First time home buyers often struggle with saving up enough money for a down payment. During that time, home prices and interest rates continue to rise, making it even more challenging to buy. If you’ve been delaying a home purchase due to insufficient down payment funds, here’s some good news. MassHousing down payment assistance for homebuyers is now available!
Amount Down Payment Assistance
Through the MassHousing home loan program offered by Sierra Pacific Mortgage, Massachusetts homebuyers can receive up to $12,000 to cover the 3% down payment requirement. This is provided as a low interest loan to be paid back over a 15-year period. The interest rate is just 1% and is a fixed rate. Thus, buyers borrowing the maximum $12,000 would pay $71.82 per month over a 15-year period.
Here’s a chart of other payment amounts based on the amount borrowed:
|Amount Borrowed||Monthly Payment Over 15 Years|
Determining the Amount of Assistance
Down payment assistance covers 3% of the purchase price, up to $12,000. If you are purchasing a home for $300,000, your down payment would be $9,000. On a home for $400,000, you would need the maximum $12,000. A 3% down payment on a home for $450,000 is $13,500. Thus, you would need the $12,000 down payment assistance plus an additional $1,500 of your own funds.
Repayment When Selling Within 15 Years
MassHousing Down payment assistance for homebuyers is technically a loan (separate from your regular mortgage). Thus, if you sell your home before the 15 years, you must pay off the balance.
Requirements for MassHousing Down Payment Assistance for Homebuyers
There are some qualification criteria for this MassHousing down payment assistance program. First and foremost, you must be a first-time buyer. This means that you may not own another home or have owned one within the last 3 years. Additionally, your income must not exceed the median income for the area. Property and other restrictions also apply. For more information on this program and to find out whether you qualify, contact me today at 978-376-5389.