Frequently Asked Questions

What are the eligibility requirements to participate in the lottery?

Each applicant can not exceed the maximum allowable income limits, adjusted for household size. Refer to individual lottery for income limits as they may differ from project to project.
Must be a first time homebuyer (never owned or not owned a home as a principal residence for a period of three years.) *See 55+. There are exceptions to the 1st time homebuyer rule and they are:

a. displaced homemakers, where the displaced homemaker (an adult who has not worked full-time, full-year in the labor force for a number of years but has, during such years, worked primarily without remuneration to care for the home and family), while a homemaker, owned a home with his or her partner or resided in a home owned by the partner;

b. single parent, where the individual owned a home with his or her partner or resided in a home owned by the partner and is a single parent (is unmarried or legally separated from a spouse and either has 1 or more children of who the individual has custody or joint custody, or is pregnant);

c. households where at least one household member is 55 or over;

d. households that owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations; and

e. households that owned a property that was not in compliance with State, local or model building codes and that cannot be brought into compliance for less than the cost of construction a permanent structure.

4. Have $75,000 ( for projects that have not yet begun the marketing. Exisiting projects the limit is still $50,000)or less in household assets. Retirement accounts do apply. Click here for the Income and Asset Guidelines.

I am over 55 years old, are there different guidelines to purchase an affordable unit?

There are projects geared specifically for 55+ households. If you are purchasing or considering purchasing in an age-qualified development the following applies.......You still can not exceed the maximum allowable income limit for your household size. However, you do not need to be a first time homebuyer and you can currently own your own home. This home must be sold to purchase prior to closing on an affordable unit. There is a limit to the amount of equity you can realize from the sale of your home. The allowable equity is currently set at $150,000 or $200,000 depending how the project was permitted. You may also have up to $50,000 or $75,000 in household assets, exclusive of the equity in the sold home.

If you are 55 years of age or older and are considering purchasing in a non 55+ development you still have the exemption on being a first time homebuyer but are only allowed the $50,000 or $75,000 asset limit. The equity as stated above does not apply if you are buying in a non 55+ development.

What is the difference between Age Restricted or Age Qualified housing?

There is no difference. Both means at least one person in the household is 55 years of age or older.

Why do the asset limits of $50,000 or $75,000 differ?

The guidelines have been updated. If a project has not begun the marketing for the lottery the new $75,000 asset limit is used. If the lottery has already been conducted and units are being filled the asset limit is $50,000.

My income is over the maximum allowable income for my household size, does this mean I will never be able to participate in an affordable housing lottery?

Not necessarily. There are project that offer units to households up to 120% of median income. Also, the income limits are revised annually, usually in February or March, which may make you eligible.

I am expecting a baby, do I add the child to our household size?

Yes.

I pay or receive alimony and/or child support. Do I need to include it in my monthly income?

Yes, child support and alimony received by the applicant is counted as income. If you pay child support and/or alimony, it cannot be deducted from income regardless of household size.

I owned a home with my spouse within the last three years and we are now divorced, can I be considered a first time homebuyer?

Following are the exceptions to the first time homebuyer rule:

c. households where at least one household member is 55 or over;

d. households that owned a principal residence not permanently affixed to a permanent foundation in accordance with applicable regulations; and

Are there preferences for local residents?

Yes. Due to the community support provided to projects, up to 70% of the affordable homes can be reserved for local residents. Refer to the application for local preference guidelines.

Are there preferences for families?

Units are distributed based on lottery ranking but also household size. Unit preferences are based on the following:

a. There is a least one occupant and no more than two occupants 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 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.

I am single, does that mean I cannot participate in the lottery?

No, it means that two or more person households would receive preference over a single person household. However, if all two or more person households are offered the unit and are unable to purchase we would then move to the one person households and offer them the unit based on their lottery rank.

Also affordable resale units (previously owned affordable units) are sold on a first come first serve basis where household size does not matter.

Is there a household size preference for one bedroom units?

No. Usually the one bedroom units are open to single person households.

What does it mean if I “win” a home in the lottery?

It does not mean that you automatically “win” a home. It means you have the opportunity to purchase a home, at a reduced sales price, provided you meet all program eligibility requirements and can secure a mortgage. If you meet the eligibility requirements but are unable to secure a mortgage you would loose the opportunity to purchase the home/unit.

