|Trying to Buy Your First Home? Masshousing Just Announced A NO Downpayment Option to Buy!|
The past few years have been tough for home buyers hoping to gain entry to Greater Boston’s red-hot housing market.
From a lack of homes for sale to overcrowded open houses to bidding wars, the chance to buy a house has become increasingly difficult. For many, even saving for a small down payment — never mind the recommended 20%— can be next to impossible.
It’s an issue that MassHousing is hoping to tackle through a new program that would cover the down payment on a property — up to 3%— for some first-time home buyers. The state agency said Sunday that under the program, income-eligible people using a MassHousing mortgage to purchase their first home will be able to finance up to 100% of the cost. They’ll eventually have to pay back the down payment — through a low-cost secondary mortgage — but they won’t be required to have cash up front.
The down payment would be covered by a 15-year second mortgage with a fixed interest rate of 1% and no additional fees. The loan amount would be capped at 3% of the purchase price — which can’t exceed $400,000 — for a single-family home or condominium unit.
In addition to meeting minimum credit standards to qualify, first-time home buyers must have annual household incomes at or below the area’s median income. In the eastern part of the state, that’s an annual household income of up to $103,400 and it’s $85,700 in Worcester County.
The MassHousing down payment program does have some strict requirements for would-be buyers — including a minimum credit score, debt-to-income qualifications, and mandatory attendance at a homeownership education class.
With interest rates expected to rise this year, this program comes at an opportune time for people who have been unable to break into the housing market.
Let’s connect and discuss this no downpayment option for your new home purchase. I’d love to put my 20+ years of real estate experience to work for you!