Timothy Sullivan

Few would-be homebuyers are having an easy time navigating the current Massachusetts housing market. An extremely low level of inventory of homes for sale, rising prices and sluggish construction rates of reasonably-priced new homes are all combining to squeeze would-be homebuyers. This market is tough on everyone, but it’s especially difficult for low- and moderate-income buyers.

The unique pressures now on low- and moderate-income buyers – escalating prices and an ultra-competitive homebuying environment – threaten to weaken a core pillar of economic security and upward mobility. Homeownership helps working families build wealth, and stabilize their neighborhoods. That’s why MassHousing is acting now to increase the buying power of low- and moderate-income buyers.

Beginning in July, MassHousing is launching a limited-time initiative designed to make homeownership more attainable, and sustainable, for working families.

From July through September, MassHousing is offering low- and moderate-income homebuyers a $1,500 closing cost credit. This closing cost credit is open to qualified buyers with incomes at or below 80 percent of area median income, with household incomes below $82,270 in Eastern Massachusetts, or $53,280 in Western Massachusetts.

Through this powerful new pilot incentive program, we are making homeownership more achievable for buyers who may be struggling in the current market. And we are advancing MassHousing’s longstanding commitment to providing affordable, conventional mortgage finance to Massachusetts residents.

MassHousing has built this new closing cost credit to be as simple and user-friendly as possible, for lenders, Realtors and borrowers alike.

Since lenders in MassHousing’s network of 170 partner institutions now have the choice of using automated underwriting systems from either Fannie Mae or Freddie Mac, mortgage bankers will find it easier to underwrite and process mortgage applications.

Because MassHousing is equipping buyers with conventional, locally-serviced financing, Realtors will have the surety that home sales will move to closing quickly and predictably.

And for borrowers of modest means, the $1,500 closing cost credit delivers added affordability that makes homeownership possible. Borrowers will receive the credit at closing, with no strings attached, no hidden fees and no payback requirements. Many MassHousing customers are first-time homebuyers. Giving eligible buyers $1,500 off the cost of their first home increases their buying power, and makes it easier for families to complete one of the most significant purchases of their lives.

Sustainable Homeownership Options

This limited-time initiative builds on MassHousing’s strong suite of offerings for Massachusetts homebuyers.

MassHousing helps Massachusetts families achieve homeownership through competitive interest rates, low down payment requirements, MI Plus unemployment insurance and consumer education. MassHousing also extends a discounted interest rate, and discounted mortgage insurance, to buyers at or below 80 percent of AMI, helping to make homeownership more sustainable for the lifetime of our borrowers’ mortgages.

Combining responsible underwriting, affordable credit and community-based homebuyer education advances sustainable homeownership, by empowering low- and moderate-income families in Massachusetts to own a piece of their communities.

Over the past decade, our agency has helped more than 30,000 households achieve homeownership. During that period, we’ve extended $2.3 billion in mortgage financing to families at or below 80 percent of area median income, creating homeownership opportunities for nearly 13,500 lower-income households, and building a stronger, more inclusive commonwealth.

Now, by increasing borrowers’ buying power, MassHousing’s summer closing cost credit will help working families push through a tight market and achieve homeownership.

Tim Sullivan is the executive director of MassHousing.

Another Tool In The Homeownership Box

by Banker & Tradesman time to read: 2 min
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