Mortgage Talk - MassHousing Mortgage Income Limit Changes

MHFA is one of the most popular loan programs...
Frank Merola is Executive Mortgage Banker for William Raveis Mortgage LLC.

Mass Housing Finance Administration or MHFA is one of the most popular loan programs for home buyers in Massachusetts. MHFA offers products for first time buyers, repeat buyers and refinance situations.  Recently the income limits for a MassHousing first mortgage have been updated and are in effect for loans originated after July 25th, 2018

Mass Housing is known for making loans to borrowers with 3% down to buy a home or condominium. 2-4 unit homes can be purchased with 5% down.

The revised income limit for Barnstable County is $116,370. This limit is gross income before taxes are taken out. Keep in mind this limit only applies to the person(s) on the mortgage not the income of the occupants of the household (USDA loans).

Some higher limits do exist in other regions of Massachusetts, for example if you live in Essex county the limit is $145,350

Recently I wrote about the Mass Housing DAP or down payment assistance loan. This loan program has an income limit of $86,200. For this program a home buyer could finance the 3% down payment with a 15-year mortgage at 1% interest rate. (Example: $10,000 down payment assistance loan = 180 payments of $59.85; 1.015% APR).

Mass Housing also offers NO PMI loans aka Lender Paid Mortgage Insurance where the borrower has a higher interest rate but does not have to pay PMI or private mortgage insurance as part of their monthly mortgage payment.

Another unique feature of Mass Housing loans is that Mortgage Insurance (PMI) from Mass Housing is different from traditional PMI.  Mortgage insurance is generally required for borrowers making a down payment of less than 20% on their home purchase. It protects the lender in the event of a borrower foreclosure and claim.

Mortgage insurance from Mass Housing features MI Plus, a unique benefit that helps the borrower pay their mortgage if they lose their job and are collecting unemployment benefits. MI Plus is included in the mortgage insurance provided by Mass Housing at no additional cost.

Mass Housing services all of its loans as well.

As a delegated lender with Mass Housing I encourage first time buyers, former homeowners or anyone not sure if they can buy a home to contact me about a Mass Housing Mortgage.

Frank Merola

Executive Mortgage Banker

NMLS Mortgage Loan Originator ID: 1020051

William Raveis Mortgage LLC NMLS ID #2630

Cell 508-740-5922

Email [email protected]


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