Information

Homebuyer

 

Guidelines

HomeBuyer — HOME Program

ELIGIBLE PROPERTIES
  • One to four-family properties, manufactured or mobile homes, condominiums or cooperatives located in Fall River, meeting the FHA Mortgage Limits for the area.
  • Property must meet Section 8 Housing Quality Standards (HQS) and pass a visual assessment for lead-base paint.
  • Appraised value must have sufficient equity to protect all lenders.
ELIGIBLE BORROWERS
Borrower must be first-time homebuyer. (i.e., must not have owned a home during the three-year period prior to purchase of a home with HOME assistance.)  Property must be borrower’s principal residence during the affordability period.  Borrower must be income eligible, (See HOME income limits), must not owe any outstanding property taxes or service fees to the City of Fall River, must complete a homebuyers counseling course prior to closing, must be creditworthy, have a minimum credit score of 650 and meet the intent and objectives of the Program, Borrower’s total debt-to-income ratios (front/back) must not exceed 45%. Borrower must obtain a first mortgage from a qualified lender.  Borrower must have post-closing cash of $3,000 but cannot have more than $25,000 in assets.  5 year operating pro-forma must have a positive cash flow. Gap analysis should be neutral (negative gap analysis indicates project is over subsidized) (positive gap analysis indicates inadequate financing).  Loan to value (first position and second position) should be no more than 100% for affordable home ownership.

ELIGIBLE ACTIVITIES
INTEREST RATES
Acquisition: Down payment and closing cost assistance

The Homebuyer Program features an interest rate of 1%. The length of the affordability period is determined as follows:
Dollars per Unit 
Less Than $15,000
$15,001-$40,000
Affordability Period
5 Years
10 Years
LOAN LIMITS & TERMS
  • Up to $10,000 is available for downpayment and closing cost
  • Homebuyer assistance portion of the loan is deferred for the affordability period as long as the borrower complies with the Program regulations during the affordability period. Then, loan will revert to a grant
  • Private leveraging is required. At least 1.5% of the purchase price
  • Private lender must communicate with CDA and provide the necessary requested documentation.
  • Recapture provisions will apply
  • Closing cost for CDA, $627.00