If you’re a first time home buyer, many of the homes you’re looking at probably need some work.  What happens if you don’t have the cash to make those repairs?  You may have heard that banks haven’t been financing the costs of renovations, as they may have done in the past.  There are programs available such as a 203k but other than that, there are were not many options….until now! 

Rick Scherer, Area Sales Manager at The Bank of Canton provided me with the following information regarding MassHousing‘s new Purchase & Rehabilitation Program.  

If you are a first-time home buyer and looking to purchase a home in need of repair, MassHousing’s Purchase and Rehabilitation loan might be just the program for you.  Mortgages covering the purchase price of the home plus necessary rehabilitation costs are available through MassHousing-approved Rehabilitation Lenders.  A Purchase and Rehabilitation loan is a terrific product to improve the basic livability of a property and to make a house your home.

• The Purchase and Rehabilitation Program can assist with most repairs that will improve the basic liveability, safety and utility of a property.
• All code violations must be repaired.
• Available on one-to-four family properties.
• The Purchase and Rehabilitation option carries the same interest rate and point structure as a MassHousing mortgage.
• Maximum loan amount may not exceed 97% of the lesser of the sales price plus rehabilitation cost or the estimated appraised value after rehabilitation.
• Minimum rehabilitation amount is $7,500 for all property types.
• Rehabilitation costs include the amount required to pay for the repairs, as well as other allowable expenses:  Title update fees, and required contingency reserve equal to 10% of the total rehabilitation cost.
• The lender or Local Rehabilitation Agency (LRA) may charge a fee of $1,500 based on the cost of the rehabilitation.
• Licensed contractors must complete all rehabilitation work.
• At the time of the loan closing, the borrower will be responsible for the full mortgage payment on the total principal amount.

This is an excellent program and I encourage First Time Home Buyers to reach out to Rick directly with any questions or to obtain a preapproval.  Rick can be reached at rscherer@thebankofcanton.com or at 617-778-0024

As always, if you’re in the market for a home or thinking about selling your home, I can be reached on my cell at 617-276-5247 or via email at Nikki.Devaux@SothebysRealty.com   I service primarily the MetroWest Massachusetts region, but I am fortunate to work with an amazing group of agents throughout the state of Massachusetss and even throughout the country and the world!  I pride myself in recommending agents that offer the same level of service as I do. 

Happy Spring!!! ~Nikki