Mass Housing loan programs were created to assist low- and moderate-income families take the important step of buying their first homes. Mass Housing loans though are not limited to just first time homebuyers. The agency offers refinance loans and mortgages to repeat homebuyers who will not own any other property at closing.
MassHousing fulfills its mission by providing loan programs that allow for very low down payments yet offer competitive rates and discounted mortgage insurance. The only financing option offered is a 30-year fixed rate mortgage. This ensures that borrowers do not face adjusting rates or any other hidden surprises that could adversely affect their ability to make their monthly mortgage payment.
Mass Housing loan programs offer a valuable payment protection benefit in combination with its mortgage insurance (MI Plus) that will pay monthly principal and interest payments for up to 6 months should a borrower lose their job. This protection is exclusive to the Mass Housing Mortgage with MI Plus and provided at no additional cost. This benefit is not extended to the Mass Housing Mortgage with No MI.
Mass Housing Loan Program Guidelines
Program guidelines require full documentation of income and employment and set annual income limits for borrowers to qualify. Mass Housing income limits range from $93,015 to $137,565 depending on the loan program and county/town in which the property is located. The loan limit for 1-unit properties are $417,000 with higher loan amounts are available for 2-4 unit properties.
Borrowers can finance up to 97% of the value for single-family properties or condominiums and up to 95% for 2-4 unit properties. Down payment assistance meeting Fannie Mae community second guidelines is allowed to finance the remainder of the down payment and closing costs up to 105% of the value of the property. No borrower contribution is required for 1-unit properties which instead can come from a gift or down payment assistance. A 3% borrower contribution is required for 2-4 unit properties.
Maximum financing of 97% for 1-unit properties is limited to borrowers with a minimum 680 credit score. 2-unit properties require a minimum 660 credit score and 3-4 unit properties require a minimum 700 credit score for the maximum 95% financing.
Borrowers with lower credit scores can obtain up to 95% financing for single family properties and condominiums with a 660 credit score and up to 80% financing with a 640 credit score for 1-2 unit properties.
First time homebuyers are required to complete home buyer counseling. Landlord counseling is required for purchases of all 2-4 unit properties regardless of whether a first time homebuyer or not.
Types of Mass Housing Loan Programs
Mass Housing Mortgage
MassHousing’s primary mortgage program, the Mass Housing Mortgage, is available for both purchases and refinances. Purchases are available to repeat homebuyers in addition to first time homebuyers and refinances are not limited only to homeowners with a Mass Housing loan.
Income limits range for the Mass Housing Mortgage range from $93,015 to $137,565 with loan limits up to $417,000 for single family residences or condominiums.
Click to learn more about the Mass Housing Mortgage.
Mass Housing Mortgage with No MI
The Mass Housing Mortgage with No MI offers another option to low- and moderate income households for purchases and refinances of owner-occupied properties without having to pay mortgage insurance.
While rates are slightly higher than for the regular program, the monthly overall payment on a Mass Housing Mortgage with No MI is lower since mortgage insurance is eliminated.
Click to learn more about the Mass Housing Mortgage with No MI.
Mass Housing DU Refi Plus
The Mass Housing DU Refi Plus loan program allows existing Mass Housing borrowers to refinance their first mortgage with no equity restrictions at all.
Click to learn more about Mass Housing DU Refi Plus.
Mass Housing Right Rate Mortgage
Suspended effective 12/01/2011
The MassHousing Right Rate Mortgage is a special program reserved for first-time homebuyers (except for ACED areas) which offers low downpayment options and discounted mortgage rates. Income limits are lower and set at or below the area median income.
Income limits vary by the city/town in which the property is located and range from $50,880 – $86,160 for a 1-2 person household and $58,512 – $99,084 for a 3+ person household.
Click to learn more about the Mass Housing Right Rate Mortgage.
