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Lowell
Development & Financial Corporation (LDFC)
Down
Payment Assistance
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 $80,400
3 or More
People in the Family $92,400
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. |
footerWho
We Are -- Course Information
-- Down Payment Assistance -- Contributors
FAQ -- Directions
-- Seal of Approval / Code of Ethics
-- Related Links -- Credit
Reports
Merrimack
Valley Housing Partnership
P.O. Box 1042 Lowell, MA 01853-1042
Tel:(978) 459-8490
Fax:(978) 459-0194
E Mail: mvhp1@aol.com
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