l^M M*S5. <LD)X*Zi \] UMASS/AMHERST ft \ Service ofthe Department of levenue the BlEDbbDlbHblSD? < Department of Environmental Protection, and the Massachusetts Housing Finance Agency VERN^ENT DOCUMENTS COLLECT] JAN 6 1999 University of Massachusetts Depository Copy Homeowner Septic Repair Loan Program This information is available in alternate format upon request ADA by contacting DEP's Coordinator at 6 17-574-6872 lifili '/, ^m WMmB. -/.;:: Wm life w, w • • - Pnntedonrecycledpaper. Homeowner Septic Repair Loan Program Financial help is available for all homeowners faced with the need to repair a failed septic system to meet the Commonwealth's Title 5 requirements. Through a combined effort of the Department of Environmental Protection, the Massachusetts Department of Revenue, and the Massachusetts Housing Finance Agency (MHFA), below-market-rate loans are now available. Homeowner Septic Repair Loans are available to eligible homeowners at low interest rates of 0%, 3%, and 5%, depending on income, for loans ranging in size from a minimum of $ ,000 to a 1 maximum of$25,000. Participating Lenders All lenders who have been approved by MHFA to participate in the Homeowner Septic Repair Loan Program. See enclosed list for lenders in your area. Contact Call the MHFA at (6 7) 854- 020 or 1 1 (617)854-1333. Program Requirements Eligibility Borrowers All owner-occupants of -4 family 1 homes and residential condomini- ums with failed sewage disposal systems whose income does not exceed Program Income Limits. Borrowers must meet lenders' internal credit guidelines. Property Single-family homes, 2-4 family Type homes, residential condominiums, and condominium associations. Activities All costs associated with sewage disposal system repairs or sewer connections. Loan Terms Amount Minimum: $1,000 Maximum: $25,000 Terms Amortizing; 3-20 years, based on size of loan. Paid in full upon sale, refinance, or transfer. Interest Rate Loans are fully amortizing at interest rates of 0%, 3%, or 5%, depending on household income. Maximum Loans are credit based, not equity Loan-to- based; maximum loan-to-value Value ratios are not applicable. "0" Points points. Loan Terms (cont) Security All loans are secured by a subordi- nate mortgage; nonassumable. Insurance Hazard Insurance on each prop- erty; Flood Insurance if applicable. Debt-to- The maximum debt-to-income 50% income ratio is of borrower's gross income. No Appraisal appraisal ofthe property is required. Loan Application Process Where to Borrowers apply for financing Apply through MHFA-approved lenders. FHLMC#703/FNMA#I0I2 Required Forms plus other program-specific forms which will be provided by the participating lender. Additional Plans/specifications approved by Documen- local Board of Health as evi- tation denced by a Disposal System Construction Permit; Sewage Disposal System Inspection form; contract with firm price and Contractor's Mass. Registra- tion number; Certificate of Compliance by local Board of Health upon completion. :: Homeowner Septic A Step-E J Homeowner D: System Failure a- face Disposal Sy; Homeowner O Contract and G: Homeowner Su Application and I! Approved Plans Lender Determi Eligibility Septic Loan Und Loan(s) Closed; f Loans Sent to Mf- MHFA Pays $500 Septic System Re| Certificate of Cor by Local Board of: Certificate of Con MHFA by Lender Loan Program Repair Guide '-Step covers Septic Obtains Subsur- id fem Inspection Loan units oard of Health- o Lender Escrow tinds