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The purchase of your first home is a significant financial decision, one that requires a careful analysis of the total cost of home ownership. One aspect of the total cost of owning a home is the loan costs, which will impact the total cost of homeownership for years after the closing date. Fortunately, Massachusetts first-time homebuyers have several mortgage programs to consider.The home buyer programs vary by whether there are income limits, loan limits, low down payment options, financial assistance opportunities, down payment assistance, and mortgage insurance requirements or a combination of these factors. Many of these mortgage programs are tailored to help first-time homebuyers overcome common obstacles to obtaining a home loan, such as down payment, closing costs, credit score requirements, and interest rates.The eligibility requirements and rules for the different programs may seem overwhelming to a borrower new to the Massachusetts home-buying process; however, first-time homebuyers should take the time to investigate these mortgage programs with an experienced loan officer and real estate buyer agent to see whether they can reduce the total cost of home ownership. There is more to consider other than interest rates alone, and not every borrower will qualify for every mortgage program.MassHousing First-time Home Buyer ProgramsMassHousing supports affordable homeownership for Massachusetts residents with modest incomes. Although all MassHousing homebuyer programs have income limits, many home buyers are surprised by how much income they can earn and still qualify.An act of the Massachusetts Legislature created MassHousing in 1966 as an independent public authority, and MassHousing made its first loan in 1970. It is a self-sustaining agency, and it does not use taxpayer dollars in its programs.MassHousing has several mortgage programs, which have different features, eligibility requirements and benefits to borrowers seeking their first home loan. Borrowers must complete an approved first-time homebuyer class (also referred to as homebuyer counseling) before closing on the loan; however, in many cases it makes sense to attend a free first-time homebuyer workshop to learn about the entire process before choosing a lender, committing to a buyer agent, or looking at homes. Homebuyers should wait until they know precisely which loan program they intend to use before paying for a home-buying class. For many first-time homebuyers, a free home-buying workshop is a good way to start the home-buying process. Borrowers also are required to participate in landlord counseling before the purchase of two-to-four unit properties.MassHousing works with community banks, credit unions, and mortgage companies. Not all lenders can provide MassHousing loan products, but many lending institutions throughout Massachusetts offer MassHousing mortgages.MassHousing MortgageMore than 50,000 families have used a simple, straightforward MassHousing mortgage to buy their first home. MassHousing home loans have a variety of benefits for first-time homebuyers that are not available with most other loan programs, and MassHousing allows for maximum income limits as high as $145,530 (as of July 25, 2018). The income limits vary by county. The maximum income limit ($145,530) is available in Essex, Middlesex, Norfolk, Plymouth, and Suffolk counties. The income limit in Worcester County is $115,830, $116,370 in Barnstable County, and $108,810 in Bristol County.There are also mortgage loan limits based on the type of property a home buyer purchases. For single-family homes and condominiums, the maximum loan amount is $484,350 and $620,200 for a two-unit property. A loan of up to $749,650 is available for a three-unit home and $931,600 for a four-unit property. Properties must have a minimum of 600 square feet.MassHousing Mortgage loans, which have competitive interest rates and fixed-rate terms, allow for 97 percent financing without any of your cash required for the down payment on single-family homes and condominiums. In other words, the 3 percent down payment can be a gift from someone else, making it possible to buy a house or condo without substantial savings of your own. Rate locks of 30 to 75 days are available, as well as non-traditional credit considerations, such as limited credit history. Homebuyers must still meet a lender's underwriting requirements.A MassHousing Mortgage loan features MI Plus, which is mortgage insurance that helps a homeowner pay their mortgage, up to $2,000 per month, in case of a job loss for up to six months. There isn't any added cost for MI Plus protection. MassHousing has helped more than 1,000 homeowners pay their mortgage during a period of unemployment. A borrower can use the benefit any six months during the first 10 years of the mortgage, but a borrower is not eligible until six months after the closing.Mortgage insurance typically is required of borrowers that do not have 20 percent to put down as a down payment. It protects the lender in the event of a borrower foreclosure.MassHousing mortgage insurance may be less expensive on a monthly basis – without any up-front fees – than other loan programs, such as FHA loans (see below). Borrowers who earn less than or equal to the area median income are eligible for discounted mortgage insurance premiums.Borrowers can pay mortgage insurance premiums in an upfront, single premium or in a monthly premium. Single premiums may be paid by the lender, a family member, employers, municipalities, non-profits or the borrower. Single premiums not paid by the lender are refundable under a particular MassHousing refund schedule. Monthly premiums are not refundable.MassHousing mortgage interest rates may change daily, so consumers should contact a participating lender for the latest