Enhanced First-Time Homebuyer Program

Enhanced First-Time Homebuyer Program

 The City of New Bedford, through its Office of Housing and Community Development, has allocated American Rescue Plan Act (ARPA) funds to provide assistance with down payment, closing costs and interest rate buydown to eligible New Bedford residents purchasing their first home. This helps address housing affordability challenges, particularly for low-and moderate-income households impacted by COVID, facilitating access to homeownership and promoting economic recovery.

• Assistance must be used for down payment, and additional funds may be used for closing costs, and an interest rate buydown up to 1 point.
• Grant requires no repayment as long as homebuyers occupy the property for 5 years.
• Eligible applicants may receive up to a maximum of $35,000 subject to eligibility requirements noted below.
• Property must meet appraisal/ inspection requirements, and must be an “arm’s length transaction.”

For Enhanced First-Time Homebuyer Description click here.

Eligible Activities:

Down Payment and Closing Cost Assistance based on need:

• Total amount for down payment/ closing cost assistance is up to a maximum of $25,000, including interest rate buydown up to 1 point.
• City Workers: (City, School, Police & Fire Departments) Eligible for an extra $10,000

Maximum Income:

Applicant(s) may earn up to 120% of the area median income (AM) All sources of household income will be included in calculating income.

Maximum Household Income:

• The property being purchased must be located in New Bedford.
• Homebuyer must be current New Bedford resident.
• First-time Homebuyer. All Eligible Borrowers must attest that they are first-time homebuyers and agree to live in the property as their primary residence.
• Any home to be purchased under this program must be owner-occupied. Properties with rental units must be vacant at the time an offer to purchase is made on the residence to ensure that the acquisition of the residence will not result in tenant displacement.
• May be combined with other homebuyer assistance programs.
• Applicants cannot receive cash back. Must provide minimum down payment of first mortgage lender AND must meet city underwriting requirements.
• A Rehab Specialist will conduct a walk-through of the property. The property must meet appraisal and inspection standards.
• For properties that will have children under the age of six (6) years old, the property must pass a visual inspection to determine if the property is “lead safe” (i.e.: no peeling, chipping or flaking paint) prior to any assistance.
• Applicants will be required to attend a CHAPA approved seminar/workshop designed to provide information about becoming a first-time homebuyer. Applicant(s) must attend Landlord training if purchasing a multi-family property. For more information, please visit, newbedford-ma.gov/housing-community-development/, CHAPA.org and  mymasshome.org.

• Must have a signed purchase & sales agreement to start the application process. Only applications that are fully complete and include all required documents will be considered and processed in the order of their submission.
• The application process typically takes a minimum of 45 to 60 days from the date of submission to the Office of Housing & Community Development.

For questions, concerns, or further information regarding the Enhanced First Time Homebuyer Program, please feel free to reach out to our program coordinator. Assistance is available to guide you through the process.

Alexandra Vasconcelos
Affordable Housing Specialist
508-979-1500
Alexandra.Vasconcelos@newbedford-ma.gov
608 Pleasant Street
New Bedford, MA 02740