Massachusetts MassHousing Mortgage Program Guide

Guide to the Massachusetts MassHousing Mortgage Program

The Massachusetts MassHousing Mortgage Program provides affordable mortgage solutions to help residents of Massachusetts achieve homeownership. The program offers low-interest rates and various types of assistance to make purchasing a home more accessible, especially for first-time homebuyers and those with moderate income. For 2025, the program continues to offer great benefits that can help reduce the financial challenges of homeownership. This guide will walk you through how the program works, its benefits, and the steps to apply.

1. Program Overview:

• Purpose: The MassHousing Mortgage Program is designed to support homebuyers in Massachusetts by offering competitive mortgage rates, down payment assistance, and various other resources. It aims to make homeownership more affordable for first-time buyers and individuals with moderate incomes.
• Loan Terms: The program offers fixed-rate mortgages with flexible terms, typically up to 30 years. The low-interest rates available through MassHousing make monthly payments more affordable, helping you achieve long-term financial stability.
• Assistance Options: In addition to the low-interest mortgage rates, the program also offers down payment assistance, which helps reduce the upfront costs of buying a home. The assistance is available to eligible buyers as a second mortgage with deferred payments.

2. Eligibility Requirements for 2025:

To qualify for the Massachusetts MassHousing Mortgage Program, applicants must meet the following criteria:

• Income Limits: The program is available to homebuyers with moderate incomes. The specific income limits vary by household size and the county in which you are purchasing a home. These limits are adjusted annually to reflect changes in the cost of living and housing market conditions.
• First-Time Homebuyer: Although the program primarily targets first-time homebuyers, it is also available to buyers purchasing homes in designated areas or veterans who have not owned a home in the past three years.
• Credit Score: A minimum credit score of 640 is required to qualify for the MassHousing Mortgage Program. Lenders may also evaluate other financial factors, such as your debt-to-income ratio, when considering your application.
• Property Requirements: The property must be located in Massachusetts and must be your primary residence. The home must also meet specific price limits set by the program to ensure it remains affordable for eligible buyers.
• Homebuyer Education: Applicants must complete a homebuyer education course to ensure they are well-prepared for the responsibilities of homeownership. The course covers essential topics such as budgeting, understanding mortgage terms, and managing homeownership costs.

3. How to Apply:

Applying for the Massachusetts MassHousing Mortgage Program is simple and straightforward:

• Find a Participating Lender: The MassHousing Mortgage Program works with a network of approved lenders. You will need to contact a participating lender to begin your application process. The lender will help you assess your eligibility, gather the required documents, and submit your application.
• Required Documentation: Be prepared to provide documents such as proof of income, credit history, tax returns, and a certificate from the homebuyer education course.
• Submit Your Application: Once your documentation is complete, submit your application to your lender. The lender will process your application and guide you through the approval process, informing you of your eligibility and loan approval status.

4. Homebuyer Education Course:

• Mandatory Requirement: All applicants must complete an approved homebuyer education course. This course helps ensure that you understand the homebuying process and the responsibilities of owning a home.
• Course Options: The course is available both online and in-person, providing flexibility to meet your needs. Upon completion, you will receive a certificate, which is required to complete your loan application.

5. Down Payment Assistance:

• Assistance Amount: The MassHousing Mortgage Program offers down payment assistance to help cover the upfront costs of purchasing a home. Eligible buyers can receive up to $10,000 in assistance, which can be used for both down payments and closing costs.
• Deferred Loan Terms: The down payment assistance is provided as a second mortgage, with deferred payments. This means that you won’t need to make monthly payments on this loan, and it will only be due when you sell, refinance, or pay off the first mortgage.

6. Finalizing the Loan:

• Approval Process: After your application is approved, your lender will guide you through the next steps, including signing the loan documents and preparing for closing.
• Closing Costs: While the program helps with down payment and closing costs, you may still be responsible for other fees involved in purchasing a home. Your lender will explain all of the costs associated with your mortgage loan.

Our team of knowledgeable loan officers is here to assist you through every step of the process. From the moment you begin your application to the day you close on your new home, we’ll be with you every step of the way to ensure that you receive the full benefit of the Massachusetts MassHousing Mortgage Program and make homeownership an attainable goal.