Down Payment Assistance Information

MassDreams FAQs

Q: Can a borrower be reimbursed for the deposit they put down?

A. Yes. Reimbursement for overpayment of earnest money. If these funds are returned to the borrower, documentation must be present in the file to verify the original funds were given by the borrower.

Q: Will the grant be forgiven at closing and is there an occupancy timeline requirement?

A: Yes.

Q: What if there is a last-minute change to the final CD, after the final CD has been sent to MH and wire has been sent?

A: If the changes do not affect the Grant amount, such as closing costs, MI premium, interest and DPA amount you may keep the wire, please send final CD marked “CHANGE” email to MassDREAMS@masshousing.com. If there are any changes to the figures you MUST return the wire to MassHousing.

Q: How does the lender know if they received the wire?

A: Lender will be notified when they receive the final approval letter The Lender contact identified as the file starter or current contact, will be notified via an email from massdreams@masshousing.com along with a detailed wire report.

Q: Does a CD need to be delivered within 3 business days of closing?

A: The Final CD MUST be emailed to MassHousing at MassDREAMS@masshousing.com no later than 2 business days prior to closing (If you have the Final CD completed 3 days prior to closing, we would encourage you to send to MassHousing) . The Lender is still responsible for all requirements per TRID.

Q: Will MassHousing issue a gift letter to the lender prior to closing?

A: No, MassHousing will issue a final Grant approval letter to the borrower and the lender prior to closing.

Q: How do we reserve funds in the system?

A: The Lender will not be required to take an application or reserve funds for the MassDreams Grant Program.

Q: What happens with the leftover funds if the costs are less than the grant?

A: Any excess funds must be return to MH within 24 of the closing. Borrower is not to receive cash back at closing with exception of pre-paid earnest monies.

Q: Is there an additional agreement or addendum that the lender needs to sign to offer the grant?

A: MassHousing will need to receive your acknowledgment of participation. Your acknowledgement will be in the form of an email to MassDreams@masshousing.com along with your institution’s Wire Instructions on your company’s letterhead.

Q: If this a deed restricted property, once the grant funds have been attained and borrower sells the home, Is there a recapture?

A: There is no recapture on the MassDREAMS Grant.

Q: Is the grant eligibility based on where they live currently live or where they will live?

A: The grant criteria is based on at least one borrower currently residing in a Disproportionately Impacted Community. See Matrix for list of Communities.

Q: Is there a specific way we need to list the grant funds on the LE/CD? A: You must apply the Grant as follows:  -Down payment assistance for up to 5% of the purchase price or appraised value, whichever is less, of the home.  -Remaining funds, up to the maximum assistance level, may be used for the following expenses:  -Closing costs, Prepayment of MIF Mortgage Insurance Premiums, or the Upfront MIP for FHA Loans.  -Discount points with evidence of a commensurate reduction in interest rate.

For questions regarding Compliance, each Lender should contact their Compliance Officer.

Q: Is there a seasoning requirement for borrowers’ proof of residency?

A: There is no seasoning requirement for proof of residency, but borrower must be able to provide two documents from required Proof of Residency Document list dated within 30 days of application. (See Matrix for list of documents).

Q: If we are going to pair the ARPA grant with an FHA loan, we will need a gift letter in FHA format to document the file so we can insure the loan with HUD. Will this be provided?

A: As a government entity, we will provide the wire transfer and letter of approval of the grant amount. This will satisfy the FHA Requirement.

Q: Is the grant included in the CLTV? A: The Grant it is not included in the CLTV.

Q: Will the lender need to collect any documents for the grant?

A: The lender will not need to collect the borrower’s information; MassHousing will be working directly with the borrower on the MassDREAMS Grant to attest their information to MassHousing.

Q: Are current loans in the pipeline eligible for the MassDreams grant?

A: If the borrower meets the Grant requirements and completes the necessary steps for eligibility, the MassDreams Grant may be available for loans currently in the pipeline.

