Down Payment Assistance > Lowell Development & Financial Corporation (LDFC)
What is it? The LDFC provides a no-interest loan for 2.5% of the purchase price based on a 5% down payment . It provides a loan for 1.5% of the purchase price based on a 3% down payment. The maximum amount of assistance is $5,000.
Who is Eligible?
The buyer must be a first time homebuyer.
The home must be in Lowell.
The buyer must complete a homebuyer training program.
The property must be a condominium, single or two-family house.
Household income limits are:
1-2 People in the Family $81,600
3 or More People in the Family $93,800
This assistance is available for condos, one or two family homes ONLY.
The Following Documents Must be Submitted to Apply:
- Underwriter’s Worksheet
- Loan Application
- Federal tax returns for the past 3 years
- Employment Verification
- Credit Report
- Purchase & Sale Agreement
- Property Appraisal
- Lender’s Commitment Letter
- Attorney, name, address, phone, fax
The 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. All applications are reviewed on a case-by-case basis. Examples of factors which may negatively affect a decision include excessive debt, excessive payment shock from to owning, and if a full-time job per person on an application is not suffucient to meet the mortgage payment.
Procedure: Let your lender know that you want to apply for the downpayment assistance at the time you apply for the mortgage. Your banker will prepare an extra copy of the above documents to be submitted to the Merrimack Valley Housing Partnership. We will process your application and then forward the package to the Lowell Development & Financial Corporation (LDFC).
Application Deadline: The LDFC meets once a month to review downpayment assistance applications. The deadline for submitting applications to MVHP is the second Wednesday of each month.
Payback terms: 20% of the loan is paid back to the LDFC in 5 annual installments beginning on the 5th anniversary of the loan. The entire loan is due upon sale, transfer or refinancing. There will be a one time $100 processing fee added to the first payment.
If the LDFC program is used in conjunction with an FHA mortgage, please call the MVHP office for special instructions. (978) 459-8490.