Help coming for Boston's future homebuyers
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Illustration: Maura Losch/Axios
Part of the Wu administration's $60 million investment in affordable housing options is available to locals now — or at least whenever mortgage rates start to dip again.
Catch up fast: The Wu administration announced in mid-November it's dedicating federal aid from the American Rescue Plan to fund the development of income-restricted housing on 150 parcels and to bolster existing homeownership assistance programs.
- About $14 million is going to fund several homeownership assistance programs the city offers for residents who meet income limits based on area median income (AMI) estimates.
Why it matters: Boston was already a notoriously costly market before low interest rates and the pandemic drove demand, and thus prices, to an all-time high.
- Today Boston's homeownership rate hovers around 35%, nearly half as much as the statewide rate.
- While homeownership is an uphill battle for most Bostonians, a larger share of white households (44%) tend to be homeowners compared to Black (31%), Asian or Pacific Islander (30%) and Latino (17%) households.
Here are the programs open to the public now:
The First-Time Homebuyer program offers first-time homebuyers money to help cover the down payment, as well as additional funds for closing costs, if applicable.
- Home buyers at 100% AMI or lower can get up to $50,000.
- Home buyers at 101%-135% AMI can get up to $35,000.
The ONE+Boston Homebuyer program offers fixed interest rates for a 30-year mortgage, as well as down payment and closing cost assistance, for residents earning up to 100% AMI.
- Residents with an AMI at 80% or below get 1% knocked off the average interest rate (it was 6.63% around Nov. 18).
- Those earning 81%-100% AMI get 0.5% off of the current average interest rate.
First-generation homebuyer program (STASH) offers a matching grant of $2,000 that a first-generation homebuyer can save for a down payment, and a matching grant of up to $5,000 for those who save $2,500.
- To qualify, eligible applicants must earn at least $45,000 a year but no more than 100% of the city AMI. They must also graduate from a qualifying first-time homebuyer course, per the website.
First Home Program, a new program created by the city and the Boston Housing Authority, offers up to $75,000 in down payment assistance to BHA tenants, including those receiving Section 8 vouchers.
- They can only use it on a home within city limits, according to a press release.
- Eligible homebuyers may also use their housing subsidy to cover monthly mortgage payments for up to 15 years under a separate program.
What's next: City officials plan to solicit proposals in January for the first 70 parcels.