MassHousing reported this week that it provided more than $1 billion in home mortgage loans last year, exceeding the agency’s previous record for homeownership lending by 52 percent.

In 2012 MassHousing loaned $1.06 billion to 4,710 low- or moderate-income Massachusetts residents who purchased or refinanced a home. The previous MassHousing record for homeownership lending in a calendar year was $695.5 million in 2009 when the agency helped 3,573 homeowners.

"We believe there is real strength in the Massachusetts housing market and this type of loan production shows there is significant demand for mortgage financing by consumers who have been waiting for the market to improve and who may have felt hamstrung by overly restrictive lending practices by conventional lenders," Executive Director Thomas R. Gleason said in a statement. "The state’s economy continues to grow stronger and that, matched with low interest rates, is giving prospective homeowners stronger buying power."

A main driver in MassHousing’s record fiscal and calendar years was a new loan program that does not require mortgage insurance (MI), even for borrowers making down payments as low as 3 percent.

The MassHousing Mortgage with No Mortgage Insurance "is the most popular loan we’ve ever offered, and has been a hit not only with homebuyers but also homeowners who can refinance at a lower rate, reduce their monthly payment and send additional money back into the economy," Gleason said.