If you’re looking to buy a three-family home in Massachusetts, you may be eligible for the MassDREAMS grant. This grant can provide up to $20,000 towards your down payment and closing costs, making it easier to become a homeowner.
In Fall River, there is a fantastic first-time buyer grant program. We discovered four distinct methods for utilizing this grant to acquire a three-family home. The lower interest rate on a loan might prevent you from receiving the grant, so let’s examine it further. When buying a multi-family home, the bank will use the rental income towards your income, which will be used towards the grant. To get a lower interest rate on a loan, the lender may require you to have a higher rental income. This is called qualification. However, some loans do not have this requirement. So if your rental income is lower, you can still get one of these loans. The average price for a three-family home in Fall River in the last three months was $520,000.
If you meet the requirements for the grant, you will likely qualify for a mortgage. However, there are still some other things to consider. For instance, you may need to be at the lower end of the average, but this is not always a bad thing. This will allow you to add equity to your property and update it. Another thing you need to remember is that you will need cash reserves. The grant gives you money for the down payment and closing costs but depending on your loan, you may need more money saved up.
You’ll need cash reserves if you’re hoping to purchase a home. You can get the money for your reserves differently, so start exploring your options today. You can use 401ks or other investments, but you must have some money saved up. Another thing you need to do is make sure you have some skin in the game. This means you need to put some of your own money into purchasing the house. For a lender to be sure you are serious about buying a home, they want you to bring at least 3% of the purchase price.
If you put down 10% for a down payment, they’ll give you 5% for a down payment and 5% for closing costs, so if you contribute 3%, they’ll assist with the rest. But considering the five percent down payment, the three percent you’re contributing, and the eight percentage points you’ve already paid off—you own almost one-third of the property—this is an excellent spot to be in. This position gives you an advantage when trying to conquer or profit from the system- giving you more assets.
The MassDREAMS grant can help you buy a three-family home in Massachusetts. There are some things to consider before applying for the grant, but if you research and plan, you could end up in a great position as a homeowner. Talk to a lender about your options and save up for your down payment and closing costs today.