The First Time Homeowner Downpayment Assistance Program provides up to $6,000 for downpayment and/or closing costs for eligible first time homebuyers purchasing a property located in one of two targeted low and moderate income inner-city Haverhill neighborhoods (the Mt.Washington and Lower Acre neighborhoods) as established by HUD based on US Census data.
The Assistance takes the form of a 0% interest loan with a five-year term secured by a note and a mortgage. The loan is payable on the sale or transfer of the property.
The amount owed under the mortgage is a declining balance: every year that you live in the property as your primary residence, 20% of the original balance is forgiven. After five years, you will owe nothing.