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GA Blog: Down Payment

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12.2.19 MassHousing Expands Down Payment Assistance Program

MassHousing has announced that their Down Payment Assistance Program will be expanding to cover up to $15,000 or 5% of the purchase price.  This is an increase from the former limit of $12,000 or 3 percent of the purchase price. 

Also announced is an increase in the income eligibility to 135% Area Median Income (AMI) for Boston and Gateway Cities.  That means for cities like Salem, Lynn, Peabody, and Haverhill that a household can earn up to $128,655 and still be eligible for the program.

Since launch in March of 2018, 1,877 households have so far used the program to purchase their first home.  That represents 13.8 million dollars in financing.  The money available through the program comes in the form of a 15-year fixed rate second mortgage. 

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7.30.19 HUD Puts Down Payment Assistance Rule Change on Suspension

 

Following a federal judge ruling in Utah, the Department of Housing and Urban Development has issued a notice to lenders that a rule change HUD made to down payment assistance guidelines in April is being put on suspension until further notice.

The initial April change stated that “a legal opinion” must be obtained for Governmental down payment assistance such that “the Governmental Entity is a federally recognized Indian Tribe operating on tribal land in which the Property is located or to enrolled members of the tribe.”

The lawsuit opposing the HUD change claims that it “unlawfully targets American Indian tribes and bands by prohibiting them from participating in home purchasing assistance programs and thus threatens a critical source of revenue for the Cedar Band” and furthermore it was adopted without proper notice.

The policy in broader terms focused on Governmental Entities having jurisdiction over the area where the property is located.

 

You can read more about this issue on HousingWire and NAHBNow.

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