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	$52,000	$65,000
2	$59,400	$74,300
3	$66,850	$83,600
4	$74,250	$92,800
5	$80,200	$100,300
6	$86,150	$107,700
7	$82,100	$115,100
8	$98,050	$122,500