in FA for Purchase ^ Fee to Lender Completed; Dairs npliance Issued Health ipliance Sent to Income Limits for 0% Loan * MarketArea FamilySize -2 Persons 3orMore 1 A. BostonArea $25,000 $28,500 B. Lawrence Area $23,500 $27,000 C. Lowell Area $25,000 $28,500 D. NewBedfordArea $23,000 $26,000 E. Springfield Area $23,000 $26,000 F. Balance ofState $23,000 $26,000 MarketArea Income Limits for 3% Loan * MarketArea FamilySize -2 Persons 3orMore 1 A BostonArea $50,000 $57,000 B. Lawrence Area $47,000 $54,000 C. Lowell Area $50,000 $57,000 D New BedfordArea $46,000 $52,000 E. Spnngfield Area $46,000 $52,000 F. Balance ofState $46,000 $52,000 MarketArea Income Limits for 5% Loan * MarketArea FamilySize -2 Persons 3orMore 1 A BostonArea $100,000 $1 14,000 B. Lawrence Area $94,000 $108,000 C. Lowell Area $100,000 $1 14,000 D. NewBedfordArea $92,000 $104,000 E. Springfield Area $92,000 $104,000 F. Balance ofState $92,000 $104,000 MarketArea *Rndthe lettercode foryourcommunityat right to determine market area. List of Communities Abington F Brockton F East Bridgewater Acton A Brewster F EastBrookfield ACUSHNET D Brookfield F East Longmeadow Adams F Brookline A Eastham Agawam E Buckland F Easthampton Alford F Burlington A Easton Amesbury A Edgartown Amherst E Egremont Andover B Cambridge A Erving Arlington A Canton A -Essex A ASHBURNHAM F Carlisle A Everett A ASHBY F Carver A Ashfield F Charlmont F Ashland A Charlton F Fairhaven D Athol F Chatham F FallRiver F Attleboro F Chelmsford C Falmouth F Auburn F Chelsea A Fitchburg F Avon F Cheshire F Florida F Ayer A Chester F Foxborough A Chesterfield F Framingham A Chicopee E Franklin A Barnstable F Chilmark F Freetown D Barre F Clarksburg F Becket F Clinton F Bedford A Cohasset A Gardner F Belchertown E COLRAIN F Gay Head F Bellingham A Concord A Georgetown B Belmont A Conway F Gill F Berkley A Cummington F Gloucester A Berlin A Goshen F Bernardston F Gosnold F Beverly A Dalton F Grafton F BlLLERICA C Danvers A Granby E Blackstonf A Dartmouth D Granville F BlANDFORD F Dedham A Great Barrington F Bolton A Deerfield F Greenfield F Boston A Dennis F Groton C Bourne F Dighton A Groveland B Boxborough A Douglas F Boxford B Dover A BOYLSTON F Dracut C Braintree A Dudley F Bridgewater F Dunstable C Brimfield F Duxbury A 7 Hadley Ukeville F Milton A Halifax Lancaster A Monroe F Hamilton A Lanesborough F Monson E Hampden Lawrence B Montague F Hancock Lee F Monterey F Hanover A Leicester F Montgomery E Hanson Lenox F Mt. Washington F Hardwick Leominster F Harvard A Leverett F Harwich Lexington A Nahant A Hatfield Leyden F Nantucket F Haverhill B Lincoln A Natick A Hawley Littleton A Needham A Heath LONGMEADOW E NewAshford F Hingham A Lowell C New Bedford D Hinsdale Ludlow E New Braintree F HOLBROOK A LUNENBERG F NewMarlborough F Holden Lynn A NewSalem F Holland Lynnfield A Newbury A Holliston A Newburyport A HOLYOKE Newton A Hopedale A Malden A Norfolk A HOPKINTON A Manchester A NorthAdams F Hubbardston Mansfield A NorthAndover B Hudson A Marblehead A NorthAttleborough F Hull A Marion D North Brookfield F Huntington Marlborough A North Reading A Marshfield A Northampton E Mashpee F Northborough F Ipswich A Mattapoisett D NORTHBRIDGE F Maynard A Northfield F Medfield A Norton A Kingston A Medford A Norwell A Medway A Norwood A Melrose A Mendon A Merrimac B Oak Bluffs F Methuen B Oakham F MlDDLEBOROUGH F Orange F MlDDLEFIELD F Orleans F MlDDLETON A Otis F MlLFORD A Oxford F MlLLBURY F MlLLIS A MlLLVILLE A 8