Posted on June 1, 2020
BOSTON --- The MHP homeownership team is announcing changes to its guidelines regarding multifamily and landlord pre-purchase education for buyers using ONE Mortgage to purchase two- or three-family properties.
Effective June 1, all reservations to apply for ONE Mortgage financing to purchase a two- or three-family property, new two- and three-family will need to complete pre-purchase multifamily/landlord education or counseling prior to closing in one of two ways
For all households purchasing two- and three-family properties, at least one borrower per household must complete a pre-purchase multifamily/landlord education course with an agency certified by the Massachusetts Homeownership Collaborative. A current calendar of upcoming education courses can be found at www.chapa.org.
In lieu of a certified multifamily/landlord pre-purchase education course, borrowers may complete a one-on-one multifamily/landlord counseling session with an agency approve by MHP. A list of pre-purchase multifamily/landlord counseling providers will be available on the MHP website this week.
"This change is being implemented to help streamline the home buying process and deliver prospective first-time homebuyers and landlords the education they need to become successful multifamily homeowners," said Elliot Schmiedl, director of homeownership for MHP.
As part of this transition, changes have been made to eS2, the online system MHP's 40-plus lenders use to execute ONE Mortgage loans. Enhancements have been made to make it easier to gain reservation approval for two- and three-family loans. The new multifamily/landlord pre-purchase education and counseling requirements will need to be completed prior to closing.
As always, please contact the homeownership team if you have any questions. You can view the updated Program Guidelines here.