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Project Reinvest: Homeownership - Down Payment Assistance
The Project Reinvest: Homeownership fund provides down payment assistance and/or closing cost assistance of $10,500 to income-eligible borrowers in western Massachusetts. Click here to download Project Reinvest income limits. Homebuyers must also complete homeownership counseling and education.
Project Reinvest Down Payment Assistance funds are available as a 0% mortgage that is due upon sale, refinance, or transfer of the home. There is a $250 fee for the loan, which is included in the loan. Loans will be available on a first-come, first-served basis until all funds are expended. Please note all complete applications require 22-30 days for processing.
Project Reinvest is available due to a partnership with Housing Development Fund Inc.
Established in 1989, the Housing Development Fund, Inc. (HDF) is a US Treasury Department-certified Community Development Financial Institution (CDFI), and HUD-certified counseling and lending agency.
How do I apply for Reinvest funds?
Do I need to attend any educational workshops or classes to qualify for Reinvest funds?
Yes. All homebuyers must have 8 hours pre-purchase education or an online equivalent, as evidenced by an acceptable completion certificate. Eligible agencies must be HUD approved AND must have adopted the National Industry Standards for Homeownership Education and Counseling.
Online courses must also adhere to National Industry Standards for Homeownership Education and Counseling. Any online course must include a minimum of one hour of one-on-one counseling.
Pre-purchase education must be completed before closing. Borrowers that have previously completed their pre-purchase education through an approved provider must have a completion certificate that is dated not more than 12 months prior to closing.
Note that Way Finders’ in-person and online workshops meet all criteria listed above; however, you may elect to complete your education through a different agency. Please click below for a list of upcoming Way Finders’ workshops.
Am I eligible for Reinvest funds?
You are eligible for Project Reinvest Down Payment Assistance funds if you meet the following criteria:
• You are a First-time homebuyer
• You are not a First-time homebuyer but have no ownership interest in another property at the time of closing
• You will own and live in the property as your primary residence
• Non-arm’s length transactions (e.g. family transactions) must meet agency (Fannie/Freddie, FHA, VA etc.) and/or the first mortgage lender’s guidelines
• Independent Tax Identification Number (ITIN) borrower transactions
• Please contact us for additional information if you are an executor or beneficiary of a Trust
You are not eligible if you meet any of the criteria below:
• You are an investor
• You are a non-occupant co-borrower, or non-occupant co-signor
• You intend to use these funds to purchase a second or vacation home
Please note, there are income restrictions associated with this program.
Are there income restrictions?
Yes. You may be eligible for Project Reinvest Down Payment Assistance funds if your income does not exceed 100% of Area Median Income (AMI) adjusted for household size. Please click below to review the Area Median Income (AMI) guidelines.
What can I use Reinvest funds for?
Project Reinvest Down Payment Assistance funds can be used in whatever way the primary mortgage loan program will allow, which may include closing costs. The borrower always receives $10,500, but in many cases they must still come up with their minimum investment and settlement costs.
Note: A $250 processing fee is included in the total loan amount.
What documents am I required to submit with my application?
Copies of the following documents must be submitted to Way Finders, via your online account, before we are able to review your file. Incomplete applications cannot be considered. Many of the documents below can be obtained from your first mortgage lender. Please contact us if you need any assistance.
Step 1: We first verify your household income eligibility. The following documents are required to proceed with your application:
• Completed Project Reinvest Down Payment Assistance Loan Application
• Signed copies of the three most recent tax returns and W-2
• One month most recent pay stubs (for all jobs and adult household members)
• Supporting documentation for other sources of income
• Year to Date (YTD) Profit and Loss, if self-employed
• One month most recent bank statements
Step 2: If it is determined that you are eligible, we will require the following documents to complete and submit your application:
• First Mortgage 1003 (Universal Loan Application)
• First Mortgage Loan Estimate
• Partially executed contract or signed Purchase and Sales Agreement
• First Mortgage Commitment: if pending, you may submit when finalized; however, both applications should be completed at the same time.
• Home Appraisal: if pending, you may submit when finalized
• Condo Project approval (if applicable)
• First Mortgage 1008 (Underwriter Transmittal Summary, if pending you may submit when finalized)
• Homebuyers Education Certificate from an approved provider
• Home-owners insurance: if pending, you may submit when finalized
• Landlord Education Certificate (if buying a multifamily property)
How do I know how much Reinvest funds I could qualify for?
All qualified clients will be eligible for a loan in the amount of $10,500 only. This is the standard loan amount for all participants in this program. You may not choose a different loan amount.
Do I need to be a First-time Homebuyer to qualify for Reinvest funds?
No. You do not need to be a First-time Homebuyer; however, you may not have ownership interest in another property at the time of closing.
Can I combine these funds with other down payment assistance programs?
Project Reinvest Down Payment Assistance funds can be used in conjunction with other down payment assistance programs (layering of DPAs), as long as the maximum Combined Loan to Value (CLTV) per the first mortgage lending program is not exceeded. Please ask your primary lender for additional information.
What type of property can I buy?
The property you purchase must be your primary residence. You can purchase a single family home; a home with 1-4 residential units, a townhouse, or a condominium. This program does not provide financing for mobile homes or co-ops.
What does it mean that Reinvest funds is a “mortgage"?
This is not a grant or forgivable loan product. The Project Reinvest Down Payment Assistance funds are provided to you in the form of a “second mortgage.” You will be required to repay this loan at the end of your first mortgage term, or when the home is sold or the title on the property is transferred, whichever comes first. You may also be required to repay the loan if you refinance your primary loan.
The exception to the loan being forgivable would be in the case that a borrower is in a negative equity position at the time of the sale.
Can I use any lender to get my first mortgage and still receive Reinvest funds?
The lender you choose for your first mortgage must be the same lender you choose for this program. The following lenders are currently participating in this program:
- Bank of America
- Berkshire Bank
- Citizens Bank
- Country Bank
- Freedom Credit Union
- People’s United
- Santander Bank
- United Bank
Please contact your lender to discuss eligible first mortgage products allowable under this program.