Massachusetts Home Buyer Guide

MassHousing launched Operation Welcome Home last month, a new conventional loan product for eligible Veterans that combines a traditional 97 percent loan-to-value first mortgage with a zero-interest second mortgage of up to 3 percent to create a 100 percent financing product that offers essentially the same attributes of a traditional VA loan.

The average 30-year, fixed-rate mortgage interest rate in the United States remained less than 4 percent when it declined to 3.95 percent from 3.97 percent the previous week, according to government-sponsored mortgage buyer Freddic Mac.  

Boston has happy home buyers, while Las Vegas lacks reliable residents, according to a new study by WalletHub, a consumer finance website. The study looked at how the housing recovery affected consumers across the country. Having the right type of financing could set home buyers up for happy home ownership while risky mortgages could set families up for failure down the road. Metro areas with high equity values, low interest rates and strict lending practices show promise for a stable housing market recovery. The following 1:24-minute video is from USA Today. 

If you're in the market to purchase a home, you may have heard that mortgage interest rates have increased in recent weeks after declining earlier in the year to the lowest level in about two years. 

Many potential Massachusetts home buyers may have heard the recent news that the Federal Housing Administration (FHA) reduced cost of private mortgage insurance (PMI), but there are two other important things to know about PMI as it applies to FHA mortgages. 

The real estate media, as well as many real estate bloggers, have been buzzing about the announcement that Fannie Mae and Freddie Mac will now offer first-time home buyers conventional mortgages with only a 3 percent down payment, but in Massachusetts home buyers already have two options for low down payment mortgages.

Mortgage applications for home purchases rose 1.1 percent for the week ending November 7, 2014, according to a report by the Mortgage Bankers Association (MBA), Reuters reported November 12, 2014. 

Have you been on the fence about starting the home-buying process? You may want to take advantage of what may be a limited window of opportunity. 

ZIllow reported on its blog September 2, 2014, that 30-year, fixed-rate mortgage interest rates declined "12 basis points this week," with the current rate borrowers were quoted on Zillow Mortgages at 3.96 percent. The interest rate is down from 4.08 percent at the same time the previous week. These rates are averages across the United States, and may include points or other fees that increase the overall cost of borrowing, but overall rates are down.

In June of 2013 the Commonwealth of Massachusetts announced the creation of a homeownership compact, with the goal of bringing lenders together to provide 10,000 mortgage loans to first-time home buyers over five years. The compact included a commitment among participating lenders to originate a specific number of loans through MassHousing and the Massachusetts Housing Partnership (MHP) home loan programs. 

As part of the effort to provide Massachusetts first-time home buyers with lower and moderate incomes an opportunity to own a home, the state launched a new Web site to provide potential home buyers information about MassHousing mortgages and the MHP One Mortgage. 

Despite the recent rise in median home prices, a report released by Zillow August 21, 2014 found that buying a home in the Greater Boston Area was still more affordable in July than renting. 

Home prices have risen over the past two years, but that was after a significant decline in the Boston real estate market. Meanwhile, rents never really declined during the recession. Rents have just kept climbing. 

The Boston Globe reported on July 9, 2014 that a few additional lenders have agreed to participate in a state program to provide loans to first-time home buyers through MassHousing and the Massachusetts Housing Partnership. What types of loans are available to first-time home buyers? Eligible first-time home buyers may qualify for mortgages with low down payments, no private mortgage insurance (PMI) and other benefits. 

The following are a few, but not all, of the loan programs available to first-time home buyers in Massachusetts.