MassHousing Mortgage Program

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What is the MassHousing Mortgage Program?

Am I eligible?

What are the income and purchase price limits?

What benefits will I get?

How do I apply?

What other loans does MassHousing offer?

Useful links

What is the MassHousing Mortgage Program?

The MassHousing Mortgage Program is an affordable mortgage loan program for low and moderate-income residents of Massachusetts. MassHousing mortgages are offered by MassHousing, a state agency that works to increase affordable housing in Massachusetts.

Am I eligible?

To qualify for a MassHousing mortgage:

• You can be a first-time homebuyer or a non-first-time homebuyer. You cannot own another property at the time of closing.

• You must be able to afford your monthly housing expenses (mortgage payment, taxes, insurance, maintenance, homeowner fees), taking into account your income, assets, other debts (car loans, credit card payments, etc.), and job stability.

• You must meet the MassHousing income and loan limits.

• You must have good credit.

• You must take a homebuyer counseling course if you are a first-time homebuyer.

• You must take a landlord counseling course if you are buying a multi-family property.

• You must pay a minimum down payment of 3% of the purchase price for 2-family homes, and 5% for 3-4 family homes. There are no minimum down payment requirements for single family homes and condominiums.

For more information, see MassHousing Mortgages: Frequently Asked Questions.

What are the income and loan limits?

Income limits:

The MassHousing mortgage income limits vary by community. MassHousing income limits for Boston, Worcester, and Springfield, are shown in the table below:

Loan limits:

The MassHousing loan limits, which vary by property type, are shown in the table below:

What benefits will I get?

MassHousing mortgages offer:

• affordable interest rates
• low or zero down payment options
• low closing costs with no hidden fees
• MI Plus mortgage insurance through MassHousing's Mortgage Insurance Fund, with up to six-month payment protection if the borrower becomes unemployed
• flexible qualifying ratios
• 30-year fixed rate loans

MassHousing services its own loans. If you have a question or problem, you can call MassHousing for assistance. MassHousing borrowers can access their accounts online.

If you are a first-time homebuyer who is eligible for the federal First-time Homebuyer Tax Credit, and you get a MassHousing loan, you may be able to use your tax credit in advance to pay your down payment or closing costs. See MassHousing Tax Credit Loan Program for details.

How do I apply?

To apply, call a bank in your area that is approved to offer MassHousing loans. A list of approved lenders is available on the MassHousing web site:

• MassHousing Lenders

For more information, call MassHousing at 1-888-MASS-LOAN (1-888-627-7562).

What other loans does MassHousing offer?

MassHousing offers several other types of mortgage loans:

• Home for the Brave: Zero down payment loans with mortgage payment protection for veterans and active-duty military.

• Buy Cities: 30-year fixed rate zero point loans, with zero down payment option, for homebuyers purchasing homes in Brockton, Fall River, greater Gardner, New Bedford, North Quabbin, Springfield, Taunton, and Worcester.

• Purchase and Rehabilitation Loans: Loans to cover the purchase price plus cost of rehabilitation of homes in need of repair, with a minimum 3% down payment requirement, for 1-4 family homes.

See MassHousing's Loans for Home Buyers for information about these loans.

Useful links

These links are external links to web sites that are not part of MassResources.org. When you click on these links, you will leave our site. Click "Back" on your browser to return.

1. MassHousing HomeBuyers Information
   Homebuyer's guide, affordability calculator, and detailed information about MassHousing's homeownership programs. Includes information about:

   • How to Buy a Home
   • MassHousing Loans
   • Mortgage Insurance
   • Purchase and Rehab Loans
   • Home for the Brave
   • Buy Cities
   • Homebuyer Tax Credit Loan Program

2. MassHousing Knowledge Directory: Homeownership
   Advisory memos, brochures, income limits, and other information about MassHousing homeownership programs.

MassHousing Mortgage Program section last updated on 4/22/10