North Suburban Consortium (NSC) offers Down Payment Assistance loans (DPA) to income-eligible First Time Home Buyers (one who has had no homeownership interest in a principal residence during the past 3 years OR a displaced homemaker or single parent who has only owned a home with a former spouse while married) (FTHB) purchasing a condominium, townhome or single-family property in one of the eight NSC communities. DPA can be used for down payment assistance and customary closing costs. However, it cannot be used for: reimbursement for previously paid earnest money down payment; funding monthly housing payment reserves requirements; prepayment of life insurance premiums; or to bridge the gap between purchase price and appraised value. Applicant cannot receive money back at closing. Applicant’s primary mortgage lender must fund the DPA amount at closing and that lender will be reimbursed after closing.
DPA: UP TO $7,500.00 for a non-subsidized property; UP TO $3,000.00 for a HOME-subsidized property (the loan amount will be determined at completion of NSC underwriting process). DPA is a 0% interest, no monthly payments, five (5) year loan. Each year, on the anniversary date, 20% of the original DPA amount is forgiven. After five (5) years, the loan is forgiven completely and the owner will be provided with a discharge of mortgage that they must record at the appropriate registry of deeds. Owner must live in the property as their primary residence. NSC does not subordinate DPA. If an owner refinances, sells or no longer resides in the property before the end of the term, they will be required to repay a pro-rated portion of the DPA.
Please allow three to four weeks from date of submission to the NSC for review of the DPA Loan Application and required documentation, completion of loan underwriting process, inspection, document preparation, contact with primary mortgage lender and closing attorney, etc.
How Do I Qualify?
1. Primary Mortgage Financing: Applicant must obtain primary fixed interest rate mortgage financing from a lender. Massachusetts Housing Partnership ONE Mortgage Program, Mass. Housing Mass Advantage, VA and FHA loans are all approved mortgage products. Applicant should contact a bank for pre-approvals and to obtain primary mortgage financing. (Primary mortgage lender must fund the DPA amount at closing; the lender will be reimbursed after the Malden Redevelopment Authority receives original executed NSC Promissory Note, copy of recorded NSC Mortgage and copy of the closing Settlement Statement.) Information about mortgage products, resources, buying a home, lenders and home buyer counseling can also be found at My Mass Mortgage and HUD Homeownership Assistance websites.
2. Home Buyer Counseling: Applicant is required to attend and complete a FTHB counseling workshop. Effective August 1, 2020, homebuyer counseling must be performed by a HUD certified counseling agency. Click here for a list of HUD certified counseling agencies in Massachusetts.
3. Income Qualifications: Applicant's combined household income (gross income) must fall at or below the 80% MFI income limits set by the U.S. Department of Housing and Urban Development (HUD). Income from ALL household members 18 years of age or older must be included, however, in certain circumstances, full time student dependents' income may be excluded.
Applicant/Household (gross) income cannot exceed 80% Median Family Income (MFI) Limits set by HUD annually. HUD Income Limits 80% MFI (effective July 1, 2020):
1 person household: $67,400.00 2 person household: $77,000.00
3 person household: $86,650.00 4 person household: $96,250.00
5 person household: $103,950.00 6 person household: $111,650.00
7 person household: $119,350.00 8 person household: $127,050.00
4. Other Qualifications: The property purchased cannot exceed Purchase Price Limits (April 15, 2019).
Existing and New Housing
- Revere, Chelsea, Winthrop (Suffolk County): 1 Unit - $458,000.00 (existing or new housing)
- Malden, Medford, Melrose, Arlington, Everett (Middlesex County): 1 Unit - $407,000.00 (existing housing); 1 Unit - $464,000.00 (new housing)
Asset Limits: Applicant cannot have more than $75,000.00 in liquid assets. Liquid assets include stocks, bonds, CDs, as well as cash, savings and trust funds (retirement accounts are not included in asset limits).
Credit Score: Applicant must have a minimum credit score of 620 for a condominium, townhome or single-family property purchase. If there is more than one Applicant, the average of the Applicants' credit scores must be a minimum of 620.
Inspection: A housing quality standards inspection will be completed - at no cost to Applicant - to ensure the property meets state and federal housing codes.
Housing-to-Income Ratio (HTI): Applicant can have a maximum HTI of 35% for a condominium, townhome or single-family property purchase. The HTI is the ratio of the Applicant's complete monthly mortgage payment consisting of principal, interest, taxes, insurance and condominium fee (PITI) to the Applicant's total monthly household income. (Primary mortgage lender will issue a truth in lending disclosure or similar document which clearly shows PITI).
Debt-to-Income Ratio (DTI): Applicant can have a maximum total DTI of 50% for a condominium, townhome or single-family property purchase. The total DTI includes other debt such as student loans and consumer debt in addition to housing debt.
Sufficient Cash Reserves (post-closing): Applicant must have sufficient cash reserves on hand, including the amount of DPA offered, to pay two months' PITI.
How Do I Apply?
DPA Loan Application should only be submitted when the Applicant has signed a Purchase and Sale Agreement to purchase a condominium, townhome or single-family property.
