Mass Housing Home Loan Beats FHA for Low-Moderate Income Borrowers in Boston

One more program I love is mass housing; you only need 3% down payment for a single family or condo or 5% down for a multi-family. If you’re getting a multi-family, make sure you have 6 months of cash reserves in the bank in addition to your down payment. The mass housing loan program is meant for low to moderate income families in Boston, with income of about $120,000 less.

If you’re buying in Boston or another highly populated area, you do not have to be a first time home buyer. We check your first time home buyer status by asking for 3 years of Federal Tax returns. If you’ve claimed interest on your mortgage section [schedule E], you are not a first time home buyer.

Another great benefit of mass housing is the low monthly down payments. 30 year fixed terms, no PMI; or 30 year fixed with minimal PMI; that will crush your monthly payment compared to traditional FHA loans.

Another benefit is: if you lose your house, mass housing will pay your mortgage for up to 6 months.

Also, another great thing is that they actually make you take a first time home buyer class. Why is that a good thing? Because you’re going to get the education you need to be a well thought out home owner. I strongly suggest you take this class before you start getting preapproved or during your preapproval process, since the requirement is 12 hours. That can be stressful, if you’re trying to close in 30 days and you’re going to spend every weekend in a class.

Phil Ganz (354 Posts)

Philip D. Ganz is a Boston Mortgage Broker and Boston Home Loan specialist. For information, expertise, consulting, or advice about home loans, refinancing mortgages, or commercial property loans, contact Phil with no obligation: 617-529-9317

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