Why do people love moving to Massachusetts? This state is famous as a center of higher education and academic research in the United States and the world. Therefore, a large part of young families want to move here so that their children have the opportunity to study in the best environment. Going through the home-buying process in Massachusetts can be quite a ride given that the median price for a house in this state is around $585,959. It might seem like a daunting task, a challenging journey difficult to overcome.
But don't worry! There are many programs available in Massachusetts to help future homeowners. Loan Factory is here to help you understand the best first-time home buyer loans in Massachusetts, the loan suitable for you, and help you save a lot of money in the process. So that, you can get closer to your dream of becoming a homeowner.
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Explore The First-Time home buyer loans in Massachusetts
1. MassHousing Mortgage
The MassHousing Mortgage program is designed specifically for first-time homebuyers. As a non-profit organization, MassHousing provides fixed-rate mortgages with MI Plus, which protects your loan payments in case of job loss. MI Plus covers payments for up to six months, with a maximum of $2,000 per month.
Requirements:
- Must meet credit and other eligibility criteria set by the lender.
- Complete a homebuyer education course.
- Adhere to MassHousing income limits.
- Work with an approved lender.
- Must be a single- to four-family home, or condominium.
- Must be your primary residence.
2. MassHousing Purchase and Renovation Loan
If you’re considering a home that needs repairs, the MassHousing Purchase and Renovation Loan allows you to finance both the purchase and renovation costs with a single mortgage. You can borrow up to 75% of the home’s “as completed” appraised value for renovations.
Requirements:
- Must meet credit and other lender eligibility requirements.
- Renovation borrowing must be at least $10,000, covering all renovation-related costs.
- Adhere to MassHousing income limits.
- Must be a single- to four-family home.
3. MassHousing Operation Welcome Home
The Operation Welcome Home program is tailored for first-time homebuyer military members and veterans. It offers a fixed-rate mortgage with up to $2,500 in closing cost assistance, which can be combined with MassHousing down payment assistance.
Requirements:
- Must be a member of the National Guard, Reserves, active-duty military, veteran, or Gold Star family member.
- Must meet income limits and other eligibility criteria.
4. Massachusetts Housing Partnership ONE Mortgage
The ONE Mortgage program from the Massachusetts Housing Partnership (MHP) offers a 30-year fixed-rate loan with no private mortgage insurance requirement. It’s designed for low- and moderate-income first-time homebuyers.
Requirements:
- 3% down payment for single- or two-family homes or condominiums; 5% for three-family homes.
- Minimum credit score: 640 for single-family homes or condos; 660 for two- or three-family homes.
- Assets cannot exceed $75,000, excluding college or retirement savings.
- Complete homebuyer education courses.
- Meet MHP income limits.
- Must be a primary residence.
- Must be a single- to three-family home, or condominium.
Explore The First-Time home buyer assistance programs in Massachusetts
1. MassHousing Down Payment Assistance
MassHousing offers down payment assistance for first-time homebuyers through a second mortgage. This loan can cover up to 10% of the home’s purchase price, with amounts up to $30,000 or $50,000, depending on your location.
Options Available:
- Interest-free, deferred loan to be repaid when the original mortgage ends.
- 15-year, amortizing loan with a fixed interest rate of 2%.
2. Boston First-Time Homebuyer Program
In Boston, you may qualify for a grant of up to 5% of the purchase price plus closing costs. The grant maxes out at $30,000 for incomes below 135% of the AMI or $50,000 for incomes at or below 100% of the AMI.
Requirements to qualify:
- You must be a first-time homebuyer purchasing a one- to three-family residential property or condo in Boston.
- The home must be your primary residence.
- You need to complete a Homebuying 101 class.
- Get preapproved by a lender who is part of the program.
- Your household income should be less than 135% of the Area Median Income (AMI).
- You should have less than $75,000 in assets.
3. Worcester Down Payment Assistance
For first-time homebuyers in Worcester, there's a down payment assistance program offering up to 3.5% of the purchase price, or up to $25,000. To qualify, you need to meet at least one of these criteria:
Requirements to qualify:
- Buying in a Qualified Census Tract (QCT): These are areas where 50% of households earn 60% or less of the Area Median Income (AMI), or where there is a 25% poverty rate.
- Disproportionately Impacted Households: This includes populations such as Black/African-American, Hispanic/Latino, and/or American Indian/Alaska Native.
- Current Recipients of Income-Restricted Federal Programs: If you're already receiving federal assistance based on income.
- Low Income: Your income should be at or below 185% of the poverty line, or at or below 40% of the county's AMI.
→ Read more: applying for a home loan first time buyer
Tips for First-Time Home Buyer in Massachusetts
Here are some helpful tips and advice for first-time homebuyers from Loan Factory:
1. Understand Your Budget
Before you start looking at homes, take a good look at your finances. Figure out how much you earn, what your expenses are, and what you can comfortably pay for a mortgage each month. You can use online tools or talk to a Loan Factory expert to help set your budget.
2. Check Your Credit Score
Your credit score plays a big role in qualifying for a mortgage. Check your credit report for any errors and work on improving your score if needed. Pay down debt and avoid taking on new credit before applying for a loan.
→ Read more: first time home buyer loans with low credit score
3. Save for a Down Payment
Start putting money aside for your down payment as early as possible. The more you save, the better your loan options could be. Loan Factory can also help you find programs that offer down payment assistance.
4. Get Pre-Approved
Getting pre-approved for a mortgage shows you what you can afford and makes you a stronger buyer. Loan Factory can guide you through this process, making it easy and stress-free.
5 . Take your time
Don’t rush into buying a home. It’s a big decision, so make sure the house you choose fits your needs and budget. Loan Factory is here to support you every step of the way, ensuring you make well-informed choices.
Ready to take the next step towards homeownership in Massachusetts? Loan Factory is here to help you, and will always accompany you throughout the process. Are you looking for the best first-time home buyer loans? To find the best first-time home buyer loans in Massachusetts contact us at (714) 444-9999 or visit our website at www.LoanFactory.com to learn more about your options. Our team of experts is dedicated to guiding you through the process and unlocking the door to your new home.
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