Thomas is a first-time homebuyer in Massachusetts who qualifies for a MassHousing mortgage loan. His real estate agent explains that MassHousing is Massachusetts's state housing finance agency. Which of the following best describes how a MassHousing mortgage loan is typically structured in Massachusetts?
Correct Answer
C) MassHousing originates loans through approved participating lenders and provides below-market interest rates and down payment assistance for eligible borrowers
MassHousing (Massachusetts Housing Finance Agency) is a quasi-public agency that provides affordable mortgage financing to low- and moderate-income Massachusetts homebuyers. MassHousing loans are originated through a network of approved participating lenders (banks and credit unions) and typically offer below-market interest rates, down payment assistance programs, and mortgage insurance options. MassHousing finances these programs through the sale of tax-exempt bonds, not state treasury funds.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Foreclosure is the legal process by which a lender takes possession of a property when a borrower fails to make mortgage payments. It allows the lender to sell the property to recover the outstanding debt.
The loan-to-value ratio (LTV) is the percentage of a property's appraised value or purchase price (whichever is lower) that is being financed through a mortgage. LTV = Loan Amount / Property Value.
A comparison of the major mortgage loan types—conventional, FHA, VA, and USDA—covering their eligibility requirements, down payment amounts, mortgage insurance rules, and best use cases.
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