Massachusetts' Homeowner's Grants

Victims of storm and tornado activity may be eligible for a disaster relief grant.

The U.S. Department of Housing and Urban Development and the state of Massachusetts have set aside funding to provide low-income homeowners help to pay their mortgage and correct health and safety concerns on their property. The state also provides assistance to first-time home buyers to purchase a home through down payment assistance programs and reduced home prices. You must typically meet income limit level requirements to qualify for a grant, with exception to disaster assistance relief.

Disaster Assistance

On June 15, 2011 President Barack Obama declared Hampden and Worcester Counties disaster areas after residents were forced from their homes because of severe storms and tornadoes. Homeowners living in these counties can receive a relief grant for housing, and for making repairs to damaged property. Additional eligible uses of the funding include removing debris, reconstructing property that poses a threat to public safety, and emergency reconstruction of water, sewage, electrical and telephone facilities.

First-time Home Buyers Program

The state of Massachusetts' Department of Housing and Economic Development provides grants and low-cost loans to first-time home buyers. The department provides home buyers with access to affordable homes and down payment assistance. To qualify for these programs you must meet the income limit level requirements. The Soft Second Mortgage Program helps low-to-moderate income households obtain a fixed interest mortgage 1/2 percent below market rate. This makes the monthly mortgage payment more affordable. Some Soft Second borrowers can qualify for a subsidy that can cover up to 75 percent of the interest-only payment on the second mortgage. Private mortgage insurance is not required for this program.

Healthy Homes and Lead Hazard Control Grant Programs

In January 2011, HUD provided $7 million to the cities of Brockton, Lawrence and Somerville to reduce lead-based paint exposure in low-income households. Abatement, or permanent removal of lead hazards, includes removing, sealing, or enclosing lead-based paint with special materials. A certified lead abatement contractor must perform this work. Residents in these cities can contact the city department to find out how to apply for this program.

Emergency Homeowners' Loan Program

In June 2011, the U.S. Department of Housing and Urban Development and Neighborworks America partnered to provide funding to Massachusetts' homeowners facing foreclosure. More than $1 billion dollars was provided under the Dodd-Frank Wall Street Reform Act to implement the program. Homeowners who have faced a 15 percent decrease in income and are three months delinquent on their mortgage payment can apply for an emergency loan. Zero interest declining balance loans up to $50,000 are provided to low-to-moderate income households. No repayment is required on the loan for the first five years. After that, the balance of the loan declines 20 percent on an annual basis.

References

• U.S. Department of Housing and Urban Development: HUD and Neighborworks America Announce Emergency Homeowners' Loan Program
• U.S. Department of Housing and Urban Development: HUD Secretary Announces Disaster Assistance for Massachusets Storm Victims
• U.S. Department of Housing and Urban Development: HUD Awards $7M in Grants In Massachusets to Protect Thousands of Children From Lead and Other Home Hazards
• Mass.gov Housing and Economic Development: First Time Home Buyer (FTHB)