Banker & Tradesman photo / file

Berkshire Bank announced last week it had started a down payment assistance program for first-time homebuyers struggling to overcome the region’s high home prices and high interest rates that look set to continue for some time.

The bank included few details in its announcement, but said prospective homebuyers who earn up to 80 percent of the area median income could qualify if they’re seeking a Berkshire Bank mortgage to buy a home located in a low- to moderate-income census tract. The assistance would take the form of grants of unspecified size that could go towards down payments and closing costs.

It was not immediately clear how much money Berkshire was setting aside annually for the program, and how many borrowers it might help.

“With the price of homes so high, the experience of purchasing a home can be overwhelming. Berkshire Bank’s down payment assistance program was created to help first-time homebuyers achieve the dream of homeownership and reduce the financial stress of the increasing down payment required to buy a home. Our experienced mortgage loan officers are here to educate and provide guidance to customers on the loan programs available to them from Berkshire Bank. Our goal is to make the mortgage process as easy as possible,” Berkshire Executive Vice President Ellen Steinfeld Sr., head of consumer lending, said in a statement.

The statewide median single-family sale price hit $600,000 in August according to The Warren Group, publisher of Banker & Tradesman, while the median condominium sale price hit $525,000.

The average interest rate on a 30-year, fixed-rate loan hit 7.49 percent last week according to mortgage-buyer Freddie Mac, the highest it’s been since December 2000, driven in part by inflation, continuing strong jobs numbers and uncertainty about the Federal Reserve’s next interest rate move, said Sam Khater, Freddie Mac’s chief economist.