Business & Community Development
Metro Mayors Caucus Announces Availability of Mortgage Assistance Funds For First-Time Homebuyers
First-time homebuyers in Brighton and 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 2007 bond 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. In addition to Brighton, participating jurisdictions include: Arvada, Aurora, Bennett, 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.