The housing marketing is booming but with a lack of houses for sale, overcrowded open houses, and bidding wars, the chance for an individual to purchase a home in Boston is very slim and that’s before we take down payments into consideration.
With the ability for buyers being able to purchase a house in the area continuing to be very difficult, MassHousing is well aware of the issue and is putting a new program into place to help tackle this problem. This program would cover up to 3% of a down payment for some first-time homebuyers. Under this program, those income-eligible people purchasing their first home with a MassHousing mortgage will be able to finance up to 100% of the cost. Through a low-cost secondary mortgage, they will have to pay it back, but it will eliminate the requirement of having the cash up front.
In order to qualify for the MassHousing Mortgage Program, homeowners must not only meet minimum credit standards but also have an annual household income at or below the area’s median income. If accepted, the down payment will be covered by a 15-year mortgage with a fixed interest rate of 1% and the loan amount is capped at 3% and can’t exceed $400,000 for a single-family or condominium unit.
- A baseline credit score
- Debt-to-income qualifications
- Mandatory attendance at a homeownership education class
Who’s Eligible for the MassHousing Mortgage Program?
I addition to meeting the MassHousing Mortgage Program requirements, first-time home buyers must meet the annual household incomes at or below the area median.
Eastern Massachusetts: $103,400
Worcester County: $85,700
Berkshire County: $67,200
What Programs are Available if I’m Not Eligible for MassHousing?
Working with an expert Realtor who will guide you along this process and help you determine a budget will also be able to make a recommendation for a lender who will be able to provide mortgage options. To learn other mortgage options that are widely available to buyers click here.