The Lender is responsible for ALL changes to the transaction including, the lock/float, AUS findings, UW and all applicable disclosures.

Q. How long does the homeowner have to reside in the property?

A. Borrowers must follow the requirements of the 1st Mortgage.

Q. What if the subject property changes?

A. If the subject property changes anytime during the process. The borrower must reapply for the MassDREAMS Grant.

Q. Who funds this down payment assistance at closing?

A. Funds will be wired to the lender 24 hours prior to closing for the Grant Amount only.

Q. A.

What fees are associated with this program?

There are no fees associated with this program.

Q. Is there a maximum number of points we can charge to get the rate down?

A. “The maximum amount of origination charges that can be paid by the borrower under all MassHousing mortgage programs are two points, which includes discount points and any application/processing/underwriting fees assessed by the lender” Q. Do all borrowers need to reside in a Disproportionately Impacted Community?

A. At least one borrower needs to reside in a Disproportionately Impacted Community.

Q. who is a first time homebuyer?

A. A borrower who has not owned a home in at least 3 years. All borrowers must be first time homebuyers to be eligible.

Q. Can the grant be used in place of the WFA DPA? A. The MassDREAMS Grant can be used with or without any of our other DPA Programs.

Q. Where does a borrower go to for a preapproval?

A. Borrowers should be directed to mymasshome.org to start the process.

Q. Are income limits based on current residence or subject property?

A. Income is based on the subject property.

Q. Can funds be wired directly to the settlement Agent instead of the lender?

A. Grant funds will be wired directly to the participating lender. We cannot wire funds to your third party.

Q. Can the grant be used to pay off debt?

A. No; The grant money cannot be used to pay off debt.

Q. Can the grant money be combined with other MassHousing programs?

A. Yes; The MassDREAMS Grant can be paired with all MassHousing 1st Mortgage and DPA Programs.

Q. How do we enter the MassDREAMS grant into the URLA? A: The MassDREAMS Grants are entered in Section 4d of the loan application and identified as not deposited as seen below. The amount of the grant should not be included as an asset in available funds.

MassHousing Form: G‐100MassDREAMS

COUNTY/COMMUNITY BARNSTABLE COUNTY Barnstable, Bourne, Brewster, Chatham, Dennis, Eastham, Falmouth, Harwich, Mashpee, Orleans, Provincetown, Sandwich, Truro, Wellfleet, Yarmouth

MassDREAMS GRANT PROGRAM INCOME LIMITS

Effective Date: September 12, 2022

100%

135%

COUNTY/COMMUNITY

100%

135%

$115,600

$156,060

HAMPSHIRE COUNTY Amherst, Belchertown, Chesterfield, Cummington, Easthampton, Goshen, Granby, Hadley, Hatfield, Huntington, Middlefield, Northampton, Pelham, Plainfield, South Hadley, Southampton, Ware, Westhampton, Williamsburg, Worthington MIDDLESEX COUNTY Acton, Arlington, Ashby, Ashland, Ayer, Bedford, Belmont, Billerica, Boxborough, Burlington, Cambridge, Carlisle, Chelmsford, Concord, Dracut, Dunstable, Everett, Framingham, Groton, Holliston, Hopkinton, Hudson, Lexington, Lincoln, Littleton, Lowell, Malden, Marlborough, Maynard, Medford, Melrose, Natick, Newton, North Reading, Pepperell, Reading, Sherborn, Shirley, Somerville, Stoneham, Stow, Sudbury, Tewksbury, Townsend, Tyngsborough, Wakefield, Waltham, Watertown, Wayland, Westford, Weston, Wilmington, Winchester, Woburn NANTUCKET COUNTY Nantucket

