Patrick, MassHousing Monetize First-Time Homebuyer Credit
By Ian B. Murphy
Banker & Tradesman Staff Writer
Deval Patrick has announced a loan program through MassHousing allowing
first-time homebuyers to monetize and use an $8,000 federal tax credit
as a funding source toward the closing costs of their new home.
principal and interest payments for the loan will be deferred until
June 1, 2010, to allow first-time homebuyers to pay back MassHousing
with their federal tax credit. If loans aren't paid by the June
deadline, they will be amortized for 10 years at the rate of their
Gary Rogers, president of
the Massachusetts Association of Realtors (MAR), said not paying back
the loan with money saved from the tax credit is still a decent
option."If that's what the homebuyer opts to do, that's still an
excellent program; usually second mortgages have much higher rates,"
Rogers told Banker & Tradesman.
will be available only to homebuyers with MassHousing mortgages,
through MassHousing-approved lenders. To be eligible, loan participants
must use the home purchased through the program as their primary
residence for at least three years, and must purchase a one, two, three
or four-family home from a seller unrelated to the buyer by Nov. 30.
loans will both help prospective homebuyers achieve the comfort and
stability of homeownership for their families, and also stimulate the
commonwealth's economy through increased home sales, while reviving
neighborhoods impacted by foreclosure," Patrick said in a statement.
is the first program of its type in Massachusetts, according to Rogers,
but there have been other variations of the same theme in other states.
MAR worked with Patrick, Lt. Gov. Timothy Murray, and MassHousing to
bring the program to fruition. "It's a partnership; we're right there
with them, and we'll be making sure that our Realtors inform the people
who this is aimed for, and that they know about the program," Rogers
"The Tax Credit Loan will be of great
benefit to homebuyers, Realtors and MassHousing-approved lenders, and
we applaud the Patrick-Murray administration for its leadership in
promoting affordable homeownership opportunities in Massachusetts,"
said MassHousing Executive Director Thomas R. Gleason.