MassHousing Blog

Operation Welcome Home: Helping Veterans, Military Members Achieve Homeownership

Army Veteran Maryann Sadowski and boyfriend Matt Oneil purchased a home in South Hadley with an Operation Welcome Home loan through Academy Mortgage. Read their story...

Operation Welcome Home continues to be a valuable mortgage option for Veterans, members of the National Guard and Reserves, active-duty military and Gold Star Families.

Since the program was announced on Veterans Day 2015, MassHousing has closed 107 Operation Welcome Home loans for $26.5 million. In addition, 103 of those borrowers received down payment or closing cost assistance of nearly $770,000.

Operation Welcome Home combines affordable mortgage financing with down payment and closing cost assistance for members of the National Guard and Reserves, active-duty military, Veterans and Gold Star Families. The loan may be used to purchase a 1-4 family home or condominium in Massachusetts.

Operation Welcome Home loans that require mortgage insurance come with MI Plus, which helps borrowers repay their loan in case of deployment or unemployment.

Learn more about Operation Welcome Home!

CCRI Supports Veterans in Recovery

The October 25 ribbon-cutting for Montello Welcome Home Again in Brockton

On a pristine autumn day in Brockton, MassHousing joined local, state and community leaders to celebrate the opening of Montello Welcome Home Again, a new property that provides housing for 23 formerly homeless individuals, including at least 12 Veterans.

Father Bill’s & MainSpring received a $75,000 grant for Montello Welcome Home Again through the Center for Community Recovery Innovations (CCRI), a nonprofit subsidiary of MassHousing that supports affordable, sober housing for men, women and families in recovery.

"We’re incredibly proud to partner with forward-thinking, solutions-based organizations like MassHousing," said Father Bill’s & MainSpring President & CEO John Yazwinski. "Projects like Montello Welcome Home Again would not be possible without programs like MassHousing’s CCRI grants, which support creative strategies that provide a brighter future for men and women, including Veterans, who are struggling with homelessness and are in desperate need of affordable supportive housing.”

As of June 2018, CCRI had awarded more than $10 million in grants to create or preserve more than 2,000 units of affordable sober housing in 50 Massachusetts communities. Of that, $1.8 million has been awarded to 24 projects with 520 units that serve Veterans.

In 2014, MassHousing was recognized by the National Coalition for Homeless Veterans for its innovative efforts to provide housing and social services to Massachusetts Veterans, including CCRI.

"CCRI is proud to help the men and women who have served their country live with the honor and dignity they deserve in quality affordable housing," said Ed Chase, Director, CCRI. 

Everything you wanted to know about mortgage insurance, but were afraid to ask

Mortgage insurance (aka MI or PMI) plays an important role in the mortgage lending process, especially for homebuyer making low down payments. But MI is also one of the more maligned and misunderstood terms in all of homebuying. Let’s explore mortgage insurance, what it is, why it matters and what you need to know!

What is Mortgage Insurance?

Mortgage insurance allows homebuyers to obtain a mortgage while making a down payment of less than 20% of a home’s purchase price. Many lenders view these loans as a greater risk, and MI protects the lender in case the borrower is unable to repay their loan.

Who pays for mortgage insurance, and how much does it cost?

Mortgage insurance premiums are typically paid by the borrower, as part of their monthly mortgage payment. Another option may be to have the lender cover the cost in a single, up-front payment (known as Lender Paid MI). The cost varies based on a number of factors, including but not limited to the MI provider, borrower credit score and loan amount.

How long do I pay Mortgage Insurance?

Typically, you’ll pay MI premiums until the amount you owe on your mortgage is less than 78% of your home’s original value (for single-family and condominiums with conventional loans). If your home’s value has increased, you may be able to apply to your loan servicer to cancel MI.

How do I choose an MI provider?

Your lender and the type of loan will determine your mortgage insurer. There are several public and providers of mortgage insurance. If you are obtaining an FHA mortgage, your loan will be insured by the FHA. Other loans may be insured by private insurers, or by organizations such as MassHousing, which has its own Mortgage Insurance.

What are the benefits of Mortgage Insurance from MassHousing?

Unlike most private mortgage insurance—which only cover the lender—loans insured by MassHousing feature MI Plus, a unique protection that helps the borrower repay their mortgage in case of job loss. MI Plus protections are offered on all loans insured by MassHousing at no additional cost.

In addition to MI Plus, MassHousing borrowers earning less than the area median income may qualify for lower MI premiums. MassHousing’s MI premiums tend to be equal to or lower than those of private insurers.

Do all MassHousing Loans Require MI?

No! Borrowers earning less than the area median income (AMI) may qualify for a MassHousing Mortgage with No MI. Eligible borrowers may also qualify for down payment assistance from MassHousing. Contact a MassHousing lender to see if this might be right for you!

Learn more about Mortgage Insurance from MassHousing! Or, see if you might be eligible for a MassHousing Mortgage with No MI and Down Payment Assistance!

Collaborate. Create. Celebrate.

MassHousing hosted its first partner awards ceremony October 24, to recognize some of the individuals and organizations that helped the Agency drive forward our mission. Massachusetts State Senator Harriette Chandler, pictured above with MassHousing Chairman Michael Dirrane and Executive Director Chrystal Kornegay, was presented with the Distinguished Contributor Award.

Residential Mortgage Services was recognized as top Gateway City lender. RMS representatives are pictured above with MassHousing's Chrystal Kornegay, Mike Dirrane, Mounzer Aylouche and Maureen Moriarty.

The City of Boston’s Department of Neighborhood Development was honored for partnering with MassHousing to offer homebuyer education. From left are Andrea Laing, Chrystal Kornegay, Lisa Fiandaca, Angelo Nuby and Maureen Flynn, Deputy Director of the Boston Home Center.

