Massachusetts - Government Backed Loans

The DHCD's mission is to strengthen cities, towns and neighborhoods to enhance the quality of life of Massachusetts residents. They provide leadership, professional assistance and financial resources to promote safe, decent affordable housing opportunities, economic vitality of communities and sound municipal management.

Purchase Programs

American Dream Downpayment Initiative - ADDI

ADDI is a Federally funded program designed to provide first-time homebuyers with downpayment and closing cost assistance. The assistance that is provided qualifying homebuyers is an interest-free, deferred-payment 5-year loan in the amount of 5% of a home's purchase price, with a maximum $10, 000 limit. A homebuyer education course is required of all eligible households, and purchase price and income limits apply.

Continue reading about ADDI.

Soft Second Program

The Soft Second Program combines a conventional first mortgage with a state subsidized second mortgage in order to assist low- to moderate-income homebuyers in purchasing their first home.

MASSHOUSING

Refinance Programs

MyCommunity Refinance Loans

MyCommunity Refinance Loans are standard refinancing loans that enable homeowners to avoid missed mortgage payments and foreclosure through 30-year, fixed-rate mortgages, wherein closing costs can be rolled into one loan. The maximum loan amount for a single-family home is $417,000.

Purchase Programs

MassAdvantage

The MassAdvantage program provides two fixed-rate, low-interest loans that enable low- to moderate-income first-time homebuyers to achieve homeownership. MassAdvantage Standard requires a minimum 3% downpayment ans is available in 30- to 40-year terms. MassAdvantage FirstStep alloes borrowers to repay only the interest for the first, after which principal payments as well as interest begin. Income limits apply to both loans.

MyCommunity

MyCommunity mortgages have higher income limits than other mortgage programs, no downpayment is required and there are no first-time homebuyer requirements. The MyCommunity mortgage offers a loan limit as high as $417, 000 for single-family home.

Take the T Home

Take the T Home offers frequent transit riders a no-downpayment, low-interest rate mortgage. In order to qualify, borrowers must provide proof that they are regular transit riders as well as purchase a home located near public transportation. This is a 30-year, adjustable-rate mortgage, wherein rates are locked after 5 years time.

Municipal Mortgage Program

The Municipal Mortgage Program offers police officers, teachers, nurses, firefighters and other public servants a no-downpayment loan. Borrowers must purchase a home located within the community they serve, and income limits apply.

Purchase and Rehab

The Purchase and Rehab program assists borrowers in covering the costs of both purchasing a home in need of repairs and making improvements on it through a low-interest rate loan. Borrowers must be first-time homebuyers and provide a minimum 3% downpayment.