Lowell Development & Financial Corp.

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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.

The mortgage clause should be on the insurance binder and read as follows:

Eligibility

Buyers must be first-time homebuyers.

Maximum Household Income

$153,900 (There are exceptions for UMass Lowell and City of Lowell employees.)

Required Documents

  1. Underwriter’s Worksheet
  2. Loan Application
  3. 3 Years of Tax Returns
  4. Employment Verification
  5. Credit Report
  6. Purchase & Sale Agreement
  7. Property Appraisal
  8. Commitment Letter
  9. First-Time Homebuyer Certificate (for all borrowers)
  10. Landlord Training Certificate (if buying a two-family house)
  11. Loan Estimate

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. Applications are reviewed on a case-by-case basis. Examples of factors that 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: Call Merrimack Valley Housing Partnership at 978-459-8490 or email Jenny@mvhp.org.

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. 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.

Fees: One-time recording fee of $205 paid at closing.

Note: FHA Mortgages are not eligible to utilize this program.