Down Payment Assistance > The Town Program

Program Description

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

PARTICIPATING TOWNS

Billerica, Chelmsford, Dracut, Littleton, Tewksbury, Tyngsboro and Westford

This is a federally funded HOME program for down payment and closing cost assistance for first time homebuyers. The amount of assistance a buyer can receive is 5% of the purchase price to a maximum of $10,000.

The assistance becomes a grant after 5 years.  If the property is sold (or refinanced with cash out) prior to 5 years, the full amount of assistance is due to be paid back.

ELIGIBILITY REQUIREMENTS

• You must be a first time homebuyer.
• You must use the property as your principle residence.
• You must be purchasing a home in one of the participating towns.
• Your income must be within the program limits. Documentation of income for all family members is needed, even if not on loan application.
• All members of the household must have a valid social security number.
• Household assets (including retirement accounts) cannot exceed $25,000.
• Applicants must qualify for a mortgage without the assistance of a co-signer.
• The mortgage cannot be for an amount that is less than 90% of the purchase price.
• The property can be a condominium, townhouse or a 1-4 unit house.
  

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

REQUIRED DOCUMENTS

Items supplied by the buyer

1. First Time Homebuyer application– available at MVHP- please submit original
2. Signed copies of federal tax returns for the past 3 years. To request your tax summary     sheet or a letter of non-filing call the IRS at 1-800-829-1040
3. Project Genesis training certificate or equivalent
4. Verification of Employment (VOE) release form – Please sign and return original to     
   MVHP so that we can obtain supporting documentation if needed
5. Three months (12 weeks) of consecutive, recent pay stubs. Depending upon your history
   of wages, MVHP may require up to a year of income documentation
6. Affidavit of No Income (if applicable).  Family members who do not have an income
   should sign this form in the presence of a notary 
7. Supporting Documentation of Household Assets
8. Affidavit of No Assets, (if applicable).  Family members who do not have any assets     
   should sign this form in the presence of a notary
9. Notice to the Seller
10. Home Inspection Report for existing properties. If new construction, a copy of the
    Occupancy Permit is required instead
11. W-9 Form - Tax Payer Identification Number (each buyer needs to complete a form)
12. Lead Paint Inspection (If property built prior to 1978) ***
13. Eligibility Release Form- please sign and return original to MVHP

Items supplied by the lender

1. Bank verification of employment
2. Purchase and Sale Agreement – with Property Transfer Notification Certification
3. Property Appraisal – with copy of deed and flood certification
4. Bank Credit Report
5. Underwriter’s Worksheet (or Form 1008, or Macaw Sheet or Transmittal Summary)
6. Mortgage Application
7. Bank Commitment Letter
8. Attorney’s Name, Address, Phone #, Fax #, and Closing Date

HOME INSPECTION and “HQS” REPORTS

Applications cannot be processed if there are major mechanical problems unless the seller plans to rectify them prior to closing. A Housing Quality Standards (HQS) report is completed by MVHP before closing.

***LEAD PAINT INSPECTIONS

If a property was constructed prior to 1978, the buyer must have a lead paint inspection. Houses need to be “lead safe”. Properties must meet the Massachusetts lead law regardless of the presence of children under six. MASSHOUSING provides a lead paint removal program which can be applied for prior to closing.

TO APPLY

The lender and buyer/s prepare all the necessary documents and submit them to the Merrimack Valley Housing Partnership (MVHP). After reviewing the applications for eligibility and completeness, MVHP prepares the legal documents and forwards the funds to the closing attorney. 
Lenders should send a complete package to the MVHP.

Faxed files are not accepted.

By Federal Express, UPS, etc.                                 
Merrimack Valley Housing Partnership             
10 Kirk Street                                                             
Lowell, MA 01852                                                      

By Regular Mail
Merrimack Valley Housing Partnership
P.O. Box 1042
Lowell, MA 01853

Once a complete application has been submitted to the MVHP, plan on approximately 3 weeks for the funds to be forwarded to the closing attorney.

Prior to closing, applicants must meet with the Merrimack Valley Housing Partnership to review the terms and conditions of the assistance program. This can be done at the same time that the documents are signed.

For further information please contact:

The Merrimack Valley Housing Partnership

Tel: (978) 459-8490
Fax: (978) 459-0194