Cash-to-Fix SALES
The Cash-to-Fix SALES program offers homebuyers the opportunity to purchase a City-acquired, 1- to 3-family foreclosed home at an affordable price for which they can also receive financial and technical rehab assistance from the Boston Home Center to cover needed renovations before they move in.
What are the benefits?
- Buy a home at a significantly reduced price that you do not have to ‘bid’ for – just qualify for a mortgage! (Applicants are ultimate selected in an affordable housing lottery
- Take advantage of limited time financial assistance: the City will cover the cost of up to $50,000 in necessary renovations in the form of a 0% deferred loan, and will cover the cost of that mortgage while renovations are underway for up to 3 months
- Receive technical assistance with contractor selection, monitoring work quality and post-renovation inspections
Who is eligible?
- Must be a graduate of Homebuying 101
- If purchasing a multi-family home, must be a graduate of Homeowner 201 within one year of ownership
- Must not own any other property at the time of purchase
- Buyer must agree to make this home your primary residence for as long as you own it
- Must be able to contribute at least 3% of their own funds toward the purchase price
- Must use one of the Boston Home Center’s approved mortgage lenders
- Must have a household income that does not exceed 120% of Area Median Income as determined by the U.S. Department of Housing and Urban Development (HUD) View HUD Income Eligibility Requirements
- Must adhere to the following Cash-to-Fix SALES renovation subsidy terms, which is provided in the form of a 0% deferred loan for up to ten or fifteen years based on funding amount:
Amount of loan |
Terms |
Loan is Forgivable… |
Loan amount is due in full if buyer sells, moves out, or refinances… |
Loan amount is forgiven starting in year six - prorated at… |
Over $40,000 |
15 years with no payments |
After 15 years |
Before year five |
10% |
Under $40,000 |
10 years with no payments |
After 10 years |
Before year five |
20% |
What properties are eligible?
- Cash-to-Fix SALES properties are offered periodically. All Cash-to-Fix SALES properties currently being offered for sale can be viewed on the Affordable Housing webpage
What types of repairs are eligible?
Some examples are:
- Repair or replace a heating system
- Patch a leaking roof
- Restore a foundation
- Repair or replace an inadequate electrical system
- Address insufficient means of egress or inadequate entryways
- Replace inoperable plumbing components in a kitchen or bathroom
- Address a stairway or a porch that does not meet building code
- Remove hazardous materials such as loose asbestos covering or insulationÂ
- Remove lead paintÂ
* Please note: funding in excess of $50,000 will be considered if necessary repairs are found to be directly related to health and safety. In addition, buyers with children under the age of six are eligible for
expanded lead paint removal on an as-needed basis.
How do I apply and What happens next?
- Graduate from an approved homebuyer education program
Interested potential buyers may take Homebuying 101 at any time prior to purchase, but this may be a good place to start the process. View the list of approved homebuyer education providers.
- Meet with a participating mortgage lender to learn what you can afford
If you meet their guidelines, the lender will give you a mortgage pre-approval letter that you will need to show the City.
- If a Cash-to-Fix SALES home is advertised and you are interested, attend an open house and submit an application
The City will issue a Request for Proposal (RFP) for all Cash-to-Fix SALES properties, which is another term for an application period. If you are interested in an advertised property, submit an application by the deadline given in that RFP.
- Wait to be invited to affordable housing lottery for that Cash-to-Fix SALES property
If you are deemed eligible to participate after review of your application, Boston Home Center staff will contact you within two weeks to invite you to participate in the affordable housing lottery for that property. (Ineligible applicants will also be notified in writing at this time.)
- Close on the Cash-to-Fix SALES property
Upon selection in the affordable housing lottery, work with your lender to obtain purchase or purchase/rehab financing approval in order to finalize the sale and close on the property with the City. At this time, you will also be able to execute the forgivable deferred loan agreement with the City of Boston. (Please note: this process may take up to 60 days.)
- Work with the Boston Home Center of identify a general contractor to renovate your new home
A Boston Home Center Construction Specialist will have surveyed the property and identified necessary repair items, which they will now review with you.
The Construction Specialist will then assist you in finding a general contractor through a process of inviting licensed, independent contractors to give a bid price on the specifications on your behalf. (Buyers are also welcome to invite a particular company known to them to bid independent to DND’s assistance.)
After a general contractor is selected, the Boston Home Center will assist with the preparation of the rehab contract between the buyer and the selected contractor, stating that he/she is responsible for completing the renovation as specified in the scope of work
The Boston Home Center will then host a pre-closing construction planning meeting to determine the permitting and construction schedule. Construction on the property will begin immediately after closing. The Construction Specialist will help you to monitor the renovation from the start of construction – until it is ready for you to move in.
- After an estimated 60-90 renovation period - move into your newly renovated home!
Have questions?
For more information about the Cash-to-Fix SALES program, call:
The Boston Home Center
Department of Neighborhood Development
Phone: 617.635.HOME (4663)
Email: HomeCenter.DND@cityofboston.gov
©2009 The City of Boston