and sanitary condition.
- Borrower and Co-borrower must be a first time home buyer
- Income Limits: Household income must be under 120% of AMI (please review income limits chart).
- Borrower cash investment: Conventional Loans $1,000.00 of their own funds, FHA Loan 3.5% of their own funds or other funds coming from CHAC or CHFA.
- First Time Home Buyer Class is required (CHFA approved including Ehome) NEWSED also conducts classes.
- The Borrower must be legal resident or citizen of USA
- Debt to income ratios must be 45/50%
- The property under contract must be owner occupied or vacant.
- The program requires that homes purchased with assistance have a purchase price not to exceeding 95% of the median purchase price for the area.
- Borrower must attend a Borrower Counseling Section (Pre-Purchase Meeting).
- Based upon the Borrowers need for assistance with closing cost – no cash back from transaction.
- Rate will be prime + 3% deferred fixed.
- Terms offered: 60, 84, 120 – deferred payments start on the 13th or the 25th month on the loan depending on the approval.
For questions or more information, please contact:
|Family Size||120% AMI|