First Time Homeowner Downpayment Assistance Program

What is First Time Homeowner Downpayment Assistance Program?

First Time Homeowner Downpayment Assistance Program is a forgivable loan for homebuyers in Haverhill, Massachusetts.

• The City of Haverhill's First Time Homeowner Downpayment Assistance Program is a HUD HOME-funded forgivable loan targeted at the Mount Washington and Lower Acre neighborhoods - two HUD-designated low-and-moderate-income census tracts where the City directs neighborhood revitalization investment. Up to $15,000 is provided as a 5-year, 20%-per-year forgivable second mortgage administered by the Community Development Department.
• Up to $15,000 for down payment and/or closing costs as a 0% interest forgivable loan for eligible first-time homebuyers purchasing in the Mount Washington and Lower Acre neighborhoods of Haverhill (designated low- and moderate-income target areas). Loan term is 5 years with 20% of original balance forgiven each year that the buyer occupies the property as primary residence.
• fully forgiven at year 5.
• Funding comes from HOME, CDBG, Federal, and Local Government.

Do you have to pay it back?

First Time Homeowner Downpayment Assistance Program is forgiven after 5 years, so a buyer who stays that long does not repay it.

• Repayment is triggered by 0% interest forgivable loan and balance forgiven 20% per year over 5 years of continuous primary occupancy. Pro-rata recapture if buyer sells, transfers, or vacates the property prior to year 5.
• The assistance is recorded in 2 position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

First Time Homeowner Downpayment Assistance Program is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

First Time Homeowner Downpayment Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

• Household income at or below 80% AMI Lawrence/Lowell HMFA: approx. $68,500 1-person to $129,100 8-person (FY26).
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

First Time Homeowner Downpayment Assistance Program caps the purchase price at $939,000.

• Eligible property types include Single-family detached, Two-family, Three-family, and Condominium.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

First Time Homeowner Downpayment Assistance Program serves buyers purchasing in Haverhill, Massachusetts.

• The program targets specific areas: Mount Washington and Lower Acre neighborhoods within the City of Haverhill (HUD low/mod-income target areas).

How do you apply?

Applications for First Time Homeowner Downpayment Assistance Program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved homebuyer counseling (MVHP, North Shore HOME Consortium counselors, NeighborWorks); 8-hour pre-purchase certificate required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-come, first-served upon application to Haverhill CDD with lender pre-approval., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.