interest rate and terms.MassHousing Mortgage 100 (Down Payment Assistance)First-time homebuyers earning less than 100 percent of the average median income may qualify for the MassHousing Down Payment Assistance program, also referred to as the MassHousing Mortgage 100 program, which provides 3 percent down payment assistance up to $12,000 for single-family homes, condominiums, and planned unit developments. Multi-unit properties are not eligible for down payment assistance for MassHousing Mortgages.MassHousing provides down payment assistance in the form of a 15-year, fixed-rate 1 percent interest rate loan, which becomes due in the event of the sale or refinancing of the property before the end of the 15-year term. With a MassHousing Mortgage that only requires a 3 percent down payment, a homebuyer would not need any money to put down at closing. A borrower would still need money for closing costs; however, depending on how an offer is structured the homebuyer could receive a credit at closing to cover closing costs.To receive the full benefit of the down payment assistance program, homebuyers need a minimum credit score of 680. Borrowers with a credit score of 660 to 679 still qualify but would need a 5 percent down payment. With the 3 percent down payment assistance, the homebuyer would need to put down at closing the remaining 2 percent required.Homebuyers can earn up to $107,800 in Suffolk, Essex, Middlesex, Norfolk, and Middlesex counties and still qualify for down payment assistance. Borrowers income is limited to $80,600 in Bristol County, $85,800 in Worcester County, and $86,200 in Barnstable County.MassHousing Mortgage 100 borrowers are eligible for discounted mortgage insurance premiums.Borrowers do not have to be first-time homebuyers if they are purchasing a home in Boston, Cambridge, Chelsea, Everett, Fall River, Lawrence, Lynn, North Adams, or Somerville. First-time homebuyers must complete an approved homebuyer class before closing.Operation Welcome HomeOperation Welcome Home provides affordable mortgage financing, as well as closing cost and down payment assistance, to help members of the Reserves and National Guard, active-duty military, veterans, and Gold Star Families purchase a home in Massachusetts.MassHousing launched Operation Welcome Home in November 2015, and it has since made various modifications to the loan program, which has flexible underwriting standards, a fixed interest rate, and is serviced by MassHousing.Borrowers must be first-time homebuyers, unless the buyer purchases a property in Boston, Chelsea, Cambridge, Everett, Fall River, Lawrence, Lynn, North Adams, and Somerville. First-time homebuyers must complete an approved homebuyer class before closing. Borrowers also must participate in landlord counseling for the purchase of two-, three-, and four-family homes.Operation Welcome Homes has conventional loan limits up to $484,350 for a one-unit property. The program caps loan limits for two-family homes at $620,200 three-family homes at $749,650, and four-unit properties at $931,600.Borrower income limits are as high as $145,530 in many cities and towns, including Suffolk, Essex, Middlesex, Norfolk, and Plymouth counties; however, the income limits in Worcester ($115,830), Bristol ($108,810), and Barnstable ($116,370) counties are less. Operation Welcome Home allows non-spouse co-borrowers.Operation Welcome Home borrowers also can qualify for MassHousing down payment assistance for up to 3 percent of the purchase price or $12,000, whichever is less. The down payment assistance is a 15-year loan at a 1 percent interest rate. Repayment of the loan is also due upon sale or refinancing of the property before the end of the 15-year note. Unlike regular MassHousing Mortgages, Operation Welcome Home borrowers can receive down payment assistance on multi-unit dwellings.Besides coming up with money for a down payment, many first-time homebuyers struggle to save additional money for closing costs. Operation Welcome Home borrowers can take advantage of a closing cost credit for up to $2,500. The closing cost credit is in addition to MassHousing's Down Payment Assistance.MassHousing offers several mortgage insurance options for Operation Welcome Home loans. MIPlus Mortgage Payment Protection helps repay your loan in case of unemployment. The benefit will cover a borrower’s principal and interest payments up to $2,000 for up to six months. For a member of the Reserves or National Guard, activation or deployment overseas will make them eligible for the unemployment benefit as well. There also are discounted premiums available to qualified borrowers, as well as monthly and one-time premiums available.If you are buying a home in need of repairs, an Operation Welcome Home loan may be used to finance the purchase and the rehabilitation or repair of the purchased property.The primary goal of the program is to make it easier for Massachusetts veterans to obtain a loan with mostly the same features and benefits of a VA Loan. For example, the Operation Welcome Home program will make it easier to purchase a unit in a small condo development. Buying a condominium with a VA loan can be more challenging than with other property types.MassHousing Purchase and Rehabilitation LoanIf you are looking to purchase a Massachusetts home in need of major repair, the MassHousing Purchase and Rehabilitation loan program is an option for first-time home buyers. The mortgage will cover the purchase price of the home, as well as necessary rehabilitation costs. The program is available for one- to four-family houses, but not condominiums.The Purchase and Rehabilitation loan option has the same interest rate structure as the MassHousing Mortgage. The maximum loan amount may not exceed 97 percent of the lesser of the sales price, plus the rehabilitation costs, or the estimated appraised