BOSTON – Four credit unions have joined the Massachusetts Housing Authority’s first-time homebuyer program that will provide low- and moderate- income borrowers interest-free loans of up to $8,000 for downpayments and closing costs.
Under the Tax Credit Loan Program individuals will be able to borrow up to $8,000 against next year’s federal income taxes interest-free, according to Eric Gedstad, a spokesman for the program. If the loan is not repaid by June 1, 2010, it will be amortized at the same rate as the mortgage.
The mortgages must be originated through one of the approved lenders and MassHousing will buy the loans, he said.
"We now have 20 lenders who are trained and ready to go originate these loans," Gedstad told The Credit Union Journal yesterday.
The tax-credit loans are aimed at low- and moderate-income families, meaning an annual income of around $67,000 in Massachusetts.
The participants include: Greater Springfield CU, Holyoke CU, Metro CU and St. Anne’s CU.
