Loan allows for the repair of a home at the time of purchase or refinance
The MassHousing Mortgage with Rehabilitation is a good option for residents living in the Gateway Cities who need to make repairs on a property they want to purchase or refinance.
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.
- Borrowers will work with one lender throughout the loan and rehab process
- Loans come with MassHousing's MIPlus® mortgage insurance, which will pay a borrower’s monthly principal and interest payments for up to six months in the event of a job loss.
Gateway Cities are legislatively defined by populations with incomes below the state median, and education levels below the state average. Borrowers tend to be more low-income and minority members of these underserved communities.
Learn more about the MassHousing Mortgage with Rehabilitation and to find a participating lender or rehabilitation agency.