MassHousing has announced a new MassHousing Mortgage with Rehabilitation loan that greatly expands the Agency’s previous purchase and rehab program.
The improved loan is now available to homebuyers and homeowners, not just first-time homebuyers. Some of the major features and terms of the MassHousing Mortgage with Rehabilitation include:
- Up to 50% of the "as completed" appraised value of the property can be financed toward renovation costs.
- As little as 3% down on a single-family property and 5% down on a two- or three-family property is required to purchase a home. Down payment and closing cost assistance can be used in partnership with this program.
- The minimum rehabilitation amount for all property types is $7,500.
- Rehabilitation costs include the cost of repairs, as well as such expenses as inspection fees, title update fees, and a required contingency reserve equal to 10% of the total rehabilitation cost.
- If the property will not be occupied during rehabilitation, a mortgage payment reserve not to exceed six mortgage payments may be included in the cost of rehabilitation.
- Licensed contractors must complete all rehabilitation work.