Have you heard the term "Gateway City" yet? Massachusetts has a relatively short list of cities that have been designated as such. Why is that important? In terms of first-time buyers working hard to break into this tight real estate market, it means they have two new options for down payment assistance. (Mass housing says you do not have to be a first-time buyer if you are purchasing in Boston, Chelsea, Cambridge, Everett, Fall River, Lawrence, Lynn, North Adams and Somerville.)
Option 1: Qualified buyers who earn up to 100% of the area media income (or 135% of AMI in Boston or a Gateway City*) can get down payment assistance of up to 5% of the purchase price or $15,000, whichever is less. Eligible properties are single families, condos and 2, 3 and 4 family homes. Down payment assistance comes in the form of a second mortgage loan with a 2% interest rate and a 15 year term.
Option 2: Qualified buyers who earn up to 80% of the area median income and who buy in Boston or a Gateway City* can get down payment assistance of up to 3% of the purchase price or $15,000, whichever is less. Eligible properties are single families and condos. Down payment assistance comes in the form of a second mortgage loan with a 1% interest rate and a 15 year term.
I know what your next question is.."Where are the gateway cities in Massachusetts?" *PEABODY, SALEM, LYNN, HAVERHILL, REVERE, Attleboro, Barnstable, Brockton, Chelsea, Chicopee, Everett, Fall River, Fitchburg, Holyoke, Lawrence, Leominster, Lowell, Malden, Methuen, New Bedford, Pittsfield, Quincy, Springfield, Taunton, Westfield, Worcester.
For more information give us a call at 978-356-8922 and work with one of our north shore real estate specialists in combination with an experienced lender.
