I recently enjoyed a presentation from a representative of Mass Housing - the state's affordable home loan program. It was a good refresher on the benefits of this loan program. It is an attractive alternative to an FHA loan.
Like FHA, the Mass Housing program offers a low downpayment–3% (as opposed to FHA's 3.5%). It also features a comparable loan limit ($417,000.00), as well as a fairly high maxmimum income limit of $120,825.00 for Norfolk County (income limit varies by county.) In addition, certain community second mortgages are allowed–making it possible for a zero downpayment option (if approved in advance.) The rates are competitive and there
is a Rehab option in addition to a purchase option.
One of the advantages over FHA is that there is no up front Mortgage Insurance Premium, saving up front costs. Mass Housing uses its own mortgage insurance program, that has a lower rate than the FHA mortgage insurance rate, making for a lower overall monthly payment. There is also an option to have the premium paid up front–with no monthly premium payments. Seller credits or even gift money can be used for the up front payment. There are many options here.
A big advantage of the Mass Housing mortgage insurance program, MI Plus, is that it offers payment protection for the buyer. If the borrower loses his/her job (something many buyers worry about), the MI Plus covers principal & interest payments, up to $2000/month, for a period of six months. There is no additional cost for that benefit and does not need to be repaid, nor is it tacked on to the end of the loan.
I am not a loan officer so buyers interested in this program should talk to a qualified Mass Housing loan officer. But, this is a viable option for many Massachusetts buyers. Mass Housing loans are issued by participating banks and mortgage lenders. If you are buying a house in Canton or elsewhere in Norfolk County, I can put you in touch with an experienced Mass Housing loan officer.
Once you have that Mass Housing preapproval letter, I can help you buy a house in Canton, Milton, or a surrounding Norfolk County community. Just contact your Canton MA Buyer Agent for more information!
(c) Copyright 2011 Christine M. Smith, Attorney and Buyer Agent. All rights reserved.
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