Neighborhoods First - First-Time Homebuyer Assistance Program

What is Neighborhoods First - First-Time Homebuyer Assistance Program?

Neighborhoods First - First-Time Homebuyer Assistance Program is a deferred second loan for homebuyers in New Bedford, Massachusetts.

• Neighborhoods First is the City of New Bedford's longstanding HUD HOME-funded down-payment and closing-cost assistance program for low-income (<=80% AMI) first-time homebuyers. It functions as a 0% interest deferred-payment second mortgage and is administered by the New Bedford Office of Housing & Community Development. The program operates alongside the larger ARPA-funded Enhanced FTHB Program (up to 120% AMI).
• HUD HOME-funded down-payment and closing-cost assistance up to $10,000 for income-eligible (<= 80% AMI) first-time homebuyers purchasing within the City of New Bedford. Structured as a 0% interest deferred-payment second mortgage repayable upon sale, refinance with cash-out, or loss of primary residence.
• subject to HUD HOME affordability period (typically 5-15 years depending on subsidy amount).
• Funding comes from HOME, Federal, and Local Government.

Do you have to pay it back?

Neighborhoods First - First-Time Homebuyer Assistance Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by Deferred 0% second-mortgage repayable upon sale, refinance with cash-out, transfer of title, or loss of primary-residence status and recapture per HUD HOME affordability rules.
• 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?

Neighborhoods First - First-Time Homebuyer 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?

Neighborhoods First - First-Time Homebuyer 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 New Bedford HMFA: ~$61,350 1-person, $70,100 2-person, $78,850 3-person, $87,600 4-person, up to ~$115,650 8-person (FY26).
• The limit applies to total household income, not only the borrower&rsquo;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?

Neighborhoods First - First-Time Homebuyer Assistance Program caps the purchase price as follows: Subject to HUD HOME 95% area median purchase price limits for the New Bedford HMFA.

• 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?

Neighborhoods First - First-Time Homebuyer Assistance Program serves buyers purchasing in New Bedford, Massachusetts.

• The program targets specific areas: City of New Bedford with focus on HUD-designated CDBG / Neighborhood Strategy areas.

How do you apply?

Applications for Neighborhoods First - First-Time Homebuyer 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-education provider (PACE, NeighborWorks Southern Mass); pre-purchase education and post-purchase session required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-come, first-served upon HCD application 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.