Worcester’s Home Investment for Down Payments

The City of Worcester’s Down Payment Assistance Program aims to support income-qualified first-time homebuyers in achieving their dream of homeownership by providing valuable assistance for down payments and closing costs.

Available Assistance

Through Worcester’s Down Payment Assistance program, eligible individuals and families can access up to $5,000 in down payment and closing cost assistance. This program is made possible through federal funding from the HUD Community Development Block Grant, demonstrating the city’s commitment to helping its residents become homeowners.

Eligibility Requirements

To qualify for the Down Payment Assistance Program, applicants must meet specific criteria:

• First-Time Homebuyer: Applicants must be first-time homebuyers, defined as individuals who have not owned a home in the three years preceding their purchase with assistance funds.
• Income Limit: The program targets low- to moderate-income households. To be eligible, applicants must have a household income at or below 80% of the City of Worcester’s Area Median Income.
• Homeownership Education: Completion of a HUD-certified Massachusetts Homeownership accredited housing education workshop is mandatory to qualify for assistance funds. This educational component ensures that applicants are well-prepared for the responsibilities and challenges of homeownership.

Property Guidelines

The program encompasses a range of property guidelines aimed at ensuring that homes purchased with assistance funds meet certain standards:

• Occupancy: Eligible properties should have been vacant or owner-occupied (solely by the seller’s household) during the three months leading up to the purchase offer. This occupancy requirement continues through the close of escrow.
• Eligible Property Types: The program extends its support to various property types, including single-family homes, two-family homes, three-family homes, and four-family homes. It also covers townhomes and condominiums. If a borrower opts for a new construction property, it’s important to note that the foundation must have been poured before the seller receives the buyer’s purchase offer.
• Purchase Price Limits: The purchase price of the property should not exceed 95% of the median area purchase price for single-family housing. This guideline helps ensure that program participants have access to affordable homes within the Worcester area.
• Compliance: All properties purchased with program funds must adhere to state and local building, zoning, health, and safety codes and ordinances. Additionally, properties located within a 100-year flood zone will require the buyer to obtain flood insurance.

Income Limits

The income limits for the Down Payment Assistance Program are based on household size:

• 1-person household: $54,950
• 2-person household: $62,800
• 3-person household: $70,650
• 4-person household: $78,500
• 5-person household: $84,800
• 6-person household: $91,100
• 7-person household: $97,350
• 8-person household: $103,650

These income limits are designed to ensure that the program benefits those who need it most, making homeownership more accessible for lower- and moderate-income individuals and families in Worcester.

By providing this valuable down payment and closing cost assistance, the City of Worcester’s Down Payment Assistance Program plays a crucial role in helping its residents embark on the path to homeownership, promoting stable communities, and fostering a sense of pride and investment in the city’s future.