The LDFC (Lowell Development Financial Corporation) 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.

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.

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.

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.

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

For questions, please call the Merrimack Valley Housing Partnership office
at (978) 459-8490.