value after the rehabilitation.The minimum rehabilitation cost for all property types is $7,500, and all rehabilitation work must be completed by licensed contractors. Rehabilitation costs include other allowable expenses, such as inspection fees and a required contingency reserve equal to 10 percent of the total rehabilitation cost.MassHousing participating lenders may charge a fee of up to $1,500 based on the cost of the rehabilitation project. In addition, at the time of closing, the borrower will be responsible for the full mortgage monthly payment on the total principal amount. Any remaining rehabilitation funds not used will be applied towards the principle of the loan and turned into equity for the home buyer.Massachusetts Housing Partnership ONE MortgageThe Massachusetts Housing Partnership, a public, non-profit affordable housing organization, offers Massachusetts first-time homebuyers who fall into the low- to moderate-income category the "ONE Mortgage" loan program.The Massachusetts Housing Partnership (MHP) and other local housing groups first collaborated in 1989 to create solutions to housing issues faced by low- to moderate-income home buyers. The result of that collaboration was the Soft Second, or "SoftSecond," Loan Program, which had a two-mortgage structure. By 2013, the SoftSecond loan program had helped more than 21,000 families purchase their first home, with more than $2.6 billion in private mortgage financing. Forty-three percent of ONE Mortgage loans are in Massachusetts Gateway Cities.To continue Soft Second's success, MHP has transformed the program from a two-mortgage structure to the One Mortgage Program. One Mortgage offers lower-income home buyers the same affordability and financial security as the SoftSecond, in a more straightforward one home loan structure.According to the Massachusetts Housing Partnerhip, "The program is successful because it breaks down barriers that used to prevent creditworthy families from buying a home: inadequate consumer education, high interest rates and fees, excessive down payment requirements, compulsory mortgage insurance, and a bias against 2- and 3-family properties. Those are barriers that affected everyone trying to buy a home in Massachusetts, especially minority families and those living in historically underserved neighborhoods."Fixed Interest RateAs of February 2019, 47 lenders participated in the One Mortgage Program. Those lenders offer first-time homebuyers a discounted 30-year, fixed-rate mortgage. There are not any points charged by these participating lenders.Low Down PaymentHome buyers must put down a minimum of 3 percent of the purchase price when purchasing a single-family property, condominium or two-family house. For example, a homebuyer would need a $9,000 down payment for the purchase of a $300,000 home. The borrower must occupy the property. Of the 3 percent down payment, 1.5 percent is required to be from the borrower's own savings; however, the remaining amount can be a gift or down payment assistance, as long as there is no requirement for it to be repaid. In other words, the amount of the gift or down payment assistance cannot be a second loan. For the purchase of a three-family home, the One Mortgage Programs requires a minimum down payment of 5 percent of the purchase price. The home buyer must have 3 percent of the 5 percent down payment in his or her own savings to purchase a three-family home.No Private Mortgage Insurance (PMI)The One Mortgage Program does not require home buyers to purchase private mortgage insurance (PMI), sometimes just referred to as mortgage insurance or MI. Not having to obtain costly PMI saves a home buyer hundreds of dollars every month. Conventional loans require PMI until the borrower reaches 20 percent in equity, which can take several years to reach. Presently, FHA loans require PMI for the life of the loan (see below). Without PMI payments every month, home buyers save thousands of dollars over the first several years of the loan alone.Interest SubsidyIncome eligible One Mortgage Program first-time homebuyers may also qualify for a subsidized monthly payment in the initial years of ownership. The state-funded interest subsidy is designed to decrease your monthly payments over the first seven years, increase your purchasing power, and help you qualify for the ONE Mortgage if you don’t otherwise.For borrowers to qualify for a subsidy, household income must fall below 80% Area Median Income (AMI) for the community in which you are purchasing, and you must demonstrate financial need. Borrowers who have a down payment greater than 20 percent of the purchase price and borrowers who are purchasing three-family properties are not eligible for subsidy.The interest subsidy is automatically wrapped into your ONE Mortgage application, and there is no need to apply for it separately. Upon closing your loan, your lender will arrange to have your interest subsidy applied to your account every month.Borrowers do need to pay back the subsidy. The interest subsidy is secured by a second mortgage held by MHP and is recapturable upon sale or transfer of the property. The subsidy mortgage term is 30 years, and borrowers pay 0 percent interest upon repayment.First-time Home Buyer Program EligibilityThe following are some of the criteria that households must meet to be eligible for the One Mortgage Program.1. The borrower must be a first-time home buyer, which is defined as someone who has not owned a home in the three years prior to applying for the One Mortgage Program.2. The borrower must complete an approved pre-purchase homebuyer education class. The classes are offered in dozens of locations around the state. Some organizations offer classes online. A mortgage professional or your buyer agent will be able to assist with information about available classes. By all