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Special Mortgage Products
Municipal Employee Mortgage
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Special Mortgage Products: Municipal Employee Mortgage

The Municipal Mortgage Program is a partnership between MassHousing and participating banks to help municipal employees buy a home, with no down payment, in the city or town where they work.

The Municipal Mortgage Program will provide 100% financing to qualified, full-time salaried municipal employees who seek to purchase a home in the community where they work. MassHousing, a quasi-public agency sometimes referred to as the state’s affordable housing bank, will insure the loans.

The program is for municipal employees whose household income does not exceed 135% of the HUD median household income for the community where they are trying to buy a home. This amount varies from region to region.

To find the income limit for the town you work in click here http://www.mhfa.com/.

Borrowers seeking 100% financing must complete a homebuyer counseling course, which is offered at South Shore Housing. For a schedule of homebuyer workshops click here

Property Restrictions for Municipal Loan Program:

• Borrowers must use the loan to purchase primary residence and may not own more than one home upon loan closing
  
• Borrowers do not need to be first time home buyers
  
• 100% financing available for single family homes and condominiums
  
• 97% financing available for two, three, and four family properties

Mortgage Rates and Terms:

• Mortgages are offered as a thirty year adjustable rate with no points
  
• Interest rate is locked for the first five years
  
• Interest rate caps restrict the amount by which the rate can increase after the fifth year

Underwriting Criteria:

• Borrowers must have good credit
  
• No restrictions based on duration of employment
  
• No cap on percentage of income that can be applied to the mortgage
  
• Borrower’s total monthly debt cannot exceed 41% of gross income
  
• No reserves required for single family home purchases
  
• Two months reserves suggested for two, three and four family properties