$91,300

$123,255

BERKSHIRE COUNTY Adams, Alford, Becket, Cheshire, Clarksburg, Dalton, Egremont, Florida, Great Barrington, Hancock, Hinsdale, Lanesborough, Lee, Lenox, Monterey, Mt. Washington, New Ashford, New Marlborough, North Adams, Otis, Peru, Pittsfield, Richmond, Sandisfield, Savoy, Sheffield, Stockbridge, Tyringham, Washington, West Stockbridge, Williamstown, Windsor

$87,300

$117,855

BRISTOL COUNTY Acushnet, Attleboro, Berkley, Dartmouth, Dighton, Easton, Fairhaven, Fall River, Freetown, Mansfield, New Bedford, North Attleborough, Norton, Raynham, Rehoboth, Seekonk, Somerset, Swansea, Taunton, Westport

$99,600

$134,460

DUKES COUNTY Chilmark, Edgartown, Aquinnah, Gosnold, Oak Bluffs, Tisbury, West Tisbury

$119,400

$161,190

ESSEX COUNTY Amesbury, Andover, Beverly, Boxford, Danvers, Essex, Georgetown, Gloucester, Groveland, Hamilton, Haverhill, Ipswich, Lawrence, Lynn, Lynnfield, Manchester, Marblehead, Merrimac, Methuen, Middleton, Nahant, Newbury, Newburyport, North Andover, Peabody, Rockport, Rowley, Salem, Salisbury, Saugus, Swampscott, Topsfield, Wenham, West Newbury

$133,300

FRANKLIN COUNTY Ashfield, Bernardston, Buckland, Charlemont, Colrain, Conway, Deerfield, Erving, Gill, Greenfield, Hawley, Heath, Leverett, Leyden, Monroe, Montague, New Salem, Northfield, Orange, Rowe, Shelburne, Shutesbury, Sunderland, Warwick, Wendell, Whately HAMPDEN COUNTY Agawam, Blandford, Brimfield, Chester, Chicopee, East Longmeadow, Granville, Hampden, Holland, Holyoke, Longmeadow, Ludlow, Monson, Montgomery, Palmer, Russell, Southwick, Springfield, Tolland, Wales, West Springfield, Westfield, Wilbraham

Disproportionately Impacted Communities $133,300

$179,955

$136,100

$183,735

NORFOLK COUNTY Avon, Bellingham, Braintree, Brookline, Canton, Cohassett, Dedham, Dover, Foxborough, Franklin, Holbrook, Medfield, Medway, Millis, Milton, Needham, Norfolk, Norwood, Plainville, Quincy, Randolph, Sharon, Stoughton, Walpole, Wellesley, Westwood, Weymouth, Wrentham

$133,300

$179,955

$179,955

PLYMOUTH COUNTY Abington, Bridgewater, Brockton, Carver, Duxbury, East Bridgewater, Halifax, Hanover, Hanson, Hingham, Hull, Kingston, Lakeville, Marion, Marshfield, Mattapoisett, Middleborough, Norwell, Pembroke, Plymouth, Plympton, Rochester, Rockland, Scituate, West Bridgewater, Wareham, Whitman

$133,300

$179,955

$91,300

$123,255

SUFFOLK COUNTY Boston, Chelsea, Revere, Winthrop

$133,300

$179,955

$91,300

$123,255

WORCESTER COUNTY Ashburnham, Athol, Auburn, Barre, Berlin, Blackstone, Bolton, Boylston, Brookfield, Charlton, Clinton, Douglas, Dudley, East Brookfield, Fitchburg, Gardner, Grafton, Hardwick, Harvard, Holden, Hopedale, Hubbardston, Lancaster, Leicester, Leominster, Lunenburg, Mendon, Milford, Millbury, Millville, New Braintree, North Brookfield, Northborough, Northbridge, Oakham, Oxford, Paxton, Petersham, Phillipston, Princeton, Royalston, Rutland, Shrewsbury, Southbridge, Southborough, Spencer, Sterling, Sturbridge, Sutton, Templeton, Upton, Uxbridge, Warren, Webster, West Boylston, West Brookfield, Westborough, Westminster, Winchendon, Worcester