NEI Contracting received an award for highest achievement by a general contractor in contracting with minority- and women-owned businesses.

WinnResidential was honored for achievement by a management company in contracting with minority- and women-owned businesses. Arthur Winn of the WinnCompanies accepted the award.

Notable Fiscal Year 2018 Highlights

In response to the Commonwealth’s affordable housing challenges, MassHousing provided more than $1.2 billion in new financing for home mortgages and for rental housing in fiscal year 2018. Our portfolio of existing loans reached $8.7 billion while our cumulative financing across the Commonwealth since making our first loan in 1970 reached nearly $23 billion. Some of MassHousing's FY'18 highlights are presented below (click the image for a larger version):

Planning for Housing Production Illustrates New Way of Working with Municipalities

MassHousing’s $2 million Planning for Housing Production program helps municipalities with additional technical capacity to help implement their housing production goals. Understanding that cities and towns have unique housing challenges, plans and visions, MassHousing and its Planning & Programs Department are committed to being responsive to each community’s needs.

In FY'18, MassHousing provided grants to 15 communities who will use the funds to support a variety of efforts:

Helping to Create Jobs and Economic Opportunity

MassHousing has long recognized the economic opportunities created by the multifamily housing we finance and oversee. Working with property owners, developers and management companies, we helped to ensure that these opportunities benefited all Massachusetts communities (click the image for a larger version):

It's a Sellers' Market: Should I buy?

By Rita Coffey
2018 President,  Massachusetts Association of Realtors®

You’ve probably heard the news by now that it’s a sellers’ market. Do you know what that means? And more importantly, do you know how that impacts you when it comes to buying your first home? With a little understanding, you’ll be well on your way to becoming a homeowner. 

Whether you’ve started, or hope to start, the home buying process can be exciting and scary at the same time. There is a lot going on and working with a good local Realtor® is your best bet to make sure you find the best home for you. And the more educated you are, the better you’ll be able to understand and move through the home buying process. Learning about current market conditions is a good place to start. 

In July 2018, the Massachusetts Association of Realtors® reported there were 3.0 months of supply of single-family homes and 2.0 months of supply of condominiums available for sale. What months of supply measures is the number of months it would take to sell all the available homes that are currently listed for sale. So, why is it currently a "sellers' market?" These definitions will give you some reference: 

• A sellers' market is when there is less than 6.5 months of supply;  
• A buyers' market is when there is more than 7.5 months of supply; and   
• A balanced market is that space between 6.5 and 7.5 months of supply 

As you can see, it's typically either a sellers’ market or a buyers’ market. The name of the market generally describes who benefits the most from the current conditions. With months of supply so low, it is the seller who is generally going to benefit from greater competition among buyers in today's market.  

So, where does this sellers' market leave you? From the start, you need to know that there will be more competition among buyers. You need to make sure you’re in the best position possible to make an offer that the seller ultimately takes. One way to do this is to be pre-approved for a loan and have the pre-approval letter in hand. If you have a MassHousing loan, then you'll have that pre-approval letter. It is also good to be flexible as possible when it comes to closing dates. And the fewer conditions you add to the transaction, the greater your chances for success. Again, this is where your Realtor® can help guide you. 

While the sellers' market describes the market condition across the state as a whole, each city and town, neighborhood and street, and sellers are different. Stay committed to the process and you'll eventually find that home you’ve been looking for. And just keep in mind that regardless of the market, it is always a good time to buy (or sell) if it’s right for YOU.  

Holmes Beverly to provide transit-friendly residences, including workforce units

By Courtney Murtagh

On a once vacant parcel of land adjacent to a commuter rail station and an MBTA garage, a 67-unit transit- oriented development is nearing completion.

MassHousing provided $1.6 million in financing from its Workforce Housing Initiative and a $600,000 subordinate loan through the Federal Home Loan Bank of Boston's Helping to House New England Fund to help finance Holmes Beverly.

Most of the units at the property will be rented at market prices, but 16 are workforce housing units. Of those, 14 will be reserved for residents earning at or below 80% of the area median income (AMI), and two others for residents earning no more than 110% of AMI. The AMI in Beverly is $98,100.

The property is named after Oliver Wendell Holmes, who served as an Associate Justice for the Supreme Court of the United States from 1902 to 1932. Holmes had a summer home in Beverly, which was designated a National Historic Landmark in 1972.

All apartments will be dog friendly, and building amenities include a gym with a yoga studio, a roof deck, a library with a fireplace and a telecommuting meeting space. The accommodations and the convenient location next to transportation options make Holmes Beverly an ideal place for workforce housing. The apartments will be open to rent in August 2018.

The developer is Barnat Development, founded by Sarah Barnat.

Other funders are Boston Private Bank and the Massachusetts Housing Investment Corporation’s Healthy Neighborhoods Equity Fund.

Olmsted Green, Boston

Old Boston State Hospital Finds a New Purpose as mixed income housing

By Courtney Murtagh

Where Boston’s State Hospital once stood, in the largest collection of open space in the city, 41 new homeownership units are available, marking the completion of one of several phases that will yield more than 500 mixed-income units in Mattapan.

Olmsted Green is the first homeownership project to receive workforce housing fund; it received $1 million from the Workforce Housing Initiative. Other funding included $8.3 million from Eastern Bank and Boston Private Bank, while the city of Boston contributed $2.25 million in public funding.

The developer, Lena New Boston LLC, reserved 11 of the 41 condos with two- and three-bedroom floor plans for those who earn at or below 80% of area median income, and 11 more for those earning no more than 100% of AMI. The remaining units are priced at market levels.

The 22 low -, moderate- and middle-income units are reserved for first-time homebuyers. The units include spacious living areas and numerous amenities, including parking, a washer and dryer and a private outdoor patio.