The City of Boston, the Massachusetts Housing Partnership (MHP), and the Massachusetts Affordable Housing Alliance (MAHA) have upped the discounts available to income-eligible first-time homebuyers under the ONE+Boston Program, as reported in a press release. Backed by the Community Preservation Act (CPA) and the American Rescue Plan Act (ARPA), this program seeks to broaden housing accessibility in the city.
Sheila Dillon, Boston's Chief of Housing, stated, "By increasing the ONE+Boston Program's discounts in a cooperative initiative by the City of Boston, MHP, and MAHA, we are empowering first-time buyers. Our shared effort will contribute to making Boston even more homey."
Borrowers earning less than 80% of the Area Median Income (AMI) will now enjoy a two-percentage-point drop in loan interest rates, and those earning between 80% and 100% AMI, will benefit from a one-percentage-point decrease. This funding, managed by MHP and allocated by the City of Boston, aims to put homeownership within reach for more Boston locals.
Elliot Schmiedl, MHP's Director of Homeownership, spoke to the difficulties first-time buyers face in the challenging current market. "Given this challenging home purchase market, MHP enthusiastically forges partnerships with the City of Boston, MAHA, and our participating lenders to provide innovative financial support for low-and moderate-income, first-time homebuyers. This enhanced offering will facilitate home ownership for hundreds of families, fostering generational wealth."
MAHA's Associate Executive Director, Hillary Pizer, shared similarly positive sentiments. "MAHA celebrates our members' continual community work delivering tangible results for homebuyers. Through these deeply discounted mortgages, many families who might be priced out otherwise can achieve the security of homeownership."
The ONE+Boston offering will be executed through a clear agreement between MHP and participating lenders who will provide eligible ONE Mortgage loans with a discounted interest rate. If loans are satisfied within the first two years, lenders will have to repay MHP a portion of the MHP Discount Payment, to ensure program monies stay within the community.
The ONE+Boston array of eligible properties include market-rate and deed-restricted single-family homes, condos, as well as two and three-family homes, given stipulations that they don't surpass Fannie Mae's nationwide loan limits. To apply, borrowers will follow the same procedure as the ONE Mortgage Program through participating lenders, who will then forward pre-qualification and funding reservation requests to MHP via the eS2 system for manual review and compliance confirmation.
The assistance provided by ONE+Boston caps at $75,000, including interest rate and down payment discounts. The program operates synchronistically with the existing ONE Mortgage Program, helping first-time buyers overcome financial obstacles to homeownership.
To qualify for the ONE+Boston Program, applicants must be eligible for MHP's ONE Mortgage Program, be a Boston resident, and be purchasing property in Boston. Non-residents working in Boston or displaced from the city in the past two years due to high rent costs may also be considered. Borrowers must meet additional loan requirements, such as minimum credit scores and income to debt ratios, according to ONE Mortgage Program's guidelines.
The cooperation between the Mayor’s Office of Housing, the MHP, and MAHA aims at enhancing the housing opportunities for Boston residents, especially those finding financial hurdles to homeownership. As these organizations increase the ONE+Boston Program's discounts and resources, they work toward a more equitable housing market, aiming to create a more diverse and inclusive society.
