First-time homeownership around the country can be prohibitively expensive, with many millennials opting to continue renting or having to borrow money from family. That’s especially true in Boston, with the average home price around the city in 2017 approaching $400,000.
In order to ease that barrier to homeownership for existing renters and the droves who are flocking to the city for the bustling job market, MassHousing recently launched a program to help some cover a down payment, which often is the most difficult part of the buying process.
Under the new program, credit-worthy residents who make an annual income at or below the area median would be able to finance up to 100 percent of the cost.
“Record-low inventory levels, rising home prices, high rents and student loan debt are all making it more difficult for the average Massachusetts household to afford to purchase a home,” said MassHousing Executive Director Chrystal Kornegay. “By boosting the buying power of low-, moderate- and middle-income households, MassHousing will support investment in neighborhoods [and] help the state’s workforce remain rooted in Massachusetts.”
The new program requires borrowers to pay back the loan with a 15-year second mortgage with a fixed interest rate of 1 percent and no additional fees.