Originally posted November 2018; edited March 2024
How awesome would it be if the town you just moved to footed the bill to de-lead your new home? What if you could get a 0% loan for some of your down payment or closing costs too? Free cash? Yes, please! Although they might sound too good to be true, many towns are offering exactly that to buyers through the use of federal grants and HUD programs.
When you’re starting your home search, it can be well worth your time to touch base with the Community or Neighborhood Development office in each of the towns you’re interested in to see what cash they have available. Many get a certain amount each year, so it’s also good to find out when they usually run out so you can keep that in mind if your search takes longer than expected.
Lynn is a great example. Their Neighborhood Development office has applied for federal funding each year since 2009 so that it can GIVE homeowners up to $8K for de-leading costs, no strings attached. Yes, this means that recipients don’t need to repay the cash, and it applies to owner occupiers as well as property investors who rent out an entire multi-family. Check out their website for more details: http://www.lhand.org/neighborhoodServices.aspx
0% loans for down payment and closing costs are usually based on income, and the total amount available varies by town. The most important part is that the loan doesn’t need to be repaid until the home is refinanced or sold! Take a look at these links to see what’s available in your area:
https://www.hud.gov/states/massachusetts/homeownership/buyingprgms
https://www.northshoremahomeprograms.com/other-resources/homebuyer-assistance-programs/