means, attend a free home-buying workshop to get started; however, it is strongly suggested that you not pay for a required homebuyer class before you know exactly which loan program your lender says you qualify for.3. Home buyers must meet household income guidelines for the program. The income limits as of April 2018 vary by community and household size. Borrowers purchasing within the City of Boston are required to obtain an "Income Eligibility Certificate" from the Massachusetts Affordable Housing Alliance (MAHA) before an MHP reservation is issued. Borrowers whose total household income does not exceed 100 percent of area median income qualify for the One Mortgage Program, and those borrowers with income below 80 percent of the area median income may be eligible for an MHP subsidy. For example, a household of three purchasing in Quincy, MA may have a household income up to $97,020. Suffolk County (Boston, Chelsea, Revere, Winthrop) has the same income limits. If that same family/household of three has a household income below $77,616, they may be eligible for a subsidy. The income limit for a four-person household in North Attleboro is $80,600, in Braintree, it's $107,800, and in Tewksbury, it's $105,400. A one-person household can make as much as $66,500 in Haverhill and $75,460 in Stoughton. A two-person household in Natick can earn $86,240 while the same household in Bridgewater in capped at $67,280.4. Borrowers must have less than $75,000 in liquid assets, excluding retirement accounts, such as 401K and 403B accounts, to qualify.5. As detailed above, home buyers must have a minimum of 3 percent down payment of the purchase price. Of the 3 percent, 1.5 percent is required to be from the borrower's own savings. For the purchase of a three-family home, the minimum down payment requirement is 5 percent, with 3 percent from the home buyer's own savings.6. The borrowers must meet the credit and underwriting requirements of the participating One Mortgage Program lender they choose.7. The home buyer must agree to use the home purchased as a primary residence through the term of the loan.After closing, One Mortgage Program home buyers must complete a post-purchase homeowner workshop called HomeSafe. Home buyers have one year after the closing on their home to complete the workshop. Topics discussed at the HomeSafe workshop include home maintenance and repairs, insurance, lead paint, budgeting, homeowner discounts, rehab grants, tenant management and other topics of value to homeowners.FHA Home Loan ProgramThe main benefits of FHA loans, which are insured by the Federal Housing Administration, are the low down payment, lenient credit score requirements and the acceptance of a higher debt-to-income ratio. You do not have to be a first-time home buyer to obtain a FHA loan, and FHA loans do not have any income limits. In addition, borrowers, if they qualify, may be able to purchase a more expensive house using a FHA loan than allowed with the MassHousing mortgages and the Massachusetts Housing Partnership ONE Mortgage Program, both of which have loan limits based on property type.Borrowers are permitted to purchase single-family homes, condos and multi-family homes with FHA loans. The Federal Housing Administration does not actually lend any money, so home buyers must use a FHA participating lender. FHA allows down payments of as little as 3.5 percent, all of which may be a gift; however, any reserve funds a lender may require cannot be from a gift.Although FHA allows for credit scores of 580 or higher for 96.5 percent financing and 500 to 579 for 90 percent financing, most lenders will only provide FHA loans to borrowers with a credit score of 620 or higher in order for the loans to be eligible for sale in the secondary mortgage market.FHA Loans Are More ExpensiveWhat makes FHA loans less attractive than other mortgages is that the total cost of borrowing is higher than other first-time home buyer mortgage options. First, borrowers must pay an "Up Front Mortgage Insurance Premium," which is 1.75 percent of the loan. For example, a $300,000 loan will require an up-front payment, which is usually rolled into the loan amount, of $5,250. In addition, FHA loans require an annual insurance premium that is collected in monthly installments, and FHA mortgage insurance, despite a recent reduction (effective January 27, 2017) in MI costs, typically costs more than mortgage insurance for other types of loans.What's the least attractive part of a FHA loan? Since June 3, 2013, borrowers must pay the mortgage insurance for the life of the loan, no matter how much equity the buyer builds up in the property. Typically, once an homeowner can show that the remaining mortgage amount is 80 percent or less of the current value, the borrower no longer has to pay mortgage insurance, but, with FHA loans, the mortgage insurance is permanent. For Massachusetts first-time home buyers with credit scores of 680 or higher, there are other mortgage programs available that are less expensive than FHA. For those home buyers that have income that exceeds the limits of the MassHousing and Massachusetts Housing Partnership mortgages, even conventional loans that require a minimum 5 percent down payment and mortgage insurance likely will be less expensive than FHA for the borrower.Other First-time Home Buyer Loan ProgramsThere are some other loan programs that are not just for first-time home buyers that Massachusetts home buyers may want to consider. The U.S. Veterans Administration provides a home loan guaranty benefit, the U.S. Department of Agriculture has what are referred to as rural development home loans, and local housing authorities and nonprofit organizations have various mortgage down payment assistance and grant programs. The eligibility requirements for the above-mentioned programs are narrow, making most home