Here’s How to Get Started

Definitions

Following are general definitions to help you get started in understanding affordable housing qualifications. See individual applications for specific requirements.

Age Restriction

 

Generally, age-restricted developments require at least one household member to be a certain age often 55+ or 62+, and some developments also limit the minimum age.

Area Median Income (AMI)

 

An income level set by Department of Housing and Urban Development for a particular geographic location that determines income eligibility for affordable housing programs.  Andover is part of Lawrence, MA-NH HUD Metro Fair Market Rent (FMR) area.

Asset Limit

 

The total assets of all household members combined including checking accounts, savings account, non-qualified retirement accounts; excludes vehicles and personal property. Generally, for non-age restricted homeownership units, household assets shall not exceed $75,000 in value.

 

First Time Homebuyer

 

A person who has not owned a home in the last 3 years, with some exceptions for displaced homeowners, single parents and 55+ applicants.

 

Household

 

Two or more persons who live regularly in the unit as their principal residence and who are related by blood, marriage, law or who have otherwise been in a stable inter-dependent relationship, or an individual. In order to make the best use of limited affordable housing resources, household size should be appropriate for the number of bedrooms in the home.

 

Income Limit

 

The maximum allowable income of all household members combined including wages, child support, alimony, retirement distributions and all other income. Income guidelines vary by development.

Determining If You Qualify

Generally you must meet 4 criteria to qualify for affordable homeownership:

 

  1. Have Mortgage Ability. You are able to qualify for a mortgage. Homebuyer courses such as the ones offered by CHAPA and MVHP can help buyers learn about obtaining mortgages along with many additional critical home-buying skills.

  2. Be an Income Eligible Household. A household of one or more persons whose total household income does not exceed the maximum limit set for the development. The specific limit information should be in the guidelines for the application to purchase the home.

  3. Not exceed the Maximum Household Asset Limit. An eligible household must have less than the maximum asset limit set for the development. The specific asset limit information should be in the guidelines for the application to purchase the home.

  4. Qualify as a First-time Homebuyer. See the definition above as being a first-time homebuyer is broader than you may think.