Mortgage in Massachusetts
Massachusetts is one of the top destinations to live in America. With some of the best educational institutions anywhere globally (Harvard and MIT), Massachusetts has a long history of attracting the best and brightest. With a robust job market, a fantastic city called Boston, and a rich history, more people than ever are looking to move to Massachusetts. The only problem is that with median home sales prices at approximately $440,000 , The Bay State has one of the most expensive housing markets in the nation. Fortunately, you can use the Massachusetts mortgage calculator to figure out if homeownership is within your budget.
Massachusetts Mortgage Calculator: What Loans Can I Get?
People looking to move to or within Massachusetts should be aware of the three most common loan types available.
- Massachusetts conventional mortgage: Since housing is expensive in Massachusetts, these are the most common loans. Many people buying Massachusetts homes will have jumbo loans. This categorization means they require at least 20% down and a 700+ credit score. If you're lucky enough to find one under the conforming loan limit, you can get a conventional loan with as little as 3% down and a 620 credit score.
- Massachusetts FHA mortgage: Due to how expensive the Massachusetts housing market is, purchasing with an FHA mortgage is often not possible. However, if you find one under the limits, you can put as little as 3.5% down and have a credit score as low as 500 (between 500-580 requires 10% down).
- Massachusetts VA mortgage: Active for former military service members can get loans that require as little as 0% down and have no private mortgage insurance. The only potential issue is that these loans require a credit score of 660.
Given Massachusetts housing costs, many homebuyers (especially first-time ones) will need assistance with a down payment. Fortunately, the state has a few programs to help with that!
First-Time Homebuyers in Massachusetts
MassHousing , the state's official home assistance entity, offers various programs to help first-time homebuyers.
The MassHousing Mortgage offers lower interest rates and lower down payment requirements than traditional conventional loans.
Eligibility Criteria: Buyers will need to complete an education class. Additionally, income and loan limit restrictions apply.
MassHousing Down Payment Assistance
The Down Payment Assistance Program offers up to 5% of the purchase price or $15,000, whichever is less. The assistance comes as a 15-year fixed-rate loan at 2%.
Eligibility Criteria: Income limitations apply, although those are quite generous. In some areas, borrowers can have as much as 135% of the area median income and still qualify.
Operation Welcome Home
This program provides up to $2,500 in closing cost assistance as a loan.
Eligibility Criteria: Must be in the military or a former military member to qualify. Furthermore, income and loan limitations apply.
Massachusetts Mortgage Calculator: Evaluate Your Costs
Using the Massachusetts mortgage calculator, you can evaluate how much it will cost you to move to The Bay State. If you qualify for down payment assistance, please include that in your calculations. You'll have a more accurate picture of how much living in the state will cost!