O down Payment home LoansPrepayment for housing loans
In order to give first-time future home owners a foot up in the state's costly residential property markets, MassHousing has long been offering low-interest loans with minimum down-payments, premised on certain revenue entitlement criteria - most borrower qualifiers for 97 per cent funding through the quasi-public institution. MassHousing went one better on Monday and launched a new programme that allows borrower to take out a second credit to cover their down payment.
This is how the new programme works: MassHousing will offer "down payment assistance" that will cover up to 3 per cent of the price of a home or condominium up to $400,000. Even if you buy a home that exceeds $400,000, the total amount of down payment aid you can get is $12,000.
The deposit, however, is not a subsidy - it is a repayment you must make through a 15-year second mortgage bearing a 1 per cent interest fix and with no extra charges. In order to be eligible for the down payment support programme, you must have a minimum of 660 credits, a gearing of 41 per cent and an average or lower per annum domestic revenue than the region's average revenue.
Once you have made an enquiry for a real estate object, you can make a formal request for the MassHousing mortgages. MassHousing's majority of borrower are entitled to a home based guarantee that will cover up to 97 per cent of the total amount paid. Part of the claim procedure is the handling of the red tape for a second mortgages - the one that will cover the deposit up to 3 per cent or $12,000.
MasseHousing itself is not a creditor, but it works with a group of 150 financial institutions, cooperative societies and mortgages bank. After your quote is approved, you are tied to the two distinct MasseHousing mortgages that are supplied together - one for the majority of the loan and the other for the down payment.