The City of Chelsea is offering Down Payment Assistance to income-eligible First Time Home Buyers. Income eligible applicants may seek up to 50% of their required down payment, up to $10,000 in funds. Applicants must have had no homeownership interest in a principal residence during the past 3 years OR be a displaced homemaker or single parent who has only owned a home with a former spouse while married. The program is open to households with an annual household income up to 80% of the Area Median Income. The First Time Home Buyer must be purchasing a condominium, townhome or single-family property in the City of Chelsea. The funding can be used for down payment assistance and customary closing costs.
The Down Payment Assistance is a 0% interest, no monthly payments, five (5) year loan. Each year, on the anniversary date, 20% of the original loan amount is forgiven. After five (5) years, the loan is forgiven completely and the owner will be provided with a discharge of mortgage that they must record at the registry of deeds. Owner must live in the property as their primary residence. The City of Chelsea does not subordinate Down Payment Assistance. If an owner refinances, sells or no longer resides in the property before the end of the term, they will be required to repay a pro-rated portion of the Down Payment Assistance.
Please allow three to four weeks from application submission for review of application and documentation, loan underwriting, inspections, document preparation, contact with primary mortgage lender, closing attorney, etc.
Please contact Sayou Cooper, Housing Planner for further information at scooper@chelseama.gov or 617-466-4188.