$107,900

$145,665

Attleboro Barnstable Boston Brockton Chelsea Chicopee Everett Fall River Fitchburg Framingham

Haverhill Holyoke Lawrence Leominster Lowell Lynn Malden Methuen New Bedford Peabody

Pittsfield Quincy Randolph Revere Salem Springfield Taunton Westfield Worcester

Maximum Assistance Residents of Disproportionately Impacted Communities may receive: ‐up to $50,000 if their income is at or below 100% AMI ‐up to $35,000 if their income is between 100.01%‐135% AMI

Version 1

MassHousing MassDREAMS Grant Workflow HOMEBUYER Self-Identifies Income/FTHB/Proof of Residency* on

HOMEBUYER presents Eligibility Certificate to the LENDER.

www.mymasshome.org

LENDER registers 1st MassHousing loan with property address on emasshousing.com (and any

mymasshome generates the following: Eligibility Certificate directing HOMEBUYER to a LENDER** -ORIneligible email to HOMEBUYER with information on how to appeal.

additional MH DPA Program).

LENDER checks off MassDREAMS box on emasshousing.com.

MH completes initial review and emails HOMEBUYER with one of the following: Conditional Grant Approval Letter Incomplete -need more docs Ineligible Letter-provides reason(s).

HOMEBUYER registers on MassHousing Consumer Connects and uploads the following:

MH emails HOMEBUYER Attestation & Program Disclosure for signature & instructions to upload the following:

Signed Attestation & Program Disclosure Proof of Residency Docs Income Documents Eligibility Certificate Purchase and Sale Agreement LE

Income Documents Proof of Residency/LE P&S/Eligibility Certificate

LENDER sends HOMEBUYER 1st Mortgage LE.

1

MH receives and alert and emails HOMEBUYER to register on MassHousing Consumer Connect.

3

2

MH emails LENDER one of the following: Conditional Grant Approval Letter (Instructions to send MH 1st Mortgage Final CD no later than 48 hours prior to closing)

-ORA copy of the Ineligible Letter with reason of ineligibility.

5

4

LENDER uploads 1st Mortgage Final CD to the 1st Mortgage loan file on emasshousing.com no later than 48 hours prior to closing.

(Note: Lenders are encouraged to submit final 1st Mortgage CD 3 days prior to closing and no later than 48 hours).

MH conducts 2nd review and validation.

MH emails Final Grant Approval Letter with confirmed Grant amount to HOMEBUYER via MassHousing Consumer Connect.

8

7

6

MH emails Final Grant Approval Letter and Grant Agreement to the LENDER.

MH completes 3-tier signoff on the Wire Request.

MH instructs LENDER to add the Grant Agreement to the Closing Package.

Wire Request is submitted to Treasury by EOB, 2 business days prior to closing.

LENDER uploads the following to the 1st Mortgage loan file on emasshousing.com no later than 48 hours after closing.

LENDER returns Grant funds to MH no later than 24 hours.

LENDER receives wire 24 hours prior to loan closing.

Executed Grant Agreement Executed 1st Mortgage CD.

Process will need to start again from 1st Mortgage Final CD.

LENDER is notified funds are being wired (the wire amount will reflect the final Grant amount on the Final Approval Letter).

9

*At least one applicant must be a resident of a Disproportionately Impacted Community.

10

HOMEBUYER LENDER MH/MASSHOUSING

LOAN DOES NOT CLOSE

LOAN CLOSES

11

LENDER notifies MH at MassDREAMS@masshousing.com

12

MH receives executed Grant Agreement and signed CD for 3rd and final review and validation.

13

**MH Lender will need to contact their RM or send an email to MassDreams@masshosuing.com that they are ready to participate in the program and provide Wire Instructions to massdreams@masshousing.com. Please note, we do not allow multiple wire accounts and 9/2022 – Version 1 you must use the MassHousing Wire Instruction Template.