That makes the rollout of the program particularly timely, as mortgage payments are a leading barrier to purchasing a home. That was before mortgage interest rates surged to their highest since 2002 - with the average 30-year fixed-rate mortgage topping 7 percent this week, according to Freddie Mac - meaning someone who closes on a home in Massachusetts today would in many cases shoulder a monthly payment more than $1,000 higher than people who purchased a home for the same price a year ago. Harvard’s Joint Center for Housing Studies estimated earlier this year that families in Greater Boston need to earn a combined $181,254 to afford the area’s median-priced house.
The program, announced last week, represents an unusually large step toward boosting homeownership in a state that has some of the most expensive housing in the United States and where even middle-income buyers struggle to afford a home. The agencies have already been offering mortgage assistance in smaller amounts but the ARPA funding will allow them to reach hundreds, if not thousands, more would-be buyers, said Schmiedl.
MHP and MassHousing will dole out the assistance to qualified applicants through their discounted mortgage products. “So this program isn’t just about achieving homeownership, but it’s also about helping folks sustain it, so that they don’t end up in a property that they can’t afford down the road.” “By helping with things like closing costs, we’re helping people keep money in their pocket, so that when they purchase they’re not buying a new home with zero dollars in their savings account,” said Elliot Schmiedl, the director of homeownership at the Massachusetts Housing Partnership, one of two quasi-state agencies that will handle the funding. People making between 100 and 135 percent of the AMI could receive up to $35,000. Would-be buyers making less than 100 percent of the area median income - $140,200 for a family of four in Boston, for example - will be eligible for up to $50,000 in assistance, though aid will vary based on their community’s home prices.
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