1. MassHousing Mounzer Aylouche Relationship Manager

2. Who is MassHousing? MassHousing is the state's affordable housing bank
We lend money at competitive interest rates to support affordable home ownership opportunities for low- and moderate-income residents of Massachusetts
We partner with an extensive network of approved lenders to originate our mortgage programs

3. Who is MassHousing? Our loans are not just for first time homebuyers.
Existing homeowners can take advantage of MassHousing loan products to refinance into a more affordable mortgage or when they are buying their next home.
MassHousing is targeted to close more than 5,000 loans for a new record $1.2 Billion in fiscal year 2013.

4. Lending Basics COMPLIANCE Income Limits requirements
Owner Occupancy requirement
Ownership Interest in other real estate

5. Lending Basics CERDIT CAPACITY FICO Scores: 680 for 97% financing
Analyze your credit history
Need 3 trade lines active for at least 12 months
CAPACITY
Sources of income
Longevity of employment
Seasoning of employment
Ability to pay back debt: DTI%
Verification of employment
Verification of tax filing: 4506T, 3 years

6. Lending Basics CAPITAL COLLATERAL Sources of down payment:
Own funds, Gift, Gift of equity
Cash to Close:
Savings, checking, 401k, seller concessions
Reserves:
6 months mortgage payments needed for multi-family properties
COLLATERAL
Type of property purchased:
SF, Condo, Multi
Min 600 square feet
Deed restrictions? (40B)
In need of rehab?
Value?

7. MassHousing Mortgage

8. The MassHousing Mortgage
30 year fixed rate- No Loan Level/MI rate adjustments
97% financing-single family/condo (3% can be a gift)
95% financing - 2, 3 and 4 unit properties (3% can be a gift)
$125,415 max income (Essex, Middlesex, Suffolk counties)
Home buyer education-both On-Line and Face to Face options
Non-traditional credit accepted
MassHousing loan servicing

9. The Right Rate Mortgage
Up to 97% financing with no borrower cash required on one- unit homes including condos
Up to 95% financing available for two- to four unit homes.
Maximum income limits as high as $74,320 (varies by city or town and household size)
Purchase and Rehabilitation option for homes that might be in need of repair or improvements
Most community down payment and/or closing cost assistance programs allowed
Conventional appraisal guidelines
Non-traditional credit allowed

10. MassHousing Mortgage & Right Rate Mortgage with NO Mortgage Insurance (MI)
Same loan guidelines
No Rehab feature.
No non traditional credit
Interest rate slightly higher (0.25 – 0.50%)
LOAN DOES NOT REQUIRE MORTGAGE INSURANCE

11. Have a listing that needs work?

12. Purchase and Rehab Single family - 97% LTV 2-4 family - 95% LTV
One closing
30 year Fixed Rate
Licensed contractor to complete work
10% contingency
Up to 4 months PITI included in loan amount when doing gut rehab
Lender manages inspections
Up to 6 months to complete

14. Benefits of MIPlus
Unemployment insurance for up to six months PI of a maximum of $2,000 per month
Ten Year Benefit Term
Benefits Split Between Co-Borrowers (six months each for their pro-rata share of benefit)
Automatic Coverage after Six Months

15. 3rd Party Paid MIPlus with MassHousing Mortgages
Benefits of MIPlus
3rd Party Paid MIPlus with MassHousing Mortgages
Seller concession/Gift of 3% can pay full up-front cost of MI
Borrower will qualify without monthly MI payment increasing their borrowing power

16. “where opportunities reside”
“where opportunities reside”