MassHousing had its best lending year in state history in fiscal year 2009, providing more than $753.2 million for affordable housing.
The landmark year was due to a surge in lending to first-time homebuyers who flocked to MassHousing’s 30-year fixed rate-mortgages with low downpayment requirements – a feature that has virtually disappeared from the private lending market in the wake of the mortgage lending crisis, according to the state’s quasi-public housing agency.
"Providing quality affordable housing for working people is a critical part of our plan to strengthen our economy and our communities,” said Gov. Deval Patrick. "MassHousing is helping thousands of low and moderate-income homebuyers get a toehold in the middle class.”
Agency wide, MassHousing made a total of $753.2 million in loans last fiscal year, an increase of 7.3 percent over last year’s total of $702 million and nearly 5 percent more than the previous agency record of $720.5 million set in fiscal year 2007.
Approximately $506 million of last year’s loans went to more than 2,600 Massachusetts borrowers to buy or refinance a home. Lending to homebuyers was up 8.5 percent over the last fiscal year, and up 92 percent from just three years ago.
MassHousing’s mortgage insurance fund also had a record year, according to the agency. The fund – which private lenders often tap into to insure some of their affordable "portfolio loans" – guaranteed nearly $140 million in non-MassHousing loans, an increase of 183 percent from last year’s total of $49.2 million Those loans, financed with the banks’ own capital, are affordable to buyers with modest incomes, but would not have been made without the MassHousing insurance.
