Housing Assistance Corporation Blog

Making Homeownership Attainable

Posted by Chris Kazarian on Tue, Jun 28, 2016 @ 11:59 AM
Homeownership_Conference.jpgElliot Schmiedl of MHP talks about his agency's ONE Mortgage Program that makes homeownership more attainable for those in Massachusetts. 

When it comes to housing on Cape Cod, it’s not just about affordability. It’s also about attainability.

That concept took center stage during the Cape Cod and Islands Homeownership Collaborative held at HAC last month. Featuring representatives from HAC, MassHousing, Massachusetts Housing Partnership (MHP) and the United States Department of Agriculture, the workshop allowed local lenders to learn about the mortgage programs available to residents to ensure housing is both affordable and attainable.

The session began with HAC’s Karin Bar highlighting changes to Barnstable County’s HOME Program which she administers for the agency. Available to those that make 80 percent of the Area Median Income (AMI) for Barnstable County, the program provides closing cost and down payment assistance for first-time homebuyers. That assistance has increased from a maximum of $10,000 to $20,000 awarded to recipients based on need that comes in the form of a zero payment, zero interest loan that is paid back upon sale of the property.
“I’ve had the pleasure of helping 22 households since I took over the program a couple of years ago,” Bar told those in attendance. “This is a great program and I’m very excited about it. And I’m very happy we’re all here today so we can make homeownership more attainable.”

Over a two-hour period, lenders had a chance to learn about MassHousing’s lending opportunities. “We are no longer just a lender for first-time homebuyers, but a lender for repeat buyers for someone who may have owned in the past and is looking to own again,” said MassHousing business development officer Maureen Moriarty. “With Massachusetts being a high cost area, we see a lot of people struggle to get into a second home.”

Keeping People in Their Homes
Moriarty was joined by her colleague Goretti Joaquim who provided information on her agency’s mortgage insurance program known as MI Plus which provides up to $2,000 per month that goes to cover mortgage payments for borrowers who may have lost their job. Since 2004, she said MI Plus has assisted nearly 1,000 such people, keeping over 850 of them in their homes. “Our mission is to keep people in their homes and people intact which is huge,” she said.

Homeownership_Conference_2.jpgMassHousing's Goretti Joaquim talks to local lenders abou her agency's mortgage insurance program.

At MHP, the ONE Mortgage Program has provided 19,000 loans to income-eligible residents in Massachusetts since 1991. The program, which is only open to first-time homebuyers, reduces the down payment required to purchase a home while providing the borrower with a fixed interest rate over 30 years. Some borrowers may even qualify for a one-time subsidy spread out over the first seven years of owning their home.

MHP’s Elliot Schmiedl said loans his agency provides can reduce a monthly income payment by nearly $450 for a low-income borrower and just over $300 for a moderate-income borrower, making homeownership that much more of a possibility. “It is so difficult for low to moderate income borrowers to even get into the market,” he said. “Not much is affordable anymore.”

The workshop ended with USDA’s Michael Rendulic who highlighted his department’s services which includes financing roughly $21 billion in housing projects throughout the country. Of that, he said $223 million went to rural areas of Massachusetts which includes every town on Cape Cod except the town of Barnstable.

The USDA’s housing programs include rental assistance for elderly and low-income residents; direct loans; and funding repairs for income-eligible homeowners.

To learn more about Barnstable County's HOME Program contact HAC's Karin Bar at kbar@haconcapecod.org or at 508-771-5400, ext. 289. 

Tags: Affordable Housing on Cape Cod, affordable housing, homeownership, MassHousing, Karin Bar, Barnstable County HOME Program, Massachusetts Housing Partnership