Low Cost Mortgages for Human Service Workers
The Municipal Mortgage Program has been expanded to include municipal, county, and state employees, and non-profit employees in public service professions such as public safety, law enforcement, education, social services, and healthcare. The program, established by the the Massachusetts Finance Housing Agency (MFHA), offers low interest and 0% down payment. The program allows a worker to buy a more expensive home than they might otherwise be able to afford, and eliminates the need to part with hard-earned savings.
Eligibility -- The program is available to full-time public service employees with household incomes at or below 135% of the median income in the city or town where they seek to purchase a home. This amount varies from city to city.
Property Restrictions -- Borrowers must use the loans to purchase a primary residence, and may not own more than one home upon closing of the loan. Borrowers do not need to be first-time homebuyers.
• 100% financing available for single family homes and condominiums
• 97% financing available for two family properties
• 95% financing available for three and four family properties
• No refinancing options are available with this program
Underwriting Criteria -- Borrowers must have good credit. Total monthly debt cannot exceed 41% of gross income. There are no restrictions based on duration of employment. No reserves are required for single family home purchases for borrowers with higher credit scores. Two months reserves are required for two, three, and four family properties. All borrowers must be US citizens or lawful permanent residents .
Mortgage Rates and Terms -- The
Municipal Mortgage Program offers low cost adjustable rate programs and thirty year fixed rate loans. There is no purchase price limitation.
For more information, contact your field rep at 509, contact MFHA directly by calling Tom Norton at 617-854-1061, or visit www.masshousing.com.