THE MASS HOUSING PROGRAM

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Mass Housing offers 2 excellent programs designed specifically for 1st time home buyers who meet the household income eligibility and purchase price limit criteria.  These are the Workforce Advantage Program and the First time Homebuyer Program.  You must be a 1st time homebuyer to be eligible for either program.  The purchase price limits are almost always generous enough to meet what the borrower(s) would qualify for given the income limits.  There is no asset test for either program.

THE WORKFORCE ADVANTAGE PROGRAM

• The income limits for the Workforce Advantage Program are determined by the number of persons who will occupy the property as their primary residence.  The limit is set at 80% of the Area Median Income (AMI) for Household Size.  Only the income of adults 18 years or older will be counted.  An example of the household income limits for Boston, Essex County, Norfolk County, Cape Cod and the Islands is shown in the chart below.  There are different income limits across the state depending on the city/town you are looking to buy in.  Call us for more details.
• The Workforce Advantage provides a discounted interest rate and $30,000 for Down Payment Assistance (DPA).  A $30,000 2nd mortgage will be placed on the property.  This mortgage will be a 30 year fixed rate mortgage @ 0% interest.   All payments are deferred - meaning the borrower is not required to make any payments on this 2nd mortgage for as long as they occupy the property as their primary residence.  The $30,000 must be repaid upon refinance or sale of the property.
• When a buyer puts down less than 20% of the purchase price most mortgage programs will require Private Mortgage Insurance (PMI) to be paid in addition to the monthly mortgage payment.  The Workforce Advantage provides PMI at no cost to the borrower(s).  Employment loss coverage is included as part of the PMI.  This provides borrowers with 6 months of mortgage payments in the event of job loss during the first 10 years of the mortgage.
• The minimum FICO score is 640 and the maximum debt to income ratio (DTI) is 45%.
• For a single family home or condominium unit the minimum down payment is 3%.  The DPA or gift funds can be used for the down payment.  For 2-4 unit properties the minimum down payment is 5%.   3% of the down payment OR closing costs must come from the borrower's own funds.  The DPA or gift funds can be used for any remaining balance of the 5% down payment or closing costs.
• Borrowers can also use the DPA to buy down the interest rate on the 1st mortgage. 
• A $2,500 closing cost credit is provided for eligible service members and veterans.
• You can also layer or 'stack' other DPA or Grant programs on top of the Workforce Advantage up to 105% of the property's value.
• You must be a first time homebuyer in order to qualify for this program.
• Completion of a Homebuyer Education course is required.

THE FIRST TIME HOMEBUYER PROGRAM

• The 1st Time Homebuyer Program is for borrowers who exceed the Workforce Advantage income limits.  This program provides aggressively priced rates and $25,000 for Down Payment Assistance (DPA).  A $25,000 2nd mortgage will be placed on the property.  This mortgage will be a 15 year fixed rate mortgage @ 2% interest which comes to $161/month.   The remaining balance must be repaid upon refinance or sale of the property.   
• Borrowers can also use the DPA for closing costs or to buy down the interest rate on the 1st mortgage. 
• When a buyer puts down less than 20% of the purchase price most mortgage programs will require Private Mortgage Insurance (PMI) to be paid in addition to the monthly mortgage payment.  The 1st Time Homebuyer Program provides PMI at reduced rates to the borrower(s).  Employment loss coverage is included as part of the PMI.  This provides borrowers with 6 months of mortgage payments in the event of job loss during the first 10 years of the mortgage. 
• The income limits are determined by the person(s) who will actually be a borrower/on the deed.  An example of the income limits for Boston, Essex County, Norfolk County, Cape Cod and the Islands is shown in the chart below.  There are different income limits across the state depending on the city/town you are looking to buy in.  Call us for more details. 
• For a single family home or condominium unit the minimum down payment is 3%.  The DPA or gift funds can be used for the down payment.  For 2-4 unit properties the minimum down payment is 5%.   3% of the down payment OR closing costs must come from the borrower's own funds.  The DPA or gift funds can be used for any remaining balance of the 5% down payment or closing costs.
• Completion of a Homebuyer Education course is required.
• The minimum FICO score is 640 and the maximum debt to income ratio (DTI) is 45%
• A $2,500 closing cost credit is provided for eligible service members and veterans.
• You can also layer or 'stack' other DPA or Grant programs on top of the Workforce Advantage up to 105% of the property's value.
• As the name suggests, you must be a first time homebuyer in order to qualify for this program.
• Completion of a Homebuyer Education course is required.

For borrowers who do not fit into either of these conventional lending programs Mass Housing does offer both programs with DPA in conjunction with the FHA program.  The same income limits apply but FHA has its' own mortgage insurance requirements that go with its' more forgiving underwriting guidelines and sometimes slightly more careful property condition requirements.

THE HFA FANNIE MAE PREFERRED/FREDDIE MAC ADVANTAGE GATEWAY COMMUNITY PROGRAM

• For borrowers who cannot fit into either or both programs because of the income restrictions, Mass Housing will offer the $25,000 DPA to 1st time homebuyers who are buying in a "Gateway" city or town.  There are 2 programs for these homebuyers:

•        A.)  Allows up to 80% of borrower only area median income (AMI) instead of household AMI income.
•        B.)  Allows up to 135% of borrower only area median income (AMI) instead of household AMI income.  

• Some examples of the Gateway city/town income limits for this program are included in the chart below.  There are more cities and towns that are considered Gateway cities/towns.   Renovations are allowed with this program.  Call us for more details.