There are three parts to Medford’s FTHB program, which is run for us through the North Suburban HOME Consortium (NSC):
1) First Time Homebuyer’s Workshop: Demystifying the home buying process
The City of Medford offers this 4 part class at least once a year at City Hall. The class is certified by CHAPA (Citizens Housing and Planning Association), so it will satisfy the requirement of many homebuyer assistance programs that you take a course on home buying. This class will be offered in Medford in September. If you miss the one in Medford, CHAPA-certified classes are offered in other cities and towns throughout the year. Go to www.chapa.org to find a list of organizations that offer this class or contact the Medford Affordable Housing Specialist to receive a list by mail.
To join the September class, please complete the application and return it with your $60 check to the Malden Redevelopment Authority (address on the application).
Applications may also be picked up from Room 308 in Medford City Hall.
2) Downpayment and Closing Costs Assistance
For many families, putting together the largest possible downpayment is what makes the monthly mortgage costs low enough to afford. Other significant cost when buying a home are “closing costs”: legal fees, the first payment to your mortgage and sometimes other costs like payment of a reserve of condo fees or taxes, that are paid at the time the home officially becomes yours.
First time homebuyers can receive up to $5,000 towards these costs for a single family home or condo, $6,000 for a two-family home or $6500 for a three-family home. There is no interest on this loan. If you stay in your home for at least 10 years, the loan will be forgiven - you will never have to repay it. If you leave before 10 years, you will have to pay back a portion of the loan at the time of sale, pro-rated to the amount of time you stayed in your home.
To apply for the downpayment assistance:
You must already have an accepted offer on on a home to apply for downpayment assistance. At that time you can download the application form. Once you've completed the form, Contact Housing Development Specialist Laura Glynn in the Office of Community Development to complete the application process: 781-393-2520 or lglynn@medford.org.
3) Soft Second Mortgage Program
The Soft Second Mortgage is more affordable than a conventional mortgage because it is split into two loans, and the second one is subsidized by funds from the State. With Soft Second:
• You won’t need Private Mortgage Insurance (PMI), a potential savings of $60 - $75 a month
• You will have a relatively low fixed rate on the first (non subsidized) mortgage
• You will have a discounted and fixed rate (for 5 years) on the second mortgage with the subsidy
• You will have reduced closing costs as compared to a conventional mortgage
• You can finance up to 97% of the home, so that you can have a downpayment of as little as 3%
Even with help the First Time Homebuyer Program, I still can't afford any of the homes I see on the private market. How can I find out about affordable homes?
To find out when applications for affordable housing lotteries in Medford are available, call or send an e-mail with your name, street address and phone number to eschwarz@medford.org. To find out about lotteries in other cities, see www.chapa.org and click on ”Housing Lotteries” on the left hand side
Who is eligible for the First Time Homebuyer Program?
The Homebuyer’s Workshop is open to anyone of any income and is required in order to apply for the other two parts of the program. For downpayment/closing costs assistance and Soft Second, anyone who is purchasing a home in Medford who falls under the gross annual income limits below, whether or not you are already a resident of the City, may apply. There are higher income limits for the Soft Second Mortgage than for the dowpayment/closing costs assistance. Some households may qualify for Soft Second, but earn too much to receive downpayment/closing costs assistance.
Income limits to qualify for Downpayment/Closing Cost assistance |
Income limits to qualify for the Soft Second Mortgage Program |
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80% AMI |
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100% AMI |
Household of 1 |
46,300 |
Household of 1 |
58,900 |
Household of 2 |
52,900 |
Household of 2 |
67,300 |
Household of 3 |
59,550 |
Household of 3 |
75,700 |
Household of 4 |
66,150 |
Household of 4 |
84,100 |
Household of 5 |
71,450 |
Household of 5 |
90,800 |
Household of 6 |
76,750 |
Household of 6 |
97,600 |
You must also be a First Time Home Buyer.
You are considered to be a First Time Homebuyer if: You have not had an ownership interest in a residence for the past three years. OR you meet the federal government's definition of a "displaced homemaker" AND You will
reside in the property you purchase. |
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