We did not "win" a unit in the lottery, what happens next?

If you were not an initial lottery winner, we have your lottery placement on the lottery ranking list. Should the initial winners be unable to purchase the unit for any reason we move to the next eligible applicant on the list until all units have been sold. Typically, there is some movement on the ranking list so if you ranked high you still may have an opportunity to buy.

Will we automatically be notified of future lotteries?

Yes, provided you are a registered member on this website. As new lotteries are posted an email will be sent to all registered members announcing a new lottery. You will then have to complete the appropriate lottery application and submit it to be entered in the new lottery.

What are Resale Units?

Resale units are previously owned affordable units and the owners are selling. These units are available on a first come first serve basis. This means the first household who provides all the required information will have the first opportunity to purchase, provided they meet all eligibility requirements. Resales are a great opportunity for single person households to purchase there first home. Click here for current units available on first come first serve through MCO Housing Services.

Is a mortgage pre-approval letter required to participate in a lottery?

Yes, lottery guidelines are requiring that all lottery participants have a mortgage pre-approval which must be provided prior to the lottery application deadline.

Are there any restrictions to the type of mortgages required to purchase the unit?

Yes. They are:

The loan must have a fixed interest rate through the full term of the mortgage.
The loan must have a current fair market interest rate. (No more than 2 percentage points above the current MassHousing Rate.)
The buyer must provide a down payment of at least 3%, 1.5% of which must come from the buyer’s own funds.
The loan can have no more than 2 points.
The buyer may not pay more than 38% of their monthly income for housing costs.
No third party mortgages are allowed.

Are there mortgage programs specifically available for first time homebuyers?

There are two programs that MCO Housing Services recommends for first time homebuyers. Both programs are available through approved lenders. Those programs are MassHousing or the Soft Second Loan Programs. Both programs will have the list of approved lenders on their websites. Both websites are very informative for homebuyers and are worth your time to review.

Are there any restrictions to the affordable units?

Yes. Deed restrictions are used to ensure the homes are affordable for future buyers and are attached to the property in perpetuity. If you choose to sell your home, there is a limit on the resale price. The maximum resale price is determined using a Resale Price Multiplier, which is used to allow the price to adjust at a level consistent with area income levels. This figure is calculated by taking the initial sales price and dividing it by the area median income. For example, an initial 2 bedroom home price is $121,000 and the current area median income is $62,200, the Resale Price Multiplier would be $121,000/$62,200 = 1.95.

Upon resale, the Resale Price Multiplier is multiplied by the updated area median income number to determine the maximum resale price. For example, if the original buyer decides to sell the home in 5 years and (we assume) the then current area median income has increased to $70,000 the resale price would be determine as follows: $70,000 x 1.95 = $136,500.

In addition, the Monitoring Agent receives a resale fee that can be added to the maximum resale price and would be paid by the buyer.

How does the unit stay affordable?

Every buyer of an affordable unit signs a Deed Rider at closing. This is a legally binding document that states the unit stays affordable in perpetuity, provides the resale price multiplier and outlines the steps taken should you decide to sell. It is strongly recommended all affordable homeowners become familiar with the contents of the Deed Rider.

Can I sell the unit in the future and what do I do?

Yes. You would contact the Monitoring Agent assigned to the project. They are listed in the Deed Rider. The Monitoring Agent would establish the resale price and would administer the process. The price would be established using the Resale Price Multiplier with a resale fee, set by the Monitoring Agent, added to the price.

Can I rent or lease out the unit?

No. All units must be owner occupied.

Am I able to apply for a current housing lottery if I was a previous winner and currently reside in the home?

No. Since you are a current homeowner you would no longer meet the program eligibility requirements.

Do I need to take a first time homebuyers course to participate in an affordable housing lottery?

First time homebuyers classes are very informative for those purchasing their first home. It is reccommend everyone take a class. Although a class in not required to participate in a lottery, some towns and mortgage programs require the course prior to closing on a unit.

Where can I obtain a list of approved First Time Homebuyer Courses?

You can obtain the list at www.chapa.org. Click here for the list.

Are there affordable rentals available?

Yes, although MCO Housing Services does not usually handle affordable rentals. The following websites may list affordable units: www.chapa.org, www.massaffordablehomes.org or www.affordablesearch.com.

Contact MCO Housing Services with further questions at (978) 456-8388 or maureen@mcohousingservices.com.