FHA Loan vs. MassHousing (for Massachusetts)

[Christopher Johanson]

Hello all, 

I've discovered there are slight variables regarding different financing options in my area. I'm looking to purchase in Worcester, MA... and ideally I would like to put a small down payment on, say, $250,000 (Triplex - Owner Occupied). 

It has come to my attention that although FHA loans are discussed frequently throughout the forums here, nobody seems to mention the various Homebuyer Assistance programs that are available depending on the state you live in. Here in Massachusetts, there is such thing as a MassHousing loan, which only requires 3% down (compared to FHA's 3.5% down). The rate is slightly higher, at around 5.15% APR, but it doesn't require mortgage insurance like an FHA loan would. So the PITI is actually lower than the comparable case with an FHA loan.

MassHousing loans will also allow you to account for 65% of *market rent* towards your mortgage loan qualification. (If rent grosses $1000/mo, then they will allow you to count $650/mo as "income" to qualify).

Am I missing something, or is it just a great option that HAPPENS to exist because I live here...?