Allston Brighton CDC’s Homebuying 101 classes are designed to help first-time homebuyers build knowledge and confidence for a successful homebuying journey. All class participants learn about the various real estate professionals involved throughout the homebuying journey, including their roles in the purchase process, working with a real estate agent, having a home inspection, and information about working with an attorney. We provide information during every certificate class series about the financial resources available to income-eligible first-time homebuyers, including mortgage products for low-to-moderate income (LMI) borrowers, and information about financial assistance available through various municipalities, nonprofits, and lenders.

HB 101 graduates also receive access to unlimited one-on-one counseling services with a HUD-certified housing counselor. Clients develop a better understanding of their credit score and history; co-create a monthly household budget to increase savings, discuss strategies to decrease debt, co-create an action plan, and more!

Graduates of Homebuying 101 also receive a certificate that grants access to down payment assistance, Mass Housing Partnership’s ONE Mortgage, MassHousing mortgages, HUD mortgages, homeownership lotteries, and lender first-time homebuyer mortgages. The certificate is accepted statewide for first-time homebuyer education and is valid for 3 years!

Register for one of our upcoming Homebuying 101 classes today: https://allstonbrightoncdc.org/first-time-homebuyer-services/

Choosing whether to pursue homeownership can be difficult because there’s no “one size fits all” approach to buying a home. Suppose you are prepared to reside in one place for a minimum of 3-4years. In that case, you are ready to accept the responsibility of maintaining a property, and part of your long-term investment strategy includes owning a home. You are likely a good candidate for buying.

If you aren’t sure if you are ready to purchase your first home, you can register for ABCDC’s free Homebuying 100 class to assess your readiness and better understand the financial responsibilities of homeownership: https://allstonbrightoncdc.org/homebuying-100/

• Wealth building: According to a 2024 report from the Aspen Institute, the median net worth for an American homeowner is $400,000, while the median net worth of a renter is $10,400. Owning a home is a sort of “forced savings plan,” where your monthly principal and interest pays for an asset that will often increase in value over time. When it comes time to sell, many homeowners make a profit because their homes are worth more than it was when they bought it. This stands in contrast to renting, in which your monthly rent payment usually helps build your landlord’s equity in wealth through the property.
• Social benefits: Many studies have linked communities with higher homeownership rates to improved educational outcomes, community engagement, and even physical and mental health.
• Stability: Purchasing a home allows individuals and families to have more stability in both their location and housing costs. Renters move at a rate of roughly five times more than homeowners, which allows owners to more easily embed themselves and feel invested in their communities. Also, unlike renting, where costs often increase year by year, a fixed-rate mortgage will not increase. While property taxes and insurance costs may increase, your housing costs relative to your income may decrease over time.

• Less flexibility: Flexibility, in terms of being able to move to a different home or geographic location, greatly reduces when you become a homeowner. Because there are costs associated with buying a home that are separate from the cost of the home itself, it is not practical to move frequently while owning. Therefore, it is advisable to only purchase if you are in a situation where you can trade some of the flexibility of moving quickly. Freddie Mac recommends that you plan to live in a purchased home for at least 5 years.
• Higher level of responsibility: As a homeowner, you will be accountable for maintaining your home in the condition required by your local municipality or your condo/homeowner’s association. Houses don’t take care of themselves: they require a significant (in terms of cost and time)investment of cost and time from the owner to be maintained well and increase in value over time.
• Higher upfront cost: Unlike renting, a buyer must be prepared to spend a 1.5% to 20% downpayment relative to the purchase price of the home to become a homeowner. Closing costs include the lender’s fees, attorney’s fees, title insurance, as well as prepaid and escrowed homeowners’ insurance and taxes. If you were to buy your home and then sell it without allowing enough time to build significant equity, it is possible that you will not make any money in the transaction and, at worst, you could lose money.

When purchasing your first home, be sure to surround yourself with the right team of real estate professionals to help you reach your goal of homeownership.  As a first-time homebuyer, make it known early in the process that this is your purchase, and that you expect the professionals that you have hired to treat you with the respect and responsiveness that you deserve.

When it comes down to choosing a realtor, a loan officer, or a real estate attorney, have conversations early in the process to determine who best fits your goals.  Make it a point to interview candidates for these important positions on your team early in your home purchase process.  In doing so, you will have a much better chance of hiring the right people.  The interviews should include questions about the costs, realistic timelines for your purchase, and the services they offer.

