Masshousing Loan- Your experience with it and is it worth it?

[Lior Rozhansky]

Hi BP, I am looking at using the Masshousing loan for my first single family property (for buy, hold, and rent out) in MA. On a high level, it seems really attractive as I can get a loan with 3% downpayment and no PMI or use the LPMI program where the lender pays the MI (I know I qualify for the loan). My question is, what is your experience or thoughts on such a loan? My biggest concern with this is is the higher interest rate you get, which I've seen can be around 5.2% instead of the 3.6% rate you can get with a conventional loan and 20% down. Have people that used this found that this increased monthly mortgage payment made it difficult to obtain their desired cash flow? One of my criteria is to get at least $150 cash flow a month on this rental, so I'm worried/curious to see how this increased mortgage payment may/has affected cash flow (leaving out other factors I need to account on the income and expense side).