We've predicted it, anticipated it and now achieved it: $1 billion in Home Ownership lending in 2012.
As of today, the Agency has provided 4,380 loans to homebuyers and homeowners for $1,005,149,201. To put that in some context, MassHousing provided 3,326 loans for $626,295,483 in 2010 and 2011 combined.
The record pace of our Home Ownership lending has been fueled largely by the MassHousing Mortgage with No Mortgage Insurance, which we introduced in January. Like all of our loans, the No MI product features competitive interest rates, requires only a 3% downpayment, and has no hidden fees or other surprises. But unlike the traditional MassHousing Mortgage, borrowers making downpayments of less than 20% are not required to purchase mortgage insurance.
While the No-MI loans have accounted for the bulk of our lending, a number of borrowers opt for the traditional MassHousing Mortgage with MI. Unlike traditional mortgage insurance, though, loans insured by MassHousing feature MI Plus, which helps pay the mortgage in case of job loss. Both our traditional and No-MI loans are available for purchase and refinance.
There are still three weeks to go in 2012. Stay tuned for updates as the year draws to a close.