Massachusetts Mortgage Overview
Massachusetts has around 6.8 million people
and the average home price is around $380,000. It's one of the most populated
states in the New England area thanks to its incredible economy rich with
high-tech companies and a diverse set of industries.
If you're looking for a stable place to buy
a home Massachusetts is a great choice. Here are your loan options in
Massachusetts FHA loans
Borrowers with less
than perfect credit enjoy the FHA loan. You only need a 580 credit score for a
3.5 percent down payment or a 500 - 579 score with a 10 percent down payment.
FHA loans have flexible deb ratio guidelines and as long as you have a stable
income, may be a good candidate. The rates are low, but the mortgage insurance
lasts for the loan term.
Massachusetts VA loans
Veterans don't need
perfect credit to buy a home. The VA loan makes it easy. All you need is proof
of your time in the military, a 620 credit score, and enough money to cover
your debts and the cost of living. VA loans don't charge mortgage insurance.
Massachusetts USDA loans
If you will live in a
rural area and make less than 115 percent of the area's median income, the USDA
loan may be a great option. You don't need a down payment but must have a 640
credit score and a max 41 percent debt ratio. USDA loans have mortgage
insurance for the loan term, but the rates are low.
Massachusetts conventional loans
If you have
great credit and a 3 percent down payment for first-time homebuyers or 5
percent for everyone else, the conventional loan may be a great option. Conventional
loans require low debt ratios and stable employment, but in exchange have low
rates and Private Mortgage Insurance you can cancel when you owe less than 80 percent
of the home's value.
First-Time Homebuyer Programs in Massachusetts
The MassHousing mortgage
makes it easy to afford a mortgage if you are within the income
limits for your area. It offers low interest rates to make the mortgage
Down payment assistance
Receive up to 5
percent of the home's purchase price or $15,000 as a 15-year term with a 2
percent rate. If you sell the home or refinance, the loan becomes immediately
Workforce Advantage 2.0
If you earn 80 percent
or less of the area's median income, and purchase a single-family home or
condo, you may secure a low rate first mortgage and 0% interest down payment
loan. Payments are deferred until you move or refinance the loan.
Expanded Down Payment Assistance
If you move
to certain areas of MA, you may receive an amount of down
payment assistance that's 5 percent of the sales price or $25,000,
whichever is less.
Operation Welcome Home
Veterans and members of
the Reserves may get up to $2,500 in closing cost assistance along with a loan
with favorable terms.