Mortgage Products
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MassHousing Products

MassHousing Loan

More than 50,000 families have used a simple, straightforward MassHousing loan to buy their first home.

Features of a MassHousing Loan

With a loan from MassHousing, you'll get

  • Affordable interest rates, fixed for the life of the loan
  • Mortgage payment protection, which helps pay your loan in case you lose your job
  • No hidden fees or other surprises

Additioanl Benefits

  • Low-downpayment options
  • Flexible underwriting and income limits mean more families qualify
  • Loans serviced by MassHousing. If you have a question or concern, you'll know who to call

Eligibility

To qualify for a MassHousing Loan, borrowers must

  • Meet income and loan limit guidelines
  • Purchase a condominium, single family, 2, 3 or 4-family property
  • Have good credit
  • Complete a homebuyer education course
  • Property must be your primary residence through the term of the loan. 

Want to learn more? Ask a participating lender about a MassHousing loan. See if you might be eligible for a MassHousing Mortgage!

MassHousing Mortgage with Rehabilitation

A MassHousing Mortgage with Rehabilition can help you purchase and rehabilitate a property, or refinance and rehabilitate your current home. 

How to Apply

To apply for a MassHousing Mortgage with Rehabilitation, contact a participating lender or rehabiliation agency

Income and Loan Limits

To obtain a MassHousing Mortgae with Rehabilitation, borrowers must meet income and loan limits, which vary by city or town. 

Up to 50% of the ''as completed" appraised value of the property can be financed toward renovation costs. 

Downpayment

A MassHousing Mortgage with Rabilitation features low down payment requirements. Down payment and clsoing cost assistance can be used in partnership with this program.

Loan Terms 

  • Minimum rehabilitation amount is $7,500 for all property types.
  • Rehabilitation costs include the amount required to pay for the repairs, as well as other allowable expenses:
    • Inspection fees
    • Title update fees
    • Required contingency reserve equal to 10% of the total rehabilitation cost.
  • The lender may charge a fee of up to $1,500 based on the cost of the rehabilitation.
  • Licensed contractors must complete all rehabilitation work.

 Operation Welcome Home 

The Operation Welcome Home mortgage program supports veterans, active-duty military, members of the Reserves and National Guard, and Cold Star Families in achieving the dream of homeownership.

The program combines a traditional MassHousing Mortgage Loan with a deferred downpayment and/or closing cost assistance loan.

 How to Apply

Operation Welcome Home loans are made available through a network of approved lenders.  

Eligibility

To qualify for an Operation Welcome Home Loan, you must

  • Be an active duty military member; Veteran who served honorably; member of the Reserves or National Guard; or a Gold Star Family member.
  • Be a first time homebuyer*
  • Purchase a 1-to3-family property in Massachusetts (including condominiums)
  • Meet income and loan limits

*You do not have to be a first-time homebuyer if you are purchasing a home in Boston, Chelsea, Cambridge, Everett, Fall River, Lawrence, Lynn, North Adams and Somerville. 

Program Features

  • Competitive, fixed interest rates with flexible credit and qualifying requirements
  • A deferred down payment or closing cost assistance loan option for eligible borrrowers
  • Borrower or lender paid mortgage insurance options are available
  • Loans insured by MassHouing feature  MIPlus™ Mortgage Payment Protection benefit, which helps repay your laon if you are deployed or lose your job, or for Reservists and National Guard Members called to active duty
  • A Purchase & Rehabilitation option is available

To learn more about Operation Welcome Home, contact a participating lender. 

MassHousing Mortgage with No MI

No MI means no mortgage insurance. You get the same safe, secure, low-downpayment MassHousing loan without the monthly mortgage insurance premiums.

Product Features

  • Affordable interest rates, fixed for the life of the loan
  • 30-year repayment terms
  • Minimum 3% downpayments for single-family homes and condominiums; 5% downpayments for 2, 3 and 4-family homes
  • No hidden fees or other surprises

Eligibility

To qualify for a MassHousing Mortgage with no MI, borrowers must 

  • Meet income and loan limit guidelines
  • Purchase a condominium, single family, 2, 3 or 4-family property
  • Have good credit
  • Complete a homebuyer education course
  • Property must be your primary residence through the term of the loan

Mortgage Insurance from MassHousing

Not all of MassHousing's mortgage programs require mortgage insurance - even with downpayments as low as 3%. But Mortgage Insurance from MassHousing is unlike what you mgiht find elsewhere. 

What is Mortgage Insurance?

Mortgage Insurance (MI) is often required for homebuyers making downpayments of less than 20% of their home's purchase price:

  • Lenders view borrowers making downpayments of less than 20% as greater credit risks
  • Mortgage insurance protects the lender's investment, which allows them to make the loan
  • Traditionally, the borrower pays for the cost of MI, which only protects the lender

MI Options from MassHousing

Not all MassHousing loans require mortgage insurance. Those that do offer several options:

Borrower-Paid Mortgage Insurance

BPMI is similar to what you might find elsewhere on the market.

  • BPMI from MassHousing typically features MI premium rates equal to or lower than private mortgage insurance.
  • On MassHousing loans, the MI coverage required is less tahn traditional, conventional loans, meaning a lower monthly MI payment for you
  • BPMI is best for borrowers who don't plan to move or refinance for 15 to 20 years

Lender-Paid Mortgage Insurance

With LPMI, the cost of the life-of-loan mortgage insurance policy is paid for by the lender at closing.

  • The lender funds the LPMI premium by charging a slightly higher interest rate, eliminating the monthly MI premium for the borrower
  • LPMI is best for borrowers who expect to move, refinance or pay off their loan within the first 10 to 15 years

MI Plus

Regardless of which MI option you choose, all loans insured by MassHousing feature MI Plus, a unique borrower protection that helps pay your mortgage if you lose your job. MI Plus

  • Covers principal and interest payments for up to six months (up to $2,000/month)
  • Comes at no added cost on loans insured by MassHousing
  • May be used for any six months during the first 10 years of the loan.

 

View Participating Lenders of MassHousing Mortgages