One of the biggest obstacles people face purchasing a new home is the down payment. It’s not that people can’t save, it’s the amount they need to save to buy a home here in Eastern Massachusetts. Prices are high, and therefore the down payments tend to be higher because down payments are a percentage of the home price.
Most people think that you need 20% to purchase a home, but that couldn’t be furthest from the truth. In fact, most mortgages require as little as a 3-3.5% down payment. The more you put down, the better the terms. 5% is better than 3%, 10% is better than 5%, and so on. So that’s why you hear about 20% down being required, because that’s when it’s the best terms. However, if everyone waited for 20% down, we would not have over 60% of the population homeowners. It’s just not realistic.
What I want to share is that we at CrossCountry Mortgage on Main Street in Gloucester has a few programs that offer no money down mortgages! It’s usually a combo of a first and second mortgage. The first mortgage being the mortgage after down payment, and the second mortgage being the down payment amount. In Gloucester (and some North Shore cities and towns), the City has down payment assistance but the income limits are fairly low. Therefore they are not easy to get. That means a couple who want to buy a home with down payment assistance from Gloucester cannot make more $64,900 combined. For Masshousing, Fannie Mae and Freddie Mac loans, the income expands to just under $108k. This is for anyone on the loan….so if a couple combined makes more than $108k, then one person can go on the loan if they qualify by themselves.
The great news is that here at CrossCountry Mortgage on Main Street in Gloucester we have all of these programs! We can do the state Masshousing mortgage, the national programs through Fannie Mae and Freddie Mac and of course, the City of Gloucester grant.
Below is an example of a condo for sale in Gloucester under $300k that qualifies for down payment assistance.
Contact me today for a no hassle and free consultation to see if you qualify!
Brandon Pratt- CrossCountry Mortgage
NMLS 46922- firstname.lastname@example.org