All applicants must provide a pre-approval from a conventional lender. Applications maybe rejected if submitted without a pre-approval or an unacceptable pre-approval with FHA or VA financing. The pre-approval must state the following:
- DOWN PAYMENT – Must be at least 3% of the purchase price, at least half of which must come from the buyer’s funds unless the Eligible Subsidy Program permits a smaller down payment.
- LOAN AMOUNT – Mortgage loan must be a 30-year fully amortizing mortgage for not more than 97% of the purchase price with a fixed interest rate that is not more than 2 percentage points above the current MassHousing interest rate (www.masshousing.com).
- MONTHLY HOUSING COST – Monthly housing costs (inclusive of principal, interest, property taxes, hazard insurance, private mortgage insurance and condominium or homeowner association fees) shall not exceed 38% of monthly income for a household earning 80% of area median income, adjusted for household size
- FHA & VA LOANS – These types of loans are not acceptable. The affordable homes will have a deed restriction known as a Deed Rider. The purpose of the deed restriction is to make certain the home stays affordable in perpetuity and survives foreclosure. Therefore, FHA and VA will not accept this Deed Restriction.
Delphic has nurtured a relationship with several lenders who are familiar with the Deed Rider and the 40B program. Several of these lenders offer the following:
- USDA 100%
- Mass Housing down payment and closing cost assistance programs
- Federal Home Loan Bank grants of up to $15,000 (Builder Equity Program)
Please refer to our Web site under financing.