Down Payment Assistance > Lowell > Description & Instructions

Overview City of Lowell "HOME" Programs -> Description and Instructions -> Application -> Mortgage Security and Agreement -> Deferred-Payment Loan Prommisory Loan -> Home Program Agreement Lowell Development and Financial Corporation Program The Town Program -> Program Description -> Application

The City of Lowell has a federally funded HOME program for down payment and closing cost assistance for first time homebuyers.  This is a no-interest loan program.  The amount of assistance received will be due upon sale or refinancing (if equity is taken).

ELIGIBILITY REQUIREMENTS

• You must be a first time homebuyer.
• You must be purchasing a home in Lowell.
• Your income must be within established limits.
• All members of the household must have a valid social security number.

INCOME LIMITS

Family Size          Maximum Annual Household Income

1.                                      $43,050
2.                                      $49,200
3.                                      $55,350
4.                                      $61,500
5.                                      $66,400
6.                                      $71,350
7.                                      $76,250
8.                                      $81,200

PROCEDURE TO APPLY

The homebuyer’s LENDER prepares all the necessary documents and submits them to Merrimack Valley Housing Partnership (MVHP).  After reviewing the applications for eligibility and completeness, the MVHP prepares three legal documents and submits the package to Lowell’s Division of Planning & Development (DPD).

Lenders should send complete packages to the MVHP.

By UPS, Air Born Express, etc. MVHP 10 Kirk Street Lowell, MA 01852

By Regular Mail MVHP P.O. Box 1042 Lowell, MA 01853

Please use our Post Office box if sending regular mail.

TIMING

It is the goal of the Lowell’s Division of Planning and Development to have checks available three weeks from receipt of a complete package, as defined by HUD.                                   

THE FORMULA

The amount of assistance a buyer can receive is based on the following formula:

41/2 % of the purchase price

TO A MAXIMUM OF $10,000

REQUIRED DOCUMENTS

Items supplied by the buyer- to the lender

1. Signed copies of federal tax returns for the past 3 years (To request your tax summary sheet for the past 3 years call the IRS at 1-800-829-1040)
2. Home Inspection Report
3. Five consecutive, recent pay stubs (If self employed, provide a Year-to-Date Profit & Loss Statement from an accountant)
4. Home Buyer Training Certificate (from MVHP or other approved agency)
5. City of Lowell First Time Homebuyer Application
6. W-9 Form
7. Notice to Seller

Items supplied by the lender

1. Purchase and Sale Agreement – with Property Transfer Notification Certification
2. Underwriter’s Worksheet
3. Mortgage Application
4. Credit Report
5. Employment Verification
6. Mortgage Commitment Letter
7. Property Appraisal – with copy of deed and flood certification
8. Name, Address, Phone # and Fax of Attorney and Closing Date

HOME INSPECTIONS

Applications will not be accepted if there are MAJOR MECHANICAL PROBLEMS in a house unless the SELLER PLANS TO RECTIFY THEM prior to closing.

For further information, please contact:

The Merrimack Valley Housing Partnership:
Tel: (978) 459-8490
Fax: (978) 459-0194