Making Denver homeownership more accessible
Buying a home in Denver is increasingly becoming expensive. The average closed price of homes sold in the Denver area have approximately doubled from 2009 through 2019, from $243,280 to $486,595, according to Denver MLS data.
That’s a big jump. That also means that first-time homebuyers have to bring more money to the table and have higher incomes to become Denver homeowners.
But there are many programs that help first-time homebuyers with credits, down payment assistance and more. First-time homebuyers are among my favorite clients to serve; the sense of excitement and thrill that finally comes with owning a place of your own is infectious and I know just how important it is to our community to increase access to homeownership.
This is why I keep a careful watch on programs that help lighten the burden for first-time homebuyers like a newer one from Bank of America. I have a client right now who’s buying a home in Jefferson Park using this program. It created a longer closing, but also brought their $73,000 downpayment down to $63,000. That’s a big jump for any buyer, but especially a first-time buyer who doesn’t have any home equity to put to their purchase.
[Are you a first-time homebuyer? I’d love to help. I can introduce you to programs like these. Reach out to set up a call: firstname.lastname@example.org].
Bank of America’s program
In second quarter 2019, Bank of America rolled out its Neighborhood Solutions program to help more than 20,000 low- to moderate-income and multicultural families and individuals become homeowners. It provides grant funds to qualified home buyers for down payments, closing costs, and other nonrecurring costs.
The Bank of America program provides eligible borrowers who apply for a Freddie Mac Home Possible mortgage up to $10,000 in grant funds toward down payment and closing costs, as well as education and counseling. It also offers eligible borrowers a lender credit of up to $7,500 toward nonrecurring closing costs such as title insurance and recording fees, or to permanently buy down interest rates.
Neither of these grants require repayment — a great option for first-time buyers who qualify. The bank also offers an Affordable Loan Solution mortgage — a competitive, fixed-rate loan with a down payment as low as 3 percent and no required mortgage insurance.