Market Context
Massachusetts homebuyers face a high-cost housing market where down payment and closing costs can delay otherwise qualified buyers from purchasing. In markets with elevated prices and limited inventory, upfront cash often becomes the barrier before monthly affordability is even tested.
For first-time buyers, a targeted homebuyer program can change the amount of cash needed at closing. This program is structured as down payment assistance and closing cost assistance for eligible buyers purchasing in Brockton.
What This Program Provides
The Brockton $10,000 Deferred DPA Loan – First-Time Homebuyers program provides up to $10,000 in assistance.
The program is provided by NeighborWorks Housing Solutions.
Funds may be used for:
- Down payment
- Closing costs
- Upfront mortgage insurance premiums
- Other applicable mortgage costs related to the home purchase
Program Structure
This program provides assistance as a deferred loan.
Repayment is required. The loan is not forgivable.
Repayment is triggered when the home is sold, title is transferred, the property is no longer the buyer’s primary residence, or in some cases, when the buyer completes a cash-out refinance.
The interest rate is 0%.
Key Numbers
- Maximum assistance: $10,000
- Minimum assistance: N/A
- Minimum borrower contribution: 2% or $2,000 from the borrower’s own funds
- Income limit: 80% of AMI within Plymouth County
- Asset limit: $75,000, excluding 401(k), retirement savings or education savings
- Interest rate: 0%
- Credit score requirement: Not publicly disclosed
- First mortgage limits: Mortgage loan must be under HUD’s conforming loan limits for the area
- Program availability: Subject to funding availability and awarded on a first-come, first-served basis
Eligibility Requirements
- Buyer must be a first-time homebuyer.
- Buyer must not have owned a home in the past three years.
- Household income must be at or below 80% of AMI within Plymouth County.
- Household size is used to determine income eligibility.
- Income from all household members over age 18 who work is counted, with stated exceptions for foster children and foster adults.
- Buyer must have no more than $75,000 in assets, excluding 401(k), retirement savings or education savings.
- Buyer must complete a HUD and CHAPA certified First-Time Homebuyer Education program.
- Buyer must have a valid First-Time Homebuyer Certificate.
- Buyer must have a signed purchase and sales agreement before submitting an application.
- Citizenship status requirement: Not publicly disclosed.
- Profession-based eligibility requirement: Not publicly disclosed.
- Current residency requirement: Not publicly disclosed.
Property Requirements
- The property must be located in Brockton, Massachusetts.
- The property must be in Plymouth County.
- Eligible property types include one- to four-family homes and condominiums.
- The home must be used as the buyer’s primary residence.
- The program cannot be used for second homes.
- The program cannot be used for vacation homes.
- The program cannot be used for non-owner-occupied investment properties.
How the Process Works
- Get pre-approved, complete a HUD-approved homebuyer course, find a home and secure an accepted offer.
- Submit the completed application with required documents, including IDs, pre-approval, purchase contract, income documents, asset documents and credit information.
- Receive conditional approval after eligibility is confirmed.
- Go through underwriting and meet the minimum borrower contribution requirement.
- Receive final approval and a commitment letter.
- NeighborWorks Housing Solutions disburses funds at closing.
- Close on the home.
Affordability Impact
This program reduces the upfront cash required to buy a home. The assistance can be applied toward down payment, closing costs, upfront mortgage insurance premiums and other mortgage-related costs tied to the purchase.
This program does not reduce the monthly payment. It reduces upfront cash required.
Because the assistance is structured as a deferred loan, the buyer does not repay the assistance through regular monthly payments based on the information provided. Repayment is tied to sale, title transfer, loss of primary residence status or certain cash-out refinance situations.
Geographic Context
This is a Massachusetts homebuyer program with a local property requirement. The home must be located in Brockton, which means the assistance is not available statewide for purchases in other Massachusetts cities.
Brockton sits within Plymouth County, and income eligibility is tied to 80% of AMI within Plymouth County. That matters because income limits can vary by geography and household size.
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