What to Do When You’re a First-Time Homebuyer in Massachusetts
Last July, the median home price in Greater Boston exceeded $1 million. For first-time homebuyers, the reality of affording a down payment hits hard. A recent study from LendingTree ranked Massachusetts…
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Last July, the median home price in Greater Boston exceeded $1 million. For first-time homebuyers, the reality of affording a down payment hits hard.
A recent study from LendingTree ranked Massachusetts as the state with the second-highest median down payment requirement in the United States, exceeded only by California: $85,000.
“Everyone's going through it,” said Julian Hernandez, a licensed loan officer with Fairway Independent Mortgage Corporation, in a statement shared with the Boston Globe. “Things have never cost more, and people are struggling to find the income to offset that. Between it all, they're trying to save for a down payment.”
Can first-time homebuyers touch property in the state? The answer depends on many factors.
Rahel Choi, a broker associate with eXp Realty in Boston, recommends working with a financial professional to determine how much home you can afford. Afterward, it's time to determine how much to set aside for a down payment.
“The biggest misconception in the homebuying process is someone stuck with the idea that ‘I need a 20% down payment in order to buy a home,'” explained Mounzer Aylouche, vice president of homeownership programs with MassHousing, to the Boston Globe. The agency provides financing to make homeownership more affordable. “So don't give up because you don't have 20%.”
Down Payment Assistance in Boston and Massachusetts
MassHousing now offers down payment assistance loans up to $30,000 for eligible first-time buyers. Loan amounts are tied to the area median income and the county. Eligibility has also recently expanded to higher-income buyers under favorable terms.
For buyers in Boston, the One+Boston program assists income-eligible buyers, along with many other first-time homebuyer programs throughout the city and state.
Homebuyer Grants
Mortgage lenders can help homebuyers identify and apply for homebuyer grants.
The U.S. Department of Housing and Urban Development's searchable database includes state and local programs, nonprofit support, grants for teachers and first responders, and grants available from employers, among other resources.
According to the Globe, extra money-saving strategies include consolidating debt to improve debt-to-income ratios and trimming nonessential monthly costs to shorten the time to reaching a down payment.
