Welcome to Centers and Squares
As a Cambridge real estate agent, the city squares of Cambridge, Somerville and Medford and the town centers of Arlington, Watertown and Belmont, Massachusetts are my home turf. And as a lifelong New Englander who’s lived within twenty miles of Boston most of my life, I can introduce you to other nearby towns as we search for your new home. If you’re planning to sell your home in Cambridge, MA or nearby you’ll find plenty of info about the home selling process here too. Questions? Send me an email or call me at 617-504-1737.
It’s a testament to the complexity of the real estate transaction that after twelve years selling real estate full-time I still learn new things and encounter various twists for the first time on a regular basis. Today at a closing I learned three things I didn’t know about MassHousing loans.
Mortgages from MassHousing have become more and more popular in the last few years with first time homebuyers. They allow for a low down payment and since nobody seems to be offering “blends” – second mortgages that make up for down payments under 20% – a Mass Housing loan without mortgage insurance is an attractive option for many buyers.
So what do I know now about Mass Housing loans that I didn’t know before?
- You have to be an owner occupant as long as you have a Mass Housing mortgage. Even years down the road, if you still have your MassHousing mortgage, you can’t opt to rent out your place. You can buy a multi-family with a MassHousing loan but it still has to be your primary residence.
- You may have to move into the place you just bought with a mortage from MassHousing within 30 days. Most lenders require you to move in within 60 days – giving you some time for renovations, etc. – but Mass Housing cuts that period in half. I’m not sure this applies to all MassHousing loans – I found info that varies on other sites but this was a requirement of the buyer’s loan today.
- There’s the potential for paying back some of the MassHousing benefit you received if you sell before nine years have passed. Talk to your lender to get the particulars – it has to do with your income going up beyond certain levels as well as the profit you make when you sell. Mass Housing may reimburse you if you’re subject to this ”recapture tax” - again, make sure you ask your lender to explain how this works.
A good lender who offers MassHousing loans can explain these provisions and more. If you’re interested in Mass Housing loans or other mortgage products that fit your particular circumstances give Kevin Greeley of NEMoves a call at 781-929-4147.