Massachusetts ""Gov. Deval Patrick"":http://www.mass.gov unveiled a ""statewide program"":https://www.masshousing.com/portal/server.ptxmode=2&uuID={E97F7241-F9D4-4917-8ABD-C526D73DB5CE} last week that will allow first-time homebuyers to get an advance on the $8,000 federal tax credit to use toward downpayments and closing costs.
According to ""Sen. John Kerry"":http://kerry.senate.gov (D-Massachusetts), the initiative will make it possible for thousands of potential homebuyers to purchase homes in the state - a market where housing inventories have swelled due to growing numbers of distressed properties and foreclosures.
The tax credit loans from the state will be issued for first-time, residence purchases made before December 1, 2009 and financed through ""MassHousing"":http://www.masshousing.com . MassHousing maintains a long list of more than 160 ""approved lenders"":https://www.masshousing.com/portal/server.ptxopen=514&objID=315&parentname=CommunityPage&parentid=8&mode=2&in_hi_userid=2&cached=true, including all of the nation’s major banks. The $8,000 advance loans are interest-free if repaid by June 1, 2010, after first-time homebuyers receive their tax credit from the federal government.
MassHousing Executive Director Thomas R. Gleason, said, ""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.""
MassHousing’s home loans are fixed-rate and include ""MassHousing’s MI Plus"":https://www.masshousing.com/portal/server.ptxopen=514&objID=288&parentname=CommunityPage&parentid=10&mode=2&in_hi_userid=2&cached=true mortgage insurance, which will help pay the borrower’s monthly principal and interest payments for up to six months in the event of a job loss.
""Sen. Edward Kennedy"":http://kennedy.senate.gov (D-Massachusetts) called Gov. Patrick’s plan ""a vital step in stimulating the local economy more quickly and reversing the negative impact of foreclosures on communities.""
A new report from the Boston-based real estate research firm the ""Warren Group"":http://www.thewarrengroup.com shows that petitions to foreclose on Massachusetts homes continue to rise. The group said records of this first step in the state’s foreclosure process increased 5.6 percent during the first six months of 2009, compared to the same period last year. Foreclosure petitions filed during the month of June along were close to the historically high levels seen in the state in the early part of 2008, the Warren Group said.
""Congresswoman Niki Tsongas"":http://tsongas.house.gov/ (D-Massachusetts), said, ""By making the first time homebuyer tax credit more accessible to families that need the credit upfront, the Patrick-Murray administration is creating additional resources for first time homebuyers in Massachusetts. This innovative approach will provide further incentive to those considering purchasing a home in our communities.""