Down Payment Assistance

The Borrower’s Assistance Program (BAP) is funded by the City of Holyoke through HOME funds and administered by the HHA. This program intends to assist first-time homebuyers who are purchasing a single-family home in Holyoke with downpayment/closing costs up to $14,999.


To date, the HHA has assisted over 150 first-time homebuyers since the program’s inception.

Eligibility

To be eligible for funding under the Borrower’s Assistance program (BAP), the household must:


  • Be determined to be income eligible, household income at time of acceptance into the program, with recertification at time of closing, cannot exceed 80% of the area median as defined by the U.S. Department of Housing and Urban Development (HUD),

  • Must certify that they meet a “needs” test and are unable to purchase the home without BAP assistance, o Be a first-time homebuyer (not having owned a home within the past three years)

  • Be purchasing a single-family home in Holyoke,

  • Certify that the home purchased will be the households principal place of residence, o Have completed an approved comprehensive first-time homebuyer educational training course,

  • Have a signed Purchase and Sale Agreement for a home in Holyoke within the maximum sales price. The sale price of the home purchased cannot exceed 95% of the median purchase price for the type of single-family housing for Hampden County. ($606,000) *.

  • Understand that all homes purchased with BAP funds must meet Housing Quality Standards (HQS). The HQS inspection will be performed by the Holyoke Housing Authority.

  • Participants must pay no more than 35% of their gross monthly income towards housing expenditures (front-end ratio) based on a 30-year amortization schedule; provided, however, that the ratio of monthly housing expenditures plus all other household monthly debt payments (back-end ratio), does not exceed 43% of gross income.

  • Provide documentation that the home being purchased meets HUD regulations as stated in 24 CFR Part 35 as well as the “Residential Lead-Based Paint Reduction Act of 1992” (Title X, Housing and Community Act of 1992) P.L. 102-550) and that the home meets HUD requirements effective August 9, 2001,

  • Pay to the Holyoke Housing Authority, as part of the BAP loan amount, a fee of $250 to cover administrative costs related to the program.

  • Must invest at least 1.5% of the purchase price in borrowers’ own funds.

HHA Housing