RESERVATIONS NOW OPEN
Northeast Denver Housing is now taking reservations for their Central Park Condominiums, new income-restricted for-sale homes in Central Park.
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DOES AN AFFORDABLE HOME FIT YOUR LIFE?
Maybe you’re retired and on a fixed income. Or you work in the highly important (but not highly compensated) fields of community or customer service. Or maybe you’re simply tired of watching your rent payment go up year after year. If any of these sound like you, keep reading.
HOW DO YOU QUALIFY FOR AN INCOME-RESTRICTED FOR-SALE HOME?
1) Maximum household income*
Affordable homes are also called income-qualified or income-restricted homes because they are for individuals or families whose gross (before-tax) annual income is at or below the figures below:
*These maximum income figures are subject to change based on U.S. Department of Housing & Urban Development annual updates. (June 2022)
2) Primary residence
Your affordable home must be your only home, where you live full-time.
You must meet your mortgage lender’s requirements for income, debt and credit. Depending on your lender and the kind of mortgage you have, you may also have to supply a down payment and closing costs.
4) City & County of Denver Debt-Income Ratio Requirement
Affordable homes at Central Park are provided through a partnership with the City & County of Denver. Denver also wants to ensure that homes are affordable to buyers. The standard for “affordable” is that a household does not pay more than about a third of their income on a housing payment. Denver requires that affordable homebuyers spend no more than 35% of their total household income on a mortgage payment and HOA dues.
This may be different than what your mortgage lender is able to approve, so it is important to understand the housing payment to income requirements of both the City of Denver and your mortgage lender. Another area of difference is that the City of Denver’s affordable housing requirements take into account the total income of all household members who will be living in the home, while your mortgage lender takes into account the income of those responsible for the mortgage. As a result, the income that the City of Denver uses to verify eligibility may be different than that used by your mortgage lender. The key to a successful affordable home purchase is to understand these differences and make sure that you provide the requested documentation for each type of application.