Hometown Mortgage offers homebuyer grant programs
Available to low-income homebuyers across southern New England.
Hometown Mortgage, a division of bankESB, recently announced that four homeownership assistance programs will soon be available to lower-income homebuyers across Massachusetts and neighboring states.
Hometown Mortgage has set aside $250,000 for a new Special Purpose Credit grant program, available to borrowers purchasing homes in select areas of Springfield. Grants of up to $10,000 per eligible borrower will be available starting April 1. This grant can be combined with the bank’s affordable loan product or another conventional first mortgage loan offered by bankESB. Borrowers must be at or below 150% of the area’s median income to be eligible.
In addition, Hometown Mortgage has been selected to participate in three grant programs funded by FHLBank Boston. The Equity Builder Program provides grants of up to $30,806 to income-eligible, first-time homebuyers to help with down payment or closing costs or to supplement rehabilitation costs associated with the purchase. The Housing Our Workforce Program provides grants of up to $25,000 or 10% of the home’s sale price, whichever is less, toward down payment or closing costs. Funds will be available starting April 1.
The FHLBank Boston Lift Up Homeownership Program provides grants of up to $50,000 toward down payment or closing costs for people of color purchasing their first home. This program will begin on May 15.
Note that the Special Purpose Credit grant may be awarded in combination with any one of the three FHLBank Boston program grants to borrowers who qualify.
In 2023, Hometown Mortgage borrowers received more than $500,000 in grants from the Equity Builder and Housing Our Workforce programs alone. For 2024, Hometown Mortgage hopes to raise that amount across all four grant programs to more than $1 million.
For all programs, applications are submitted and grants are awarded on a first-come, first-served basis for as long as funds remain available. Only owner-occupied units intended to be used as the homebuyer’s primary residence are eligible for funding. Eligible units include one- to four-family properties, townhouses, and condominiums. Income restrictions apply. For all FHLBank Boston programs, homebuyer counseling courses through an approved agency are required.
Other requirements and restrictions may apply. For more information and to determine eligibility, contact a Hometown Mortgage loan officer at 855.230.3939 or or by clicking here.
