Fieldstone Farms at Duxbury

1. Income must be provided for all household members 18 years of age or older.

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 cannot 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:

1. Individual retirement, 401K and Keogh accounts are included when the holder has access to the funds, even though a penalty may be assessed.
   1. The value of Retirement and Pension Funds differ if you are employed or are no longer working.  If still employed the value is determined using the amount you can withdraw less any penalties or transaction costs.  At retirement, termination of employment or withdrawal periodic receipts from pension and retirement funds are counted as income.  Lump sum receipts are counted as assets.
   2. Assets divested at less than full market value within the past two years will be counted at full market value in determining eligibility.

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:

• Units must be owner occupied.  They cannot be rented or leased without permission from the Monitoring Agent
• Non-household members are not permitted to be co-signers on the mortgage.
• A mortgage pre-approval letter is required to participate in this lottery. 

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, Rocket Mortgage and Quicken loans will not close on deed restricted properties so pre-approvals using those programs will not be accepted.

Additional Mortgage Specifics:

1.  Your mortgage pre-approval must cover the purchase price.  If you are applying for more than one unit size, then the approval must cover the highest priced unit.
2. Your mortgage pre-approval must be a fixed rate mortgage.  Adjustable-rate mortgages will not be accepted, and you will not be included in the lottery.
3. At minimum, your pre-approval must show purchase price and financing amount.  If it does not you will not be included in the lottery.
4. If your mortgage pre-approval does not have an expiration date, then after 60 days from date of issue it will be considered expired.  If your pre-approval expires after your application submission, we will accept it, but should you have a chance to purchase it, it will need to be updated prior to final eligibility determination.  If it expires prior to your application submission you will not be included in the lottery.
5. If you plan on using a down payment assistance program then the program must be noted in the pre-approval, i.e. Mass Housing downpayment, etc.  If a specific downpayment assistance program is not stated in the pre-approval it will not be taken into consideration.
6. We will determine your downpayment amount based on your pre-approval.  For example, your purchase price is $250,000 and you are financing $225,000 we expect to see $25,000 in assets to cover the purchase price.  If some of a downpayment is coming through a gift that information should be provided with your application.  If we do not see the $25,000, whether it is your funds or gift monies, then you will not be included in the lottery. As a reminder, the minimum down-payment is 3% of your own funds. If you are receiving a downpayment gift or using a downpayment assistant program then 1.5% of your own funds is required as long as the total downpayment equals the minimum 3%. Your downpayment can be more than 3% but not less. Also remember you are responsible for downpayment and closing costs.
7. A gift letter must be for a specific amount.  If the letter is provided with a range, we will count the highest amount. If this puts you over the asset limit you will be determined ineligible to participate in the lottery.
8. If your pre-approval is from any of the stated loans we will not accept (FHA, VA, Rocket Mortgage, Quicken loans) and your application will not be included in the lottery. No exceptions.
9. Online mortgage pre-approvals will not be accepted.  You must speak/meet with a mortgage lender who should be checking credit and pay history to determine your ability to secure a mortgage.
10. We will accept no pre-approvals where any information has been crossed out, whited out and submitted with the application.
11. Non-household members cannot be co-signers on your mortgage.

Are there preferences for local residents? 

No, there is one unit in this lottery and the unit will be distributed through the Open Pool.

Are there preferences for household size?

Preference for the two-bedroom units will be given to households which require a two-bedroom unit. Second preference will be given to households who require 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 (b) shall not be required to share a bedroom if the 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.

Are there any restrictions?

YES. Deed restrictions are used to protect the affordability of the town homes 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 unit price is $295,800 and the current area median income is $160,900, the Resale Price Multiplier would be $295,800 /$160,900 = 1.83. 

Upon resale, the Resale Price Multiplier is multiplied by the updated area median income number to determine the maximum resale price. 

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 an “Affordability Analysis” based upon current interest rates and anticipated real estate taxes and related housing expenses. 

Lottery Process

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 local, state or federal regulations. 

Lottery Pools

There is one two-bedroom unit available and will be distributed through the Open Pool.

Eligible applicants will receive a lottery code prior to the lottery.  The lottery code is what be announced during the lottery to protect your privacy.

All eligible applicants will be pulled, and their lottery code announced at the time of the lottery.  This order of selection will establish the rankings for the home’s distribution.  The highest ranked applicant that meets the household size preference criteria (see page 4) would have the first opportunity to purchase the home. 

NOTE:  Homes will not be offered to smaller households until the two-bedroom households have been offered a unit.  This means if we exhaust the two-bedroom households we will then move to one-bedroom households to fill the unit.  Occupancy will not be more restrictive than the State Sanitary Code.

Time Frames

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.  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 may 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 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 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 maureen@mcohousingservices.com and a copy will be emailed to you.

Summary

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.