Remember – you should always feel in control of your transaction.  Even if there are bumps along the way, you’ll be in a much better position to handle them if you are in the driver’s seat.  The best professionals in real estate will always make sure you get the information and responsiveness you need to stay in control of your purchase.  If you surround yourself with a team that works to keep you informed and in control, you will achieve your goal of homeownership.

Check out Allston Brighton CDC’s directory of resources to help build your team: https://allstonbrightoncdc.org/directory/

There are countless downpayment options available to income-eligible Massachusetts residents. If you want more in-depth information about all of the options available, please register for one of our free Homebuying 102 classes. 

• STASH Program
  • Matched savings program for first-generation homebuyers
  • Focused on financial literacy and education
  • Credit and savings requirements
• Allston Brighton Homeownership Program
  • Down payment and closing cost assistance program
  • Up to $50,000 per household, depending on need
  • For the purchase of any property type in 02134 or 02135
  • Interest-free, deferred loan that becomes due when the buyer sells, transfers, refinances, or moves out of the property
  • Administered by the Boston Home Center and adheres to the same guidelines as their traditional Financial Assistance Program (FAP)
• One Mortgage
  • Mortgage program with low, fixed interest rate (as little as 3% down)
  • Limited to first-time home buyers (FTHB) to purchase anywhere in the state of Massachusetts (MA)
  • Income, assets, and credit limits
• One+
  • Mortgage program that builds off ONE Mortgage program and adds a permanent interest-rate discount, downpayment, and closing cost assistance
  • Limited to FTHB who live in one of the 29 Gateway Cities, but recipients can buy anywhere in MA
  • Income, assets, and credit limits
• One+ Boston
  • Requirement to be a current resident of the City of Boston and be purchasing within the City of Boston.
  • Income, assets, and credit limits

It’s important to be familiar with the pieces of a mortgage payment before you have the responsibility of paying one. The acronym PITI outlines the pieces of a mortgage payment: Principal, Interest, Taxes, and Insurance.

• Principal – Part of your mortgage that goes towards repayment of the amount borrowed to finance the purchase.
• Interest – Amount the lender charges for lending the money
• Taxes – The part of the mortgage that is collected to pay for the residential taxes assessed to the property
• Insurance – The part of the mortgage that is collected to pay towards the annual homeowner’s insurance premium

Some people may have an additional insurance to pay for as part of their mortgage and it is called Mortgage Insurance or Private Mortgage Insurance (PMI).

Mortgage Insurance – a monthly insurance premium that the buyer pays for to protect the lender in case the buyer defaults on the loan before they have reached 20% equity. It is a tool that allows a buyer to purchase a home without needing a full 20% down payment.

For those buying a condo, there will be an additional piece to your monthly payment, the association fee.

Association Fee – a monthly payment to the condo association that manages the operations and maintenance of your condo building

If the buyer utilized a second mortgage for assistance with their down payment or closing costs, and the second mortgage has an interest rate greater than zero, there will likely be another piece to their mortgage, the second mortgage principal and interest.

Second Mortgage Principal and Interest – repayment of the down payment assistance loan

Principal + Interest + Taxes + Insurance + (Mortgage Insurance/PMI) + (Association Fee) + (Second Mortgage Principal and Interest) = Mortgage Payment

• Sign up for the Boston Home Center’s Metrolist
• Check out the My Mass Home website for a list of affordable and accessible homeownership options
• Check in with your town or municipality’s housing development or planning office

Yes- there are many resources available for new and current homeowners, including loans to remove lead paint, foreclosure prevention programs, and more!

• MassHousing
  • Provides support to homeowners looking to refinance, remove dangerous lead paint, make improvements to their homes, or help homeowners upgrade a failing septic system.
• Urban Edge
  • Offers one-on-one foreclosure prevention counseling by analyzing household budgets and reviewing options including forbearance, loan modifications, short sales, and buy-backs.
• Boston Home Center
  • Offers support to Boston residents related to foreclosure prevention, home repairs, and energy efficiency upgrades.
• HomeSafe Post-Purchase Workshops
  • Homeowners can register for workshops to learn more about how to navigate home repairs, refinancing, and more.
• Mass Save
  • Provides low-cost energy-saving programs for Massachusetts homeowners