With expansion of the city’s first-time homebuyer program, current New Bedford residents looking to buy property in the city may be able to live the dream of home ownership.

New Bedford continues to make use of its American Rescue Plan Act funding by expanding its homebuyer program with another $500,000 at a time when there are more than 700 new units of housing in development across New Bedford at all income levels.

ARPA funding is also available to assist eligible homebuyers with repairs and contribute additional funding to the city’s existing home repair programs.

Funding for a homeowners’ dream

Standing outside 85 Newton St. in the West End, Mayor Jon Mitchell said the homebuyer’s program has been successful, but the increase in funding from $10,000 up to $25,000 in down payment and closing cost assistance is a significant increase that would equal about 20 awards from the city alone.

He said the homeowner was able to secure funding through the city’s program to have a little piece of equity and live the American dream, and this expands on that program.

“What we’re trying to do is get people housed to enable their kids to go to school, and for the family to build wealth and pursue the American dream,” he said.

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City employees who work for the police, fire and school departments are eligible for an additional $10,000 for up to $35,000 in assistance. Mitchell said the higher limit for these city employees is one more benefit for their hard work at a time when there is a strain on resources.

Amaral speaks to home ownership

Office of Housing and Community Development Director Josh Amaral said with expansion of the program and lenders who are looking to work with homebuyers who are not always traditional fits for lending, it can make a residents’ dream become a reality.

“There are too many people out there who have dreamed of home ownership and are now finding themselves locked out of the market with starter homes at $3,000 or $4,000 a month, and the gap is wider than ever,” he said. “The purpose of this program is to close that gap.”

He said when eligible homebuyers move into their new homes in the city, their apartments will be available to future renters.

ARPA funding is also available to assist eligible homebuyers with repairs and provide additional funding for the city’s existing home repair programs.

Speaking to complementary funding

Massachusetts Housing Finance Agency Senior Relationship Manager Goretti Joaquim said Mass Housing has $30,000 in down payment assistance available as well as $25,000 in down payment assistance that can be used in conjunction with the new funding from the city.

“This borrower right here was able to access not only the city’s funds but Mass Housing’s funds, and when you can combine these programs and funds together is when borrower is able to purchase their first home,” she said.

She said of the 300 loans she has completed in New Bedford, about 50 percent were to the city’s underserved community.

She said residents will benefit from this opportunity once all the pieces of the puzzle are together in terms of the available funding.

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Focusing on the requirements

Eligible first-time homebuyers must have a household income at or below under 120% of the area median, or $92,000 for a single person, and must commit to living in the property as their primary residence for five years. It does not have to be paid back.

The existing program requires a household income under 80 percent, but eligible owners can benefit from both programs. Amaral said there is also additional gap financing.

Properties purchased through the program must pass a visual inspection to determine whether the property is lead safe and compliant with building and safety codes.

Buyers must take a first-time homebuyer workshop approved by the Citizens’ Housing and Planning Association. If purchasing a multifamily home, the buyer must also take a landlord education class, and offers can only be made if the property is vacant.

The city is also launching a new hybrid education series to inform first-time homebuyers of the process. The series is a mix of online and in-person sessions and will be approved by the CHPA.

Amaral said a crucial element of the program will be providing translation services in Portuguese, Spanish, Cape Verde, Creole and other languages.

To learn more about the program, contact the City’s Office of Housing and Community Development on its website or by calling the office at 508-979-1500.

Standard-Times staff writer Kathryn Gallerani can be reached at kgallerani@gannett.com. Follow her on X: @kgallreporter.

This article originally appeared on Standard-Times: City seeks to expand home ownership for buyers at all income levels