The LDFC provides a no-interest loan for up to $5,000. The amount of assistance would be 1.5% of the purchase price if the lender requires a total of 3% down. The amount of assistance would be 2.5% of the purchase price if a total of 5% down is required by the lender.
This program is ideal for those Lowell buyer's who exceed the income limits for the City of Lowell HOME program but fall below the LDFC limits.
Buyers must be first time homebuyers. The homebuyer must not have ever owned a house before or had their name on a deed.
- Property must be in Lowell
- Buyers must complete a homebuyer training program
- Property must be a condominium, single or two family house
Maximum Household Income
$139,590 (There are exceptions for UMass Lowell and City of Lowell employees.)
- Underwriter’s Worksheet
- Loan Application
- 3 Years of Tax Returns
- Employment Verification
- Credit Report
- Purchase & Sale Agreement
- Property Appraisal
- Commitment Letter
- First Time Homebuyer Certificate (for all borrowers)
- Landlord Training Certificate (if buying a two family house)
- Loan Estimate
Total debt ratio cannot exceed 42%. The LDFC has limited funds and therefore, reserves the right to deny an application if it feels that the risk factor is too high. Applications are reviewed on a case-by-case basis. Examples of factors which may affect a decision include but are not limited to; excessive debt, excessive payment shock from renting to owning, if a full-time job per person on an application is not sufficient to meet the mortgage payment, sufficient cash funds available, etc.
Procedure to apply: Let your lender know that you want to apply for the down payment assistance at the time you apply for the mortgage. Your lender will prepare an extra copy of the above documents to be submitted to the Merrimack Valley Housing Partnership.
Application Deadline: The deadline for submitting required documents to the Merrimack Valley Housing Partnership is the second Wednesday of each month. Closings must take place at the end of the month. No exceptions will be made to this policy.
Payback Terms: 20% of the loan is paid back to LDFC in five annual installments beginning on the 5th anniversary of the loan. The entire loan is due upon sale, transfer or refinancing. There is a one-time $100 processing fee added to the 1st payment.
Note: If using a MassHousing mortgage, loan payments to the LDFC must be made monthly (60 payments) rather than annually. Payments start on the 4th anniversary of the loan. This payment must be included in the debt ratio.
Note: FHA Mortgages cannot be used with this program.
Lenders should send complete packages to the Merrimack Valley Housing Partnership.
* FAXED FILES ARE NOT ACCEPTED
|By FED EX or UPS||By Regular Mail|
|67 Middle St., Suite 501|
Lowell, MA., 01852
|P.O. Box 1042|
Lowell, MA., 01853
For questions, please call the Merrimack Valley Housing Partnership office
at (978) 459-8490.
The mortgage clause should be on the insurance binder and read as follows:
Lowell Development & Financial Corporation, 660 Suffolk Street, Suite 120, Lowell, MA 01854
The Massachusetts Division of Banks requires that the Merrimack Valley Housing Partnership be licensed as a Mortgage Broker since we assist in the promotion and administration of down payment assistance programs. It also requires that our executive director be licensed as a mortgage originator.
Merrimack Valley Housing Partnership: Mortgage Broker License Number: 394805
Edward Alcantara: Mortgage Originator License Number: 1286453
James Wilde: Mortgage Originator License Number: 395036