First Time Homebuyer Program
Medford is able to offer down payment and closing cost assistance (DPA) to first-time homebuyers with federal HOME Program funding through the North Suburban Consortium (NSC).
The North Suburban Consortium offers Down Payment Assistance loans to income eligible First-Time Homebuyers purchasing a condo, townhome, or single-family property in an NSC community (Arlington, Chelsea, Everett, Malden, Medford, Melrose, Revere, Winthrop).
In addition to the down payment, the other significant costs when buying a home are “closing costs:” legal fees, the first payment to your mortgage and sometimes other costs like payment of a reserve of condo fees or taxes, that are paid at the time the home officially becomes yours. These loans can be used to assist with down payment and closing costs.
Effective July 1, 2024, DPA can be up to $10,000.00 for non-subsidized property and for NSC HOME-subsidized property, up to $5,000.00 (amount determined at completion of underwriting). DPA is a 0% interest, 5-year deferred loan. If you stay in your home for at least 5 years, the loan will be forgiven – you will never have to repay it. If you leave before 5 years, you will have to pay back a portion of the loan awarded at the time of sale, pro-rated to the amount of time you stayed in your home. These loans cannot be subordinated, so if an owner refinances, they will also be required to repay a pro-rated portion of the loan.
How to Qualify
For more information about the DPA loan program and eligibility requirements, visit the NSC lead community (City of Malden) website.
You are not required to already be a resident of Medford to apply.
To qualify for DPA, homebuyers must first complete a First Time Homebuyer Workshop. Click here for HUD-certified agencies offering homebuyer counseling.
How to Apply
You must already have an accepted offer on a home to apply for down payment assistance. Download and complete the DPA Application, gather the required documents in the checklist, and contact the Office of Planning, Development, and Sustainability at 781-393-2480 for application intake and any questions about the application process.
Please allow three to four weeks from date of submission for review of DPA Loan Application and supporting documentation, loan underwriting, required inspection, preparation of documents, contact with parties, primary mortgage lender, closing attorney, etc.