When Carrie Husted and Derrick Andrade decided to become home owners last year, they thought the government’s $8,000 tax credit for first-time home buyers combined with today’s low interest rates made it an auspicious time to purchase a first home.

But once they began visiting homes in their Western Massachusetts community it soon became apparent that it wouldn’t be easy to find the kind of affordable home they were looking for. “We looked around but we didn’t find anything in our price range that we liked,” says Ms. Husted.

Their fortunes changed, however, when they took a first-time home-buyer’s course at Rural Development Incorporated (RDI), a nonprofit developer of affordable housing in Turners Falls, Massachusetts. At RDI, Ms. Husted and her husband learned about the Wisdom Way Solar Village, a 20-unit, solar-powered condominium complex developed by the nonprofit in nearby Greenfield.

“We decided to take a look at Solar Village and immediately knew we wanted to try to buy a home there,” says Ms. Husted.

The parents of a four-year-old daughter, Husted and Andrade say they were attracted to the affordable price — $140,000 for a three-bedroom condominium — and the energy-efficient features of the Solar Village homes. “The house was a lot better than anything else we could afford in the same price range,” says Ms. Husted. “We could also save money through lower utility expenses and by paying a mortgage rather than rent.”

“Both the construction and the people are eco-conscious,” adds Ms. Husted. “This is something that really speaks to us. We love being able to tell people that we have an earth-friendly home that is efficient, affordable, and LEED platinum certified. By living here we have a very low carbon footprint, which is important to us.”

Also a factor in purchasing a Solar Village home was the environment it would provide their daughter. “One of best things about living here is the community,” says Ms. Husted. “Everyone is so close, so friendly. We have already met everyone. The kids play with each other. We all got together and erected a playground for the kids, which was really great for them and a nice way to get to know our neighbors.”

A key ingredient of the home’s affordability was a $10,000 grant the couple received from the Federal Home Loan Bank of Boston’s Equity Builder Program (EBP) through member Florence Savings Bank. The EBP annually provides down-payment and closing-cost assistance to eligible home buyers through member institutions. Of the five home buyers that received EBP support in 2009 through Florence Savings Bank, three have purchased homes in Solar Village. A fourth Solar Village home buyer received an EBP grant through member Greenfield Co-Operative Bank.

Jeffrey M. Smith, vice president at Florence Savings Bank, says the EBP has become a valuable tool to help the bank lower the cost of homes for income-eligible borrowers. “It just makes the homes more affordable and comfortable for our buyers,” says Mr. Smith. “It’s a great program and we look forward to getting funding through it every year.”

Misty Lyons, assistant vice president at Florence Savings Bank, says each of the EBP home buyers received $10,000 grants to help cover down-payment and closing costs. She says the EBP allowed Husted and Andrade to put more money down and thus lower their mortgage payments.

“Receiving this EBP grant made it a lot easier once we moved in,” adds Mr. Andrade, who is employed by a wholesale distributor not far from Solar Village. “It gave us more security because we had enough money to buy a couple of things we needed after we moved in. We didn’t have to put all of our money into closing costs. It really helped us a lot.”

To make homes more affordable for first-time home buyers, Florence Savings Bank often combines the EBP with the Massachusetts Housing Partnership’s (MHP) SoftSecond mortgage program. To qualify for the program, first-time home borrowers’ income cannot exceed 100 percent of area median income (AMI). Borrowers with incomes below 80 percent of AMI may also be eligible for an MHP subsidy.

The SoftSecond program includes two mortgages: a 30-year, fixed-rate first mortgage at about 77 percent of the purchase price, and a second mortgage (interest only for the first 10 years) to cover the remaining 20 percent of the purchase price. The program requires a minimum down payment of three percent, half of which must be drawn from the buyer’s own resources.

Borrowers who qualify for a SoftSecond loan are not required to pay private mortgage insurance, which reduces the monthly mortgage payments of borrowers by $125 to $250. Solar Village consists of 10 duplexes or 20 homes. Eleven of the homes will be sold to low-income buyers with incomes below 80 percent of AMI; five will be sold to moderate income buyers with incomes of up to 110 percent of AMI; and two will be available at market rate. RDI plans to rent out the remaining two accessible homes to residents with physical disabilities.

Anne Perkins, director of homeownership programs at RDI, says the Solar Village condominiums were designed to be near zero net energy homes, which means that each will produce almost as much energy as it uses. To accomplish this, the developers have installed photovoltaic panels on the roofs of the duplexes to heat hot water and generate most of the electricity used in the homes.

Additional green-building features such as energy-efficient windows, cellulose insulation, double-stud walls, and Energy Star appliances also play a critical role in reducing energy consumption in the homes. Each condominium is heated by a single gas heater on the first floor and a small electric heater in the bathroom.

Ms. Perkins says seven homes are currently occupied and an eighth was recently sold. She says construction of the development should be completed by next spring.

Take a video tour of Solar Village