Complete the DPA Loan Application (Application) then contact the NSC community representative for the city/town where the property being purchased is located (see contact information below) to make arrangements to submit to the NSC community representative the completed Application and all required documentation (by mail or hand delivery - no emails accepted). All documents listed below and shown on the Application checklist must be submitted with the Application unless it is noted that the NSC will prepare certain document(s) or that certain document(s) will be signed at closing.
- Signed Purchase and Sale Agreement
- Voluntary Sale Disclosure (to be signed by seller prior to signing Purchase and Sale Agreement)
- Right to Withdraw (to be signed by seller if Purchase and Sale Agreement has already been signed)
- Evidence of permanent resident alien status or legal alien status, if applicable, for Applicant, Co-Applicant and all other household members age 18 or older
- Authorization for Release of Information Form (a separate form must be completed by Applicant, Co-Applicant and all other household members age 18 or older)
- Primary (fixed interest rate) mortgage financing Loan Application
- Primary (fixed interest rate) mortgage financing Commitment Letter from qualified lender
- Form 1008 Uniform Loan Transmittal Summary issued by Applicant's primary mortgage lender
- Truth in Lending Disclosure or similar documents issued by Applicant's primary mortgage lender (detailing PITI)
- Copy of complete credit report (or credit reports if more than one Applicant)
- Certificate from FTHB counseling workshop (not more than two years old)
- If self-employed, copies of current year-to-date profit and loss statement and copies of 3 years federal tax returns (including ALL schedules)
- Copies of 3 most recent years federal tax returns (including ALL schedules) and 3 most recent years W2s from ALL employers for Applicant, Co-Applicant and all other household members age 18 and older
- Copies of 3 most recent months statements for ALL accounts including stocks, bonds, CDs, cash, savings,checking, trust funds for Applicant, Co-Applicant and all other household members age 18 and older
- Copies of 3 most recent months statements for ALL 401Ks, IRAs, stocks, bonds, retirement/pension accounts for Applicant, Co-Applicant and all other household members age 18 and older
- Copies of 3 most recent months paystubs (from ALL employers) for Applicant, Co-Applicant and all other household members age 18 and older
- Copy of current Social Security award letter(s), including disability income, if applicable, for Applicant, Co-Applicant and all other household members age 18 and older
- Proof of "other" income sources including alimony, child support, welfare assistance, etc., for Applicant, Co-Applicant and all other household members age 18 and older
- Divorce decree, if applicable
- Zero Income Affidavit (a separate affidavit must be completed by every household member age 18 and older who has no income)
- Liquid Asset Certification
- IRS Certification AND Form 4506-T
- Housing Quality Standards (HQS) Disclosure
- HOME Written Agreement (NSC will prepare - Applicant to sign when DPA Commitment Letter is issued)
- Recapture Agreement (NSC will prepare - Applicant to sign when DPA Commitment Letter is issued)
- NSC Promissory Note (to be signed at closing)
- NSC Mortgage (to be signed at closing)
Upon approval, Applicant will receive and be required to sign: Commitment Letter for DPA; Recapture Agreement acknowledging that DPA amount can be recaptured if the owner no longer resides in the property or if the property is refinanced, sold or transferred within five (5) years; and HOME Written Agreement evidencing the household and property complies with all of HUD’s standards.
At closing, Applicant must execute NSC Promissory Note and Mortgage for DPA (closing attorney/settlement agent must record NSC Mortgage at the appropriate registry of deeds). These documents will be provided to the closing attorney/settlement agent (NSC Promissory Note and Mortgage can also be found above).
Malden: Maureen Taylor 781-324-5720 x 5730, firstname.lastname@example.org
Medford: Ashley Williams 781-393-2480, email@example.com
Arlington: Erin Zwirko 781-316-3092, firstname.lastname@example.org
Chelsea: Alex Train 617-466-4187, email@example.com
Everett: Tony Sousa 617-394-2334, firstname.lastname@example.org
Melrose: Emma Schnur 781-979-4193, email@example.com
Revere: Bethany Rosa 781-286-8112, firstname.lastname@example.org
Winthrop: Tanji Cifuni 617-892-2624, email@example.com
Lender and Closing Attorney/Settlement Agent Information:
For lender reimbursement, the closing attorney/settlement agent must submit the following to the Malden Redevelopment Authority: Original NSC Promissory Note; copy of recorded NSC Mortgage; copy of closing settlement statement (that shows DPA amount).
By USPS, UPS, FedEx or Courier to: Malden Redevelopment Authority, 215 Pleasant Street, Third Floor, Malden, MA 02148 ATTN: HOME Program Director
If the property purchased is a HOME-subsidized property subject to NSC affordable housing covenant (AHC), the closing attorney/settlement agent will be provided with an AHC for signing by buyers at closing and recording at the appropriate registry of deeds. A copy of the recorded AHC must be returned to the Malden Redevelopment Authority along with required DPA loan documents noted above, etc. Note: Recapture Agreement is not necessary if the property is subject to an AHC.