Massachusetts FHA or Mass Housing loans and fees included

3 Replies

Hi everyone. I'm looking into what is in my market for housing, and quite frankly it's quite expensive. I know the markets well from areas such as Medford/Malden to Waltham/Watertown where i live now. I set a goal to purchase a property sometime next year after January.

I'd like to make an entrance with my wife using either the FHA loan or the MA housing loan. I'm leaning towards a 3-4 unit building with 2br/1b nearby a university. My question is, is it worth entering in this market? The 4 unit buildings range from 500k-1million, I'm staying around the 500k mark however.

I will buy separately under my name, and in the future we will buy another property under my wife's name. 

Also what fees should i be aware of? Is it worth getting a real estate license and using myself as an agent? I know of the 3.5-5% down, and that the PMI won't come off unless I refi. For the other loan however apparently i can get rid of the insurance after 5 years.

What other fees should i be aware of? Anyone with FHA experience can chime in?

Thank you

Is it worth entering into this market where the cost is so high? The rents range anywhere from 1000-1300 for 1 br, 2 br would be closer to 1600-1800

Hi Ruslan,

If you can qualify for a Mass housing they do have a option with no MI. The current rate is around 4.3-4.4.

The best part about the Mass Housing loan with no MI is you're only looking at $5000 in closing costs in your range.

The mass housing loan with MI requires about $9-10000 but gets you a lower interest rate. 

*disclaimer: always varies, this what I have seen with my buyers.

As are is if it's worth it or not,  that's an interesting question.

The big plus is in our area,  vacancy rates are very low. 

4- 1 bed units at 1000/month with you and your wife in one of the units should enable you to live "free" or close to it which is certainly respectable .


Free eBook from BiggerPockets!

Ultimate Beginner's Guide Book Cover

Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!

  • Actionable advice for getting started,
  • Discover the 10 Most Lucrative Real Estate Niches,
  • Learn how to get started with or without money,
  • Explore Real-Life Strategies for Building Wealth,
  • And a LOT more.

Lock We hate spam just as much as you

Join the Largest Real Estate Investing Community

Basic membership is free, forever.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.