Housing Program Requirements
Here are a few of the 40B program requirements.
- Affordable housing programs such as 40B were created to give Massachusetts residents an opportunity to purchase a home at a significantly reduced price.
- Everyone needs a pre-approval to accompany their application.
- No household members may be a co-signer on the mortgage and the buyer is solely responsible for all down payments and closing costs. There are many lending programs that offer a mortgage with a minimum down-payment of 3% of the purchase price.
- And, at least 1.5% of the down-payment must be sourced from the buyer’s own funds. The balance of the down-payment can be the result of gifted funds or from available closing cost assistance programs.
- The buyer will also need to have funds available to cover all listed pre-paid line items and closing costs.
- There are also post-sale restrictions on the 40B property regarding resale and refinancing. If you decide to sell the home or refinance up the road, please be aware that there is a limit on both. That limit on the resale is determined by something called the Deed Rider and, before you sell or refinance you have to notify the community the house is located in, as well as, the assigned monitoring agent. The home will stay an affordable home in perpetuity, in which another affordable buyer can purchase the affordable home.