Homeownership is part of the American Dream, however, it should be noted it’s part of the American dream that is not easy to achieve. There are financial challenges buyers need to overcome. Misconceptions buyers believe are true and keep them out of the buying market. Perspective buyers might believe homeownership is a nice dream, however, they believe they can’t ever get there. They continue to rent when buying is a viable option. The American Rescue Plan Act of 2021 provided assistance to states to mitigate the economic downturn of the pandemic. MassDreams is a federally funded program.
What is MassDreams Program?
The MassDreams program is for First-time homebuyers living in one of the 29 Massachusetts communities that were disproportionately affected by the covid 19 pandemic. First-time homebuyers in the affected communities are eligible to receive down payment and closing cost assistance through MassDREAMS. First Time home buyers must purchase a home using a first mortgage loan from MassHousing or the Massachusetts Housing Partnership. Buyers could get as much as $50,000 depending on median income.
How Does MassDream Program work
Let’s say a first-time home buyer is buying a $600,000 home and has a grant for $50,000.Here is how MassDreams works 5% of the 600,0000 would go to the purchase price of $30,000 and the remainder of the money would go towards closing costs. What are the closing costs? Closing costs can be any of the following: attorney Fees, buying points to reduce your interest rate, lowering your Private Mortgage Insurance otherwise referred to as PMI or getting rid of it altogether, and taxes just to name a few.
First-time Buyers could qualify for a larger mortgage or could qualify for other programs that help first-time homebuyers. Depending on how you and your mortgage broker structure your financing
How do I qualify for this?
Purchase a home sign MassHousing or MHP Mortgage
Live in one of the 29 communities affected by the pandemic
Buy a single-family, Condo, or purchase a 2-3 or 4-family home as your primary home.
Meet income requirements which vary from location.
Here is an example of how the MassDreams Grant could work: Let’s take Suffolk County which is Boston County. If you made less than $133,000 a year you could qualify for a $50,000 Grant and if you made over 133,000 to 179,000 then you could further qualify for a $35,000 grant.
How do I apply for this?
You will need to go to mymasshome.org and select Down Payment Assistance > MassDREAMS
- Complete the questionnaire. If you meet the initial qualifying criteria, you will receive an eligibility letter via email
- Contact a lender that partners with MassHousing or the Mass. Housing Partnership on MassDREAMS and provide them with your eligibility letter
- Work with the lender to apply for a MassHousing or MHP home mortgage loan
You will need to show proof of Residency and some of the docs that are accepted are as follows
Utility bills like a gas or electric bill
Credit card Statment
Are there any other requirements I need to follow if I am a first-time homebuyer?
First-time Buyers must complete a first-time homebuyer program prior. If they are buying a multi-family they would in addition need to go thru a landlord education class as well as a first-time home buyer program.
If I take advantage of this program can I also qualify for other programs or use it with other programs that are offered?
Yes, speak to your lender and real estate agent. You might qualify for MassHousing Advantage 2,0 program depending on your income. The best thing you can do is speak to a lender and explore all your options
How long will MassDreams be around?
It should be noted that the state of Massachusetts only received 40 million dollars, and however when that money is gone the MassDreams program will be Terminated.
When do I get the money?
If the money is available, it will be set aside for you once the property you want to buy is under contract, which usually means a Purchase and Sale agreement.
If you want more information about this program or walk to talk about ending the cycle of renting and buying a home and building wealth let’s talk.
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