Mass Housing Loan vs FHA Loan

[Andrew Beaver]

Hello All Massachusetts Investors/Agents,

What are your thoughts on obtaining a Mass Housing Loan vs an FHA loan?

Through my recent research, most of my discussions have been around a FHA loan but never around the Mass Housing Loan that I've just recently heard of. It seems as if the Mass housing Loan is a no brainer for owner occupants as you do not have to pay PMI. Any thoughts on this? 5% vs 3.5% downpayment isn't enough to deter me from Mass Housing Loan.

[Maureen F.]

The MassHousing loan is much better than FHA if you qualify and can afford it. My son just got one on a 3 family. What type house are you getting? Masshousing actually does have pmi but they roll it into the interest rate. Still it's much cheaper/better pmi than FHA because you don't pay the big upfront fee plus it goes away after some years. Masshousing has a max income limit, if you're buying a multifamily they include the rental income in this calculation which can be a deal breaker if there are two income earners. Generally a higher credit score is needed for MH, it's 700 for 3 family, 660 for single or two. For 3 family they require you have 6 months of reserves. Contact Bonnie at Rockland Trust, she's great.