Latest news with #Co-PurchasingHousingPilotProgram
Yahoo
29-05-2025
- Business
- Yahoo
If You're Dreaming of Homeownership, Boston Has a $50K Incentive For You - But There's A Catch
For many future homeowners, the American Dream is still just a dream. In recent years, a lack of inventory and high home prices have kept many would-be first-home buyers on the sidelines, waiting to seize the perfect opportunity. If you're still determined to get a piece of the American Dream, the city of Boston may have an ideal opportunity waiting for you. SIGN UP for the Dengarden / Parade Home & Garden newsletter for a weekly dose of our favorite house hacks, decor trends and shopping deals If you don't mind living with a few friends or relatives, there is a Boston Co-Purchasing Housing Pilot Program that recently launched that may help you purchase a home. This purchasing program offers up to $50,000 to help families purchase multi-family dwellings. According to Alexander Sturke, Director of Communications for the Mayor's Office of Housing, Boston's housing market has become increasingly inaccessible to many, particularly those from marginalized communities. This pilot program has been designed to help combat the housing crisis and help middle-income families have a pathway to affordable homeownership.A lack of inventory is one of the primary reasons single-family homes in Boston have become so expensive. As a result, multi-family homes have become a much more desirable option. They tend to be more affordable than single-family homes. Although multi-family homes in Boston are still relatively high compared to those nationwide, this new pilot program aims to offset some of the high costs associated with them. This program enables multiple individuals to pool their resources and live together. Those applying for the program must earn less than 135% of the area's median annual income and be first-time home buyers. The program applies to those purchasing homes in Boston neighborhoods, and each person must use the same approved lender. Each household can qualify for up to $50,000 in financial assistance. Other eligibility requirements apply. To learn more about this program, visit the Co-Purchasing Housing Pilot Program Eligibility Criteria on the City of Boston website. If You're Dreaming of Homeownership, Boston Has a $50K Incentive For You - But There's A Catch first appeared on Dengarden on May 28, 2025
Yahoo
21-05-2025
- Business
- Yahoo
Boston unveils new path to first-time homeownership
This story was originally published on Smart Cities Dive. To receive daily news and insights, subscribe to our free daily Smart Cities Dive newsletter. A Boston program is offering first-time homebuyers down payment assistance for co-purchasing arrangements in which multiple families purchase a two- or three-family home under a single mortgage. The Co-Purchasing Housing Pilot Program, which launched in March, offers as much as $50,000 in zero-percent interest-deferred loans to cover down payments or closing costs to eligible families of two earning roughly $176,000 in combined yearly income. The program allows families who have been priced out of Boston's expensive housing market to 'come together and combine the assistance and any other down payment resources that they saved to get into a multifamily property,' said Paige Roosa, director of Boston's Mayor's Housing Innovation Lab. The cost of buying a home in Boston is out of reach for many middle-income earners. According to Boston's Housing Innovation Lab, the price of a market-rate two-bedroom condo in the city in 2024 reached $790,000. Boston, like many cities and states throughout the U.S., has a first-time homebuyer assistance program to help make homeownership obtainable for middle-income earners. The city's new program provides up to $50,000 to households earning up to 100% of the area median income or up to $35,000 to households earning up to 135% of AMI, said Roosa. Households that earn a combined income of roughly $130,000 — about 100% of AMI — have a purchasing power of about $500,000, said Roosa. In 2024, only 12% of the homes in the Boston market sold for less than that amount, she said. To afford a home, some people have opted to go in on multifamily properties with other friends or family members, said Roosa. However, when two or three families are put on a single mortgage to buy a two- or three-decker home — a common type of housing in Boston — their combined income exceeds the income limit for the city's existing first-time homebuyer assistance program, Roosa said. That's an issue, given that a 2024 Boston Housing Innovation Lab survey found that 55% of people interested in co-purchasing a home said they did not have enough savings for the down payment and closing cost. But through the Co-Purchasing Housing Pilot Program, everyone on the mortgage is evaluated individually for eligibility, she said. Under the pilot program, each household included on the mortgage needs to be a primary resident of the home, said Roosa. Eligible households must also be considered a first-time homebuyer and have less than $100,000 in liquid assets (excluding government-sponsored retirement accounts). Like the city's normal first-time homebuyer assistance program, households earning up to 100% of AMI can receive up to $50,000, or up to $35,000 if they earn up to 135% of AMI. The program will not cover the entire down payment needed for two or three eligible households to buy a $1.2 million triple-decker home, but it will help, said Roosa. These types of co-purchasing arrangements can come with financial risks but also benefits such as sharing transportation and food costs and chore duties, she said. 'It ends up being a really cooperative and efficient and happier way of living,' she said. Recommended Reading Tariff concerns mean uncertainty for multifamily housing, industry economist says
Newsweek
14-05-2025
- Business
- Newsweek
Boston Offering $50K to Help People Buy Homes
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. A new program in Boston is offering families and friends coming together to buy a property up to $50,000 in financial assistance to purchase multifamily homes in the city. Under the Co-Purchasing Housing Pilot Program, launched last month, the Boston Home Center will provide zero-percent, interest-deferred loans to help cover the cost of down payments for these households, as well as reasonable closing costs for the purchase. Why It Matters The country is in the midst of a housing affordability crisis that has hit aspiring first-time homeowners the hardest. Home prices have risen all across the U.S. since the pandemic, and in Boston they are now nearly 80 percent higher than they were in February 2020. In February this year, the median sale price of a home in the city was $858,000, according to Redfin data—while only 30 years ago, in 1995, you could get a property in the Boston metropolitan area for about $165,000, Jonathan Shaw wrote for Harvard Magazine. With mortgage rates still hovering around the 7-percent mark and expected to remain above 6 percent through 2025 and 2026, the monthly carrying costs of buying a home remains unaffordable for many—especially younger generations approaching the property ladder for the first time. What To Know The Boston Home Center launched the pilot loan program in partnership with the Housing Innovation Lab to help multiple households coming together to buy multifamily homes in the city—a minority of the housing stock in both the country and Boston. According to data, there were 192 multifamily homes for sale in Boston in April, with a median list price of $1.65 million. That price tag was roughly $450,000 higher than in 2020, the company said, but still more affordable than single-family homes in the city. Eligible households earning up to 100 percent of the area median income (AMI) could receive up to $50,000 in financial assistance for their down payment, while households earning up to 135 percent AMI could get up to $35,000. An aerial general view of Boston on August 11, 2024. An aerial general view of Boston on August 11, 2024. Billie Weiss/BostonIn order to apply to the pilot program, households must be considered first-time homebuyers and they must contribute to at least 1.5 percent of the purchase price of their share of the property. They also need to occupy the property as their primary residence, have less than $100,000 in liquid assets (excluding government-sponsored retirement accounts), and enter into a co-ownership agreement with the other buyers. Participants do not have to be current Boston residents, as long as they are willing to buy a property within the city limits and move there within the first 60 days of closing the purchase. The properties eligible to the program must be two- or three-family homes within the city of Boston and have as many vacant, unoccupied units as participating households listed as joint owners of the mortgage. Those applying can get a fixed-rate CRA portfolio loan, a conventional loan from Fannie Mae or Freddie Mac, a Federal Housing Administration (FHA) loan, or any other mortgage approved by the Boston Home Center. Newsweek contacted the Housing Innovation Lab, Boston Home Center, and Mayor Michelle Wu's office for comment by email on Wednesday. What People Are Saying A guide released by Boston Mayor Michelle Wu's Housing Innovation Lab said: "Creating new homeownership opportunities is a key priority identified in Boston's 2025 Housing Strategy. As a first objective, the strategy seeks to broaden financial assistance for homebuyers and current homeowners, particularly for residents who identify as Black, Indigenous, and people of color." Wu said: "Boston's housing market has created significant barriers for middle-income families, particularly those from historically marginalized communities. Through the Co-Purchasing Pilot Program, we are creating opportunities for residents to pool their resources and build generational wealth together. This program represents one of many steps toward ensuring Boston remains a city where everyone can thrive." Jessica Ingram-Bee, a Boston-based real estate agent, told Boston Orange: "Many first-time buyers in Boston are financially ready to own, but face steep prices. This initiative offers a way to pool resources and increase buying power, making homeownership accessible to those who might otherwise be priced out." She added: "Beyond the financial benefits, it can also foster a sense of community—allowing friends, couples, and families to share responsibilities and create an affordable living arrangement. "I've heard successful co-buyers talk about babysitting for each other, sharing child care, and even coming together for weekly dinners. This model not only helps people afford a home, but also fosters a sense of community and mutual support. That is so needed in today's world." What Happens Next The program is currently accepting applications. For more information, visit the program's webpage. Are you a Boston resident trying to buy a home for the first time? I'd love to hear about your experience. Contact me at
