Denver Homebuyer Assistance Program Relaunches Mortgage Credit Certificate Program

The City and County of Denver has re-launched its popular Mortgage Credit Certificate Program. This program makes it easier for qualified borrowers to become homeowners by allowing qualifying borrowers to receive an annual federal income tax credit equal to 30% of the annual interest paid on their mortgage loan (up to $2,000 annually). The program has assisted more than 265 homebuyers since 2009, but it previously expired in the fall of 2014 after all of its fund were deployed. The new program period runs through December 31, 2017, or until $37.5 million in mortgages are completed–the total amount of the city’s Private Activity Bond allocation. Said Denver Mayor Michael B. Hancock: 

“Homeownership results in equity building at the individual level, and the further strengthening of our communities. We’re working to boost homeownership opportunities for working families throughout the city, and particularly in neighborhoods with a lower frequency of mortgage originations.” 

The new program will benefit approximately 210 Denver households and can be combined with other homebuyer assistance programs. For example, it can be combines with Denver’s Metro Mortgage Assistance Plus program, which offers a 4% grant for closing cost assistance and down payment.

What is a Mortgage Credit Certificate?

A Mortgage Credit Certificate is a tool to reduce the amount of federal income tax a borrower must pay by providing an annual federal income tax credit. This effectively provides additional take-home income for borrowers to use to meet household expenses. Lenders can use the estimated amount of the credit on a monthly basis as additional income to help a potential borrower qualify for a loan. The program is available to qualifying borrowers purchasing a residence in the City and County of Denver. In order to take part in this program, your annual family income cannot exceed $93,360 and the maximum home cost for a single-family residence is $382,500.

In some targeted areas, higher income and purchase price limits are available. Participants must also verifying they have not owned a home in the past three years (except in targeted areas and for qualifying veterans). Mortgage loan terms and interest rates are set by participating lenders, though they must be fixed-rate and not exceed 40 years.

More information, including a list of participating lenders, can be found at The Denver Office of Economic Development (OED) is dedicated to advancing economic prosperity for the City of Denver, its businesses, neighborhoods and residents. Working with a wide variety of community partners, OED operates to create a local environment that stimulates balanced growth through job creation, business assistance, housing options, neighborhood redevelopment and the development of a skilled workforce.