Massachusetts expands first-time homebuyer program with $25,000 interest-free loans

BOSTON — It’s no secret that Massachusetts is in a housing crisis, with many residents left wondering if they’ll ever be able to own their own home.

“It’s tough looking at how much is required,” Matt Hickey said. “It’s daunting for a new homeowner.”

“It’s sending people out of state and out of the region entirely,” Justine Griffin added.

At the state house on Tuesday, Governor Maura Healey said she’s trying to ease that struggle.

“Starting today, we’re going to get more people more buying power,” Gov. Healey said.

Gov. Healey was joined by her new Secretary of Housing and Livable Communities, Juana Matias, as well as Chrystal Kornegay, the CEO of MassHousing.

The announcement surrounds MassHousing’s ability to now expand their first-time homebuyer assistance program to approximately 1,000 families, offering a $25,000 interest-free downpayment which will act as a loan, paid back when the home is sold or refinanced.

“That 0% interest will save those homebuyers up to $31,000 over the life of the loan,” Secretary Matias said.

The governor said the funding for this expansion is not coming from the current operating budget, but instead, existing money at MassHousing.

Kornegay explained that they use the proceeds of bonds that they issue to fund mortgages.

“What the administration has done is they’ve given us some access to the capacity to issue tax exempt bonds so that we can do this program,” Kornegay said.

This assistance is available to people earning up to 135% of the area’s median income.

The governor’s office says that would range from $205,335 in eastern Massachusetts, to $165,545 in Worcester County, to $137,565 in the Berkshires and $129,870 in Hampden County.

For those in the real estate industry, it comes as welcomed news, but some like Anthony Lamacchia say it still has limitations.

“It’s definitely going to be helpful to first-time homebuyers, but you’re not going to see first-time homebuyers in the greater Boston area really able to use it because of the income restriction of $205,335,” Lamacchia said.

“If their income together is less than $205,335, it’s almost a sure thing that they’re not going to be able to buy close to Boston because there’s very little to buy under that price range, so that’s geographically going to push them out.”

The program is available for those eligible starting April 27 until July 31.

This is a developing story. Check back for updates as more information becomes available.

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