A new mortgage program in Boston endeavors to make purchasing a home not as financially draining for first-time buyers.
Announced by Mayor Marty Walsh’s office on Friday, the program should help to lower interest rates for first-time buyers, particularly those who make under the area median income, or AMI.
“The ONE+Boston Mortgage will expand the purchasing power for Bostonians interested in becoming first-time home buyers,” Walsh said in a press release. “This is a great use of Community Preservation funds and an investment in Boston’s future that strengthens homeownership and gives residents a chance to buy a home in the neighborhoods they love.”
Here’s what to know about the new program:
- The program permanently drops interest rates for a fixed-rate 30-year mortgage. “This interest-rate reduction means the new home buyer could afford a larger mortgage at a monthly payment that is still affordable to them, and ultimately, translates into more buying power for the new home buyer,” the press release says.
- People who make less than 100 percent of the area median income are eligible. For a two-person household, 100 percent AMI in Boston is $90,000 annually.
- Those who participate in this program may combine it with Boston Home Center assistance. The Boston Home Center program helps first-time buyers with closing costs and down payments. Buyers who fit the criteria for the programs can receive up to $50,000 combined.
- It doesn’t matter if the home has an income restriction for buyers. The mortgage program works for both homes that are restricted to those making a certain income and homes listed at market rate.
- The program is being paid for via $3.8 million in Community Preservation money. The city awarded the money this spring.
- There are a variety of lenders. These include Boston Private Bank, Rockland Trust, Citizens Bank, Eastern Bank, City of Boston Credit Union, Santander Bank, and Cambridge trust. It’s “likely” that more will be added, according to the press release.
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