Top Grants & Programs for Boston Home Buyers
Moving from your apartment into your first house is a big financial event in your life, one that carries a careful analysis of all financial options. Unfortunately, most people miss out on all the housing grants available simply because they don’t know where to look. The good news is first time home buyers in Massachusetts have several housing grants and programs available.
MassHousing Home Buyers Programs
The State of Massachusetts has set up a program ran by MassHousing which creates affordable homeownership options for folks with modest levels of income. Many folks upon hearing that there are income restrictions immediately leave thinking they won’t qualify, but the truth is you can actually earn a solid income and still qualify. The best part about MassHousing’s mortgage programs is they have very flexible options across eligibility requirements and different features for borrowers to optimize their mortgage. The only thing you need to do outside of the eligibility requirements is to attend a one time class prior to closing.
No Mortgage Insurance Program
Many first time home buyers are shocked to see how much their mortgage insurance will cost them month to month, but MassHousing offers mortgages without mortgage insurance (MI), also known as private mortgage insurance. The NO MI program is available to finance up to 97% of houses and condos, and even up to 95% of multi-family properties up to a four-family house. Overall the fixed interest rate is a bit higher, but the overall monthly mortgage payments are usually less for folks who can afford a 20% down payment.
Home of the Brave Grant Program
Another unique benefit available to Massachuttes home buyers is the “Home of the Brave” homeownership program. Massachusetts active duty military and veterans can take advantage of this cost-effective mortgage option which requires a low down payment. This program is also not limited to veterans buying their first home and is extended towards surviving families who lost a loved one in the line of duty. The best part of this homeownership program is if you lose your job or you’re called up to active duty your mortgage is protected. Plus you can get a $1,500 grant to cover closing costs.
Purchase and Rehabilitation Loan
Unfortunately, run-down homes in need of repair litter Massachusetts, and bring down neighborhood home values. The good news is MassHousing has a program to help you get into your very own house, and bring up your neighbor’s property values. MassHousing offers a Purchase and Rehabilitation loan program for first time home buyers looking to fix up and live in one of these run-down homes. The program helps you finance the home and all rehabilitation costs for any single-family homes up to four-family properties, but not condos. The only requirement is the property must need at minimum $7,500 in repairs, and all work must be done by a contractor licensed with the state.
There are multiple options for getting money to cover purchase prices, closing costs, rehab costs and more if you know where to look. Unfortunately, many of these programs go unused simply because homebuyers don’t put in the effort to educate themselves. But if you’re willing to put in the work, you’ll literally be putting money in your pocket.
*Updated June 2020