Redfin reported a median property price of $534,000 in December 2022 in historic Massachusetts, one of the Thirteen Colonies.
The great news? In Massachusetts, first-time homebuyers have access to low-interest loans and other programs that make homeownership more reasonable despite the state’s high housing costs. MassHousing and the non-profit Massachusetts Housing Partnership both provide possibilities for housing.
Massachusetts First-Time Homebuyer Loan Programs
MassHousing offers a fixed-rate mortgage with MI Plus, a sort of mortgage payment protection that covers the mortgage principle and interest in the event of job loss, which is well-suited for first-time homebuyers. MI Plus covers payments up to $2,000 per month for up to six months.
Borrower requirements:
- Must fulfill credit and other mortgage lender eligibility standards.
- Required to complete a homebuyer education program
- Must satisfy MassHousing income restrictions
- Must use an authorized lender
Property requirements:
- Single- to four-family homes or condominiums are required.
MassHousing Purchase And Renovation Loan
MassHousing offers a rehabilitation loan option for financing both the house purchase and renovation costs in a single mortgage if you are purchasing a home that requires repairs. Renovation expenses may be financed up to 75% of the home’s as completed appraised value.
Borrower requirements:
- Must fulfill credit and other mortgage lender eligibility standards.
- The 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 comply with MassHousing income restrictions
Property requirements:
- Must be a single- to four-family home
MassHousing Operation Welcome Home
The Operation Welcome Home program of MassHousing offers a fixed-rate mortgage to first-time military and veteran homebuyers.
The restriction for first-time buyers does not apply to service personnel and veterans purchasing in Boston and some other markets. In addition to the mortgage, the program provides up to $2,500 in closing cost assistance, which can be paired with MassHousing down payment help.
Borrowers must be members of the National Guard or Reserves, active-duty military, veterans, or family members of Gold Star recipients, as well as meeting income limits and other eligibility requirements.
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Down Payment Assistance
MassHousing gives first-time homebuyers down payment assistance (DPA) for up to $50,000 or 10 percent of the home’s purchase price, whichever is less.
The help comes in the form of a 15-year, fixed-rate loan with an interest rate of 2 percent. When the home is sold or when the loan is refinanced, the loan must be repaid.
Borrower requirements:
- Must meet MassHousing income restrictions unless purchasing in Boston or one of several other Gateway Cities (including Lowell, Springfield, and Worcester), where borrowers can earn up to 135% of the area median income (AMI) and still qualify.
Property requirements:
- Must be a single- to four-family home, or condominium
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