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MassHousing Mortgage
Well-suited to first-time homebuyers, MassHousing offers a fixed-rate mortgage featuring MI Plus, a type of mortgage payment protection that covers the mortgage principal and interest in the event of a job loss. MI Plus covers payments for as long as six months, and up to $2,000 per month. Borrower requirements: Must meet credit and other eligibility requirements as determined by mortgage lender Must complete homebuyer education course Must meet MassHousing Must work with an Property requirements: Must be a single- to four-family home, or condominium MassHousing Purchase and Renovation Loan
If you’re buying a home in need of repairs, MassHousing offers a rehabilitation loan option for financing both the purchase of the home and renovation costs in a single mortgage. The borrower can finance up to 75 percent of the home’s “as completed” appraised value for the renovation expense. Borrower requirements: Must meet credit and other eligibility requirements as determined by mortgage lender Amount borrowed for renovations must be at least $10,000, and includes the cost of the renovation itself, inspection and title fees and a contingency reserve (10 percent of total reno cost) Must meet MassHousing Property requirements: Must be a single- to four-family home MassHousing Operation Welcome Home
MassHousing’s Operation Welcome Home program offers a fixed-rate mortgage to first-time homebuyer military members and veterans. (The first-time buyer requirement doesn’t apply to military members and veterans buying in Boston and other select markets.) Along with the mortgage, the program offers closing cost assistance up to $2,500, which can be combined with MassHousing down payment assistance. In order to qualify, borrowers must be a member of the National Guard or Reserves, active-duty military, veteran or Gold Star family member, and also meet and other eligibility requirements. Massachusetts Housing Partnership ONE Mortgage
The Massachusetts Housing Partnership (MHP) offers a 30-year fixed-rate loan, the ONE Mortgage, for low- and moderate-income first-time homebuyers. There is no private mortgage insurance requirement for this loan, and extra assistance is available to help lower the borrower’s monthly payments. Borrower requirements: 3 percent down payment for a single- or two-family home or condominium; 5 percent down payment for a three-family home 640 minimum credit score for single-family home or condo; 660 minimum credit score for two- or three-family home Maximum 38 percent debt-to-income ratio (exceptions up to 43 percent in some cases) Assets can’t exceed $75,000, excluding college or retirement savings Must complete homebuyer education courses Must meet MHP Property requirements: Must be primary residence Must be a single- to three-family home, or condominium Massachusetts down payment assistance
MassHousing Down Payment Assistance program
MassHousing provides first-time homebuyers with down payment assistance (DPA) for up to $15,000 or 5 percent of the home’s purchase price, whichever is less. The assistance comes in the form of a 15-year, fixed-rate loan with an interest rate of 2 percent. The loan must be repaid when the home is sold or the loan is refinanced. Borrower requirements: Must meet MassHousing unless buying in Boston or one of several other “Gateway Cities” (including Lowell, Springfield and Worcester), where borrowers can earn up to 135 percent of the area median income (AMI) and still be eligible Property requirements: Must be a single- to four-family home, or condominium MassHousing Workforce Advantage 2 0
MassHousing’s Workforce Advantage 2.0 program offers up to $25,000 in down payment assistance to first-time homebuyers. Through the program, buyers receive a fixed-rate MassHousing Mortgage (with MI Plus protection) and a down payment assistance loan with zero-percent interest. The payments on the DPA loan are deferred until you sell or transfer ownership of the home, or pay off or refinance the first mortgage. Borrower requirements: Can earn up to 80 percent of area median income (AMI) Property requirements: Must be a single- or two-family home, or condominium Other first-time homebuyer loan programs
In addition to MassHousing and Massachusetts Housing Partnership programs and assistance, first-time homebuyers can also take advantage of FHA, VA and USDA loans, which offer terms and rates that can make it easier to purchase a home. Bankrate’s guide can give you a rundown of these and other options. Get started
MassHousing works with over 150 mortgage lenders in the state. MHP also maintains a list of offering the ONE Mortgage. Keep in mind that lender requirements and interest rates in Massachusetts vary, so it’s important to compare options and fees before you commit to a loan offer. First-time homebuyer programs in nearby states
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SHARE: Autumn Cafiero Giusti is an award-winning journalist with over two decades of professional experience. She writes about mortgages, real estate and banking. Suzanne De Vita is the mortgage editor for Bankrate, focusing on mortgage and real estate topics for homebuyers, homeowners, investors and renters. Related Articles