Let’s face it – low inventory of homes in MA and RI, coupled with high home prices and mortgage interest rates have made homebuying a challenge for many. The good news is that there are ways to help increase your chance of qualifying for a mortgage in Massachusetts or Rhode Island. Across Southern New England, there are several local programs aimed at making home ownership more attainable. If you are considering buying a home in this competitive market, here are some of the most valuable mortgage programs to consider.
Massachusetts and Rhode Island Programs
Housing Our Workforce (HOW)
The HOW Program is available to homebuyers in New England, including MA and RI. The Housing Our Workforce (HOW) program is an excellent tool for obtaining a grant to cover some of the costs associated with purchasing a home. These grants help those who are earning over 80% and up to 120% of the median income for the area, with both down payment and closing cost assistance. Here’s what you need to know:
- Eligible homebuyers can receive up to $25,000 in grants to use for closing costs or down payment costs.
- You have to earn at least 80% of the local median wage, and your income cannot exceed 120% of the local median wage.
- Aims to support workers who are essential to the long-term economic vitality of the community, encouraging people to buy locally.
- You’ll need to make a minimum down payment that is at least 3% of the home’s purchase price.
- You’ll need to attend a homebuyer counseling program.
Equity Builder Program
A second option for those in MA and RI is the Equity Builder program. This is also a grant, which means you do not have to pay back the funds as long as you remain in the home for five years. Details of the program include:
- Provides first-time homebuyers with up to $30,806 in grant funding.
- Available to those who have an income at or below 80% of the HUD median income for the region where they are buying the home.
- Buyer must make a down payment of at least $500.
- In order to qualify, must attend a homebuyer education program.
Lift Up Homeownership Program
The Lift Up Homeownership program is offered through the Federal Home Loan Bank of Boston and is designed to provide financial assistance to minority first-time homebuyers, including Black, American Indian, Alaska Native, Hispanic, Asian, Native Hawaiian/Pacific Islander borrowers. The program provides up to $50,000 in down payment and closing cost assistance.
Qualifying minority borrowers must:
- Be purchasing their first home
- Earn no more than 120% of the area median income
- Complete a homebuyer counseling program
BankFive has been approved to participate in the Lift Up Homeownership program and interested borrowers can learn more by contacting us.
At BankFive, we know how difficult it is to buy a home in the current housing market. We also know how overwhelming it can be trying to determine which local mortgage program might be the right fit. So, if you are looking to purchase a home in Massachusetts or Rhode Island, let us guide you through the process. Our dedicated team of local mortgage experts are standing by to help you navigate the programs and options available to you. Contact us to schedule a free consultation or start a conversation today.