Finding the most affordable mortgage can be complicated. We're here to help.
250 Martins Landing Way
North Reading, MA 01864
Located at 250 Martins Landing Way, Martins Landing Condominiums is a new 502-unit 55+ condominium development located in North Reading, MA. Eight (8) units are available, by lottery, for eligible age-qualified (55+) homebuyers. The units will be distributed through four lotteries. This application is for the first lottery for two units.
One and two-bedroom affordable units are available. The one-bedroom unit includes 1 bathroom in +/- 948 sq. ft. The two-bedroom unit includes 2 bathrooms in +/- 1,116 sq. ft. Surface parking is available at no charge. Clubhouse available for all homeowners. The units are priced as follows:
One bedroom - $214,400 with a monthly condo fee of $170
Two Bedroom - $239,700 with a monthly condo fee of $204
All affordable units will be sold by lottery
What are the qualifications required for Prospective Buyers?
1. The maximum allowable gross income guidelines, adjusted for household size, as follows:
Max Allowable Income
(Note: This represents 80% of the annual household median income for the area and is subject to adjustments. This assumes a household size of 1-4 people. This income limit is subject to change based upon DHCD updating.)
2. At least one homebuyer must be 55 years of age or older.
3. Eligible households are allowed up to $275,000 combination equity from home sale and assets. You can not purchase an affordable home unless your current home is sold. If you do not have a home to sell the asset limit is the same at $275,000.
Retirement Accounts are determined as follows:
Refer to Required Financial Documentation Form at the end of the package for full list of required asset documentation.
Other program highlights for Lottery applicants:
Are there specific mortgage guidelines?
Yes, they are:
1. Be a fully amortizing fixed rate mortgage with a down payment of at least 3%, at least half of which must come from the buyer’s own funds.
2. Be made by an institutional lender.
3. Have a fixed interest rate through the full term of the mortgage that is a current fair market interest rate.
4. No more than 2 points.
5. Monthly housing (inclusive of principal, interest, property taxes, hazard insurance, private mortgage insurance and condominium or homeowner association fees) may not exceed 38% of the buyer’s monthly income for the mortgage.
6. Non-household members shall not be permitted as co-signers of the mortgage.
7. FHA, VA and Quicken loans will not close on deed restricted properties so pre-approvals using those programs will not be accepted.
Are there preferences for local residents and those with families?
All units are available through the Open Pool.
Household size preference for the two-bedroom units will be given to households that require two bedrooms, second preference is for households requiring one bedroom.
Unit preferences are based on the following:
a. There is at least one occupant per bedroom.
b. A husband and wife, or those in a similar living arrangement, shall be required to share a bedroom. Other household members may share but shall not be required to share a bedroom.
c. A person described in (2) shall not be required to share a bedroom if a consequence of sharing would be a severe adverse impact on his or her mental or physical health and reliable medical documentation is provided substantiating the adverse impact.
d. A household may count an unborn child as a household member. The household must submit proof of pregnancy with the application.
e. If the Applicant is in the process of a divorce or separation, the Applicant must provide proof that the divorce or separation has begun or has been finalized, as set forth in the application.
Persons with disabilities are entitled to request a reasonable accommodation of rules, policies, practices, or services or to request a reasonable modification of the housing, when such accommodations or modifications are necessary to afford the person(s) with disabilities equal opportunity to use and enjoy the housing. If you need a reasonable accommodation it must be requested at time of application with the backup documentation, i.e. letter from doctor.
Are there any restrictions?
YES. Deed restrictions are used to protect the affordability of the condominium units for future buyers. The deed restrictions encumber the property in perpetuity, with certain exceptions. If you choose to sell your unit, there is a limit on the resale price. The maximum resale price is determined using a Resale Price Multiplier, a figure calculated by taking the initial sales price and dividing it by the area median income. For example, the initial 2-bedroom affordable condominium unit price is $239,700 and the current area median income is $140,200, the Resale Price Multiplier would be $239,700/$140,200 = 1.70.
Upon resale, the Resale Price Multiplier is multiplied by the updated area median income number to determine the maximum resale price. A resale fee up to 2% of the resale price may be added onto the resale price to be paid by the buyer to the Monitoring Agent.
Applicants are strongly encouraged to review the restrictions in the deed rider with their attorney.
How much money do I need to make to afford the condominiums?
The minimum income required to purchase is based solely upon an applicant’s ability to secure a mortgage. Attached is a sample “Affordability Analysis” based upon current interest rates and anticipated real estate taxes and related housing expenses.
Due to the nature of the affordable home’s availability, it is important for everyone to understand the procedure. Please understand the allowable income guidelines are adjusted based upon your household size. Also be advised that the program and its requirements are subject to changes in state or federal regulations.
Two condominiums are available by lottery at Martins Landing through the Open Pool, available to all applicants. The unit’s breakdown as follows:
Bedroom Size # of Units
One Bedroom 1
Two Bedroom 1
All eligible applicants that receive a lottery code will be pulled at the time of the lottery. This will establish the rankings for the distribution of units. The highest ranked applicants meeting the Household Size Preference (see page 4) and bedroom size will have the initial opportunity to purchase. This means if you are a two-person household and meet the Household Size Preference for a one-bedroom unit and are drawn first in the lottery, you will be offered a one-bedroom unit. If you are a three-person household and meet the Household Size Preference for a two-bedroom unit and are drawn first, you will be offered a two-bedroom unit.
Please note: Household size shall not exceed, nor may the maximum allowable household size be more restrictive than, State Sanitary Code requirements for occupancy of a unit (See 105 CMR 400).
The first units are scheduled for closing September/October 2023. If you are selected and have the opportunity to purchase a unit you will speak or meet with a representative to review your application to verify all information. Applicants selected for units approaching completion will need to start working with an approved lender immediately to secure the necessary mortgage. You will have 2 weeks to sign the Purchase and Sale Agreement once received from the seller. Please be advised the official income verification will be done at the time you have an opportunity to purchase a unit. Meaning, if one year after the initial lottery you have the opportunity to purchase a unit and you are over income at that time, you may not be able to purchase.
Acceptance of Homes
It is important for all applicants to understand that specific units are attached to specific lottery rankings based upon the projected availability of the completed unit. Applicants will not have a choice of unit locations, style or schedules. You will not be able “pass” on a unit and wait for another unit. If you choose not to take the designated unit, you will go to the bottom of the list and will likely NOT have another opportunity.
Resale of Units
The resale of the affordable units will be coordinated by the Monitoring Agent. If you have an opportunity to purchase you will receive a copy of the LIP Homebuyer Disclosure Statement which outlines the limitation on profit, steps to resell the unit, time allowed to sell, and capital improvements etc. If you would like to receive a copy of this document send an email to firstname.lastname@example.org and a copy will be emailed to you.
We hope this helps explain the process by which the units will be distributed. It can be a lengthy and sometimes complicated process. We greatly appreciate your participation and wish you the best of luck in the lottery process.
Finding the most affordable mortgage can be complicated. We're here to help.