Buying a home for the first time can be a very daunting process. In fact more people keep thinking about buying but shy away at the last moment. In most cases money is the only obstacle which stands in way of realising your cherished dream of owning a house. This dream can now become a reality with the Massachusetts down payment assistance programs.
Massachusetts is a state which is well known for its assistance programs with regards to down payment and closing costs involved when buying a house. With funding being sourced primarily from the federal government, the goal of these programs is to help lower income households buy their own homes. These loans are generally given by the housing departments or certain specified non-profit agencies involved in housing.
Most of these Massachusetts down payment assistance programs are governed by certain rules which must be met for getting any assistance from these programs. Some of these criteria are:
- You must be buying your home for the first time.
- The home that you buy must be your principal place of residence.
- The cost price of the home you want to buy should be within the limits specified in these programs.
- The family income should be within the limits set by these programs.
There might also be asset limits attached to these programs which also have to be met to qualify for these programs. In fact these programs have been made to primarily help those families who are in a position to pay their monthly mortgage but are unable to pay for the other initial costs involved in buying a house.
Income limits for these programs is generally calculated based on the median income of the family as set by the departments involved in the development of homes. It is usually set at 80% of the median income of a family in an area.
Massachusetts Down Payment Assistance Programs
Home buyers in Mississippi get down payment assistance through the Newton First-Time Homebuyer Grant Program.
PHONE: (601) 683-6181
A Home for the Brave Program This Massachusetts down payment program is for – veterans of the U.S. armed services and active duty military get an affordable mortgage with a low Massachusetts down payment. Spouses of soldiers, sailors or Marines killed in active duty also are eligible. Massachusetts borrowers do not have to be first time home buyers, but they may not own more than one home upon closing. Financing of up to 97 percent is available for single family homes and condominiums. Financing of 95 percent is available for two , three and four family homes. Closing cost assistance also is available. In addition, grants from the Veterans Administration are available for disabled veterans who need to make accessibility upgrades.
MassHousing Mortgage This Massachusetts down payment program is for home buyers eligible for an affordable 30 year, fixed rate mortgage with a low Massachusetts down payment. In addition, mortgage payment protection program helps Massachusetts borrowers pay their mortgage in the event of a job loss. Principal and interest are covered for up to six months (up to $2,000 per month).
MassHousing Mortgage with No MI This Massachusetts down payment program Massachusetts borrowers get an affordable fixed rate, 30 year mortgage loan that does not require mortgage insurance. Massachusetts borrowers must make Massachusetts down payments of 3 percent for single family homes and condominiums, and 5 percent on two to four family homes. Massachusetts borrowers must meet income, credit and loan limit guidelines.
Purchase and Rehabilitation Loan Program This Massachusetts down payment program Massachusetts borrowers can get a loan that covers both purchase and home rehabilitation costs. Participants must meet income and purchase price requirements, and are required to make a 3 percent Massachusetts down payment. The maximum loan amount is 97 percent of the purchase price, plus rehabilitation costs or the home’s estimated value after the work is finished, whichever is less. There is a $7,500 minimum rehabilitation amount. Rehabilitation costs include cost of repairs, inspection fees, title update fees and required contingency reserve equal to 10 percent of the total rehabilitation cost.
Regardless of which type of down payment program, you will first need a mortgage. Below are mortgages that require low or no down payments:
No Down Payment Mortgages – mortgages that require no down payment
USDA Rural Loan – the purpose of the Single Family Housing Direct Home Loan is to assist low- and very-low-income applicants obtain decent, safe and sanitary housing in eligible rural areas by providing payment assistance to increase an applicant’s repayment ability. There is no down payment. Payment assistance is a type of subsidy that reduces the mortgage payment for a short time. The amount of assistance is determined by the adjusted family income.
VA Home Loan – VA helps Service members, Veterans, and eligible surviving spouses become homeowners. As part of our mission to serve you, we provide a home loan guaranty benefit and other housing-related programs to help you buy, build, repair, retain, or adapt a home for your own personal occupancy. There is no down payment as long as the sales price doesn’t exceed the appraised value.
Low Down Payment Mortgages – mortgages that require up to 3.5% down payment
FHA Mortgage Loan – the purpose of the FHA Home Mortgage Loan is to provide mortgage insurance for a person to purchase or refinance a principal residence. The mortgage loan is funded by a lending institution, such as a mortgage company, bank, savings and loan association and the mortgage is insured by HUD. A down payment of just 3.5 percent is required and may consist entirely from “gift funds.” The credit score requirement is 580.
Home Possible® Advantage Mortgage – the purpose of the Home Possible® Advantage mortgage by Freddie Mac is to offer low down payments for low- to moderate-income homebuyers or buyers in high-cost or underserved communities. Down Payment can come from a variety of sources, including friends and family, employer-assistance programs and secondary financing.
The HomeReady™ Mortgage – the purpose of the HomeReady™ mortgage by Fannie Mae is to provide flexibility for applicants buy home with down payments as low as 3%, below market mortgage rates, co-borrower flexibility, additional income sources and reduced mortgage insurance costs.
More places to find assistance on down payment:
The US Department of Housing and Urban Development (HUD) offers the following programs:
The Good Neighbor Next Door Program was created by U.S. Department of Housing and Urban Development (HUD) to help law enforcement officers, pre-Kindergarten through 12th grade teachers, firefighters and emergency medical technicians buy homes. The biggest benefit of the Good Neighbor Next Door Program is the 50% discount of the home’s list price. The only catch is that the home owner must commit to live in the property for 36 months as their sole residence.
To learn more about the Good Neighbor Next Door Program, click here.
The Section 184 Indian Home Loan Guarantee Program is a mortgage for American Indian and Alaska Native families, Alaska villages, tribes, or tribally designated housing entities. In 1992 Congress created this program to help Native American Communities with homeownership.
Section 184 loans helps borrowers buy homes with a low down payment and flexible underwriting. Moreover, the loan does not need to be used only on properties on native lands. Purchase of an existing home for single-family residences. Also allowed are new construction, rehabilitation, and refinance.
To learn more about Section 184, click here.
Massachusetts Housing Agencies
Massachusetts housing agencies are your best resource for down payment assistance programs. Through funding from HUD, the purpose of these agencies is to ensure that affordable housing is available for everyone.
- Somerville Housing Authority
- Westford Housing Authority
- Attleboro Housing Authority
- Boston Housing Authority
- Brockton Housing Authority
- Cambridge Housing Authority
- Chelsea Housing Authority
- Fall River Housing Authority
- Lynn Housing Authority & Neighborhood Development
- Lowell Housing Authority
- Malden Housing Authority
- Massachusetts Housing Authority
- New Bedford Housing Authority
- Springfield Housing Authority