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Two for Lowell

Down Payment and Closing Cost Assistance

Loan A - Application for Federal Funds

The City of Lowell has a federally funded HOME Pilot Program for down payment and closing cost assistance for owner occupied first-time homebuyers purchasing a two, three, or four family home. The five year forgivable loan of up to $10,000 will not have to be repaid if all program rules are adhered to.


Eligibility Requirements:

  1. You must meet HUD’s definition of a First-Time Homebuyer
  2. You must purchase a two, three or four family home in the City of Lowell
  3. You must be income eligible

Income Requirements:

Family Size Income Not To Exceed
1 $45,100
2 $51,550
3 $58,000
4 $64,400
5 $69,600
6 $74,750
7 $79,900
8 $85,050

The Formula:
The amount of assistance a buyer can receive is based on the following formula: Purchase Price of the Property x 4.5% (Amount Not To Exceed $10,000)

Procedure To Apply:
The First-time Homebuyer’s BANKER collects all the necessary documents and submits them to the City of Lowell’s DPD Office. After careful review for eligibility and completeness, the application is either approved or denied and applicants are then notified.

Timing:
Timing is critical. It is the goal of Lowell’s Division of Planning and Development to have checks available for downpayment assistance within three weeks of receipt of a completed HUD package. FTHB funds are delayed if any required documents are missing.

Required Documents (To be submitted by your Banker as part of your application):
  1. Purchase and Sales Agreement
  2. Property Transfer Notification Certification
  3. Primary Mortgage Application
  4. Mortgage Commitment Letter
  5. Tax Returns - past 3 years
  6. Credit Report
  7. Verification of Employment
  8. Five Recent Pay Stubs
  9. Property Appraisal
  10. Deed
  11. Flood Certification
  12. Home Inspection Report
  13. HUD - Housing Quality Standards Report (HQS)
  14. First-Time Home Buyer Training Certificate
  15. City of Lowell First-Time Home Buyer Application

Home Inspections:
A Housing Quality Standard Report (HQS) must be completed by a home inspector in addition to a basic home inspection. If there are items which are not in compliance, the closing can still proceed provided the buyer submit a plan indicating how he/she will address the problems during the first 24 months of ownership. Home Inspection Reports must include cost estimates to repair deficiencies. Applications will not be accepted if the property contains MAJOR MECHANICAL PROBLEMS unless the Seller plans to rectify them prior to closing.

Primary Contact:
Michael LaMotte, Director of Housing Programs
Division of Planning and Development
Phone: (978)446-7200 X1411

-OR-

Jim Wilde, Executive Director
Merrimack Valley Housing Partnership
Phone: (978) 459-8490