Buying Your First Home In Massachusetts
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Buying Your First Home In Massachusetts
MassHousing raised income eligibility for the DPA program in November 2019 for first-time homebuyers purchasing in Boston or buying in one the state's 26 "Gateway Cities." Boston and Gateway City homebuyers can earn up to 135 percent of the area median income (AMI). Homebuyers in the rest of Massachusetts can make up to 100 percent of the AMI. The Commonwealth's Gateway Cities include Attleborough, Barnstable, Brockton, Chelsea Chicopee, Everett, Fall River, Fitchburg, Haverhill, Holyoke, Lawrence, Leominster, Lowell, Lynn, Malden, Methuen, New Bedford, Peabody, Pittsfield, Quincy, Revere, Salem, Springfield, Taunton, Westfield, and Worcester.
The Home Possible Advantage mortgage only requires a 3 percent down payment and offers a fix-rate, conventional mortgage for first-time homebuyers, as well as other qualified borrowers with limited down payment savings. Homebuyers must meet minimum credit score requirements. The entire 3 percent down payment can come from personal funds, local grant programs, or gift funds.
hbspt.cta._relativeUrls=true;hbspt.cta.load(213639, 'a70c9e23-ae09-44e4-b0ae-d0363e4bac46', "useNewLoader":"true","region":"na1"); A Home Possible Advantage mortgage can be used to purchase a single-family home, a condominium, and for a refinance of an existing mortgage, without any "cash-out" at the time of the refinance. Fixed-rate mortgage loans are available in 15-, 20- and 30-year terms. You must use the home as your primary residence, and you may not have any ownership interest in another residential property as of the date of the note, which is the contract between the lender and the borrower.
First-time homebuyers must participate in an approved borrower education program, which your lender can help identify, to qualify for the Home Possible Advantage mortgage. Freddie Mac offers a free online tutorial that meets the education requirements.
A HomeReady mortgage can be used to purchase a single-family home, a condominium, or multi-unit dwelling. Fixed-rate mortgage loans are available in 10-, 15-, 20- and 30-year terms, and there are adjustable-rate mortgage options too. You must use the home as your primary residence, but unlike other loan programs, you may have any interest in another residential property.
Homebuyers must participate in an approved borrower education program, which your Massachusetts lender can help identify, to qualify for the HomeReady mortgage. One option is to participate in the online Framework homeownership education course. The Framework cost is $75.
A mortgage pre-approval will help you understand the money involved for the purchase as well as your monthly financial obligation that comes with buying your first home. Your lender will find the best first time buyer loan program that will suit your needs.
These critical 5 steps to buying your first home in Massachusetts will ultimately save you time, money and aggravation. It will allow you to make good decisions and find a house that you can enjoy for many years to come.
For most buyers buying their first home, a minimum deposit or down payment will be in the 3-5 percent range of the purchase price. There are a handful of programs that may allow you to put less down but are limited and hard to find.
If we are talking about first time home buyers in MA, you should be aware of loan programs that may be ideal for the first-time home buyer when you start talking to a mortgage broker. It will also serve you best if you talk to a mortgage broker vs a bank. A mortgage broker will have more options than a bank.
The Home Ready Mortgage provides flexibility for the low money down borrower. Borrowers can but as little as 3% down. It can be a great loan product for a Massachusetts first time home buyer. One advantage of the Home Ready mortgage is the ability to use non-traditional income sources and flexibility with non-occupant co-borrowers.
Outside of it being required by a loan program, taking a fi