You Choose the Mortgage Insurance
The MassHousing Mortgage offers competitive interest rates, down payments as low as 3% and two different PMI options to help create affordability and increase buying power. The MassHousing Mortgage is available with mortgage insurance (MI) that can be paid by either the lender (LPMI) or the borrower (BPMI) option, both meant to help buyers with less than a 20% down payment. Any one of these choices offered by MassHousing, the State’s Affordable Housing Bank, is just right for a first time homebuyer or those looking to move up or refinance. With flexible underwriting and fixed-rate financing, a MassHousing Mortgage is the perfect loan for low- and moderate-income households. To learn more about the MassHousing Mortgage and to get useful homebuying information, borrowers should visit www.masshousing.com.
Features of a MassHousing Loan
- As little as 3% down on single-family homes and condos
- 5% down on 2, 3, and 4 family homes with a minimum borrower contribution of 3%
- Approved community second mortgages and acceptable gifts may be used with the MassHousing Mortgage and often assist the borrower with required down payment and closing costs.
- Competitive fixed-rate mortgage with flexible credit and qualifying requirements
- MIPlus™ Mortgage Payment Protection is a benefit that gives eligible borrowers confidence when purchasing a home by paying your principal and interest (up to $2,000) for up to six months if you lose your job.
- Affordable loan limits up to $424,100 for a one-unit property and higher limits for two to four unit properties
- Borrower Income limits as high as $128,925 in many cities and towns
- Limited cash-out refinance
- Conventional appraisal guidelines
- 60-day rate locks available
Benefits of a MassHousing Loan
- One fixed monthly principal and interest payment for the life of the loan (escrowed insurance and taxes may change)
- One approval – Mortgage and Mortgage Insurance through MassHousing
- Loan payments are made to MassHousing, a Boston based customer-focused service provider
- MIPlus™ can help you overcome a common fear of purchasing a home, which is, “what if I lose my job?” MassHousing is a lender you can trust
Choose the MI option that is best for you:
LPMI: The cost of mortgage insurance is paid up front by the lender with a single premium, which results in a slightly higher interest rate on the loan; however, this option tends to offer the most competitive bottom line payment and carries MIPlus™ Mortgage Payment Protection. LPMI is typically best for borrowers who expect to refinance, move, or otherwise payoff their mortgage in the first 10 to 15 years. Single premiums paid by the lender are not refundable.
BPMI: The buyer can choose to pay for mortgage insurance with a low-cost monthly premium or with a single premium at the time of closing. Single premium BPMI can be paid by immediate family, employers, city or town, sellers, non-profits or the borrower. Monthly BPMI payments are automatically dropped once the original principal balance reaches 78% of the original value of the property. BPMI is generally best for borrowers who do not expect to refinance, move or otherwise payoff their mortgage in the next 15 to 20 years. Single premiums are refundable on a pro-rated basis as detailed in MassHousing’s published refund schedule.
*Your monthly payment will vary based on the loan amount, the interest rate available at the time of application, and other factors. Subject to credit approval.