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Homebuyer Assistance Individual Homebuyer Counseling Potential homebuyers meet with a homebuyer counselor in a confidential setting to discuss a variety of topics to determine their readiness to buy a home. The counseling session typically focuses on the household income and any credit and debt issues or concerns the household may have. Potential homebuyers get a sense of what size mortgage they might qualify for based on their current financial standing and are introduced to sound financial planning concepts needed to successfully purchase and maintain a home. Various mortgage products that are available to the first time homebuyer are discussed. Once a homebuyer has purchased a home, the homebuyer counselor is available for post-purchase counseling too. Topics covered in these sessions might include: budgeting for home repairs and routine maintenance and staying out of debt. All counseling sessions are free of charge. Contact Bea at beavh@hilltowncdc.org or (413) 296-4536, ext. 15. First Time Homebuyer Workshops First Time Homebuyer workshops are offered four times a year through Hilltown CDC. These workshops are free of charge and are packed full of information. Pre-registration is required. Participants will receive a certificate of completion that is necessary to use certain state-subsidized mortgage products such as the Soft Second Program and the Mass Housing Loan Program. There are usually 3 or 4 classes in each workshop series. Participants will learn how to select a team of professionals to help with the purchase of a home; which mortgage products are available to first time homebuyers; how to prioritize housing wants and needs; what happens at a home inspection; how to make an offer on a house; what happens at the purchase and sale signing and the closing; how much insurance is necessary; and more! Professionals in each of these housing disciplines present the material. The curriculum is approved by the Citizen’s Housing and Planning Association (CHAPA). Contact Bea at beavh@hilltowncdc.org or 413-296-4536, ext 15 to find out about the next scheduled workshop. Direct Financial Assistance Hilltown CDC provides low- and moderate-income (LMI) first-time homebuyers direct financial assistance for the purchase of a home through grants of up to $4,000 for down-payment/closing costs, and/or a deferred payment loan (DPL) of up to $35,000 to assist with acquisition- (not available until summer 2008). The buyer may opt to choose either one or both of these direct financial assistance options based on financial need. In addition, a buyer may choose to decrease the amount of direct financial assistance received in anticipation of utilizing the Hilltown CDC Housing Rehabilitation Program to address health and safety violations found in the home at the time of purchase. Grants for Downpayment and Closing Costs Grants of up to $4,000 are currently available to assist with downpayment and closing costs to income eligible first time homebuyers. Applicants are asked to complete an application after they have an accepted offer to purchase on a house. Applicants must be income eligible and meet other eligibility requirements. Buyers may qualify for a grant if:
** Income guidelines are determined by the department of Housing and Urban Development. Persons at or below 80% of the area median income may be eligible. Call Bea, Homebuyer Counselor at 413-296-4536, ext 15 or beavh@hilltowncdc.org for details. Deferred Payment Loans for Acquisition Financing (and rehabilitation if applicable) Deferred Payment Loans of up to $35,000 may be available beginning in late summer 2008 to assist with acquisition financing to income eligible first time homebuyers. These are fifteen-year, deferred payment, 0% interest loans, with 6.67% forgiven each year. If the homeowner sells anytime within the fifteen years, repayment of the loan will be required based on the forgiveness schedule. Buyers may choose to decrease the amount of direct financial assistance received in anticipation of utilizing the Hilltown CDC Housing Rehabilitation Program to address health and safety violations found in the home at the time of purchase. Applicants are asked to complete an application after they have an accepted Offer to Purchase on a house. During the home inspection period a lead inspector will visit the property (if applicable due to age of house), along with a rehab specialist to determine eligible work. A cost estimate will be provided and the buyer, along with Program staff will make a determination of financial assistance to be provided between the two Programs. Applicants must be income eligible and meet other eligibility requirements. Buyers may qualify for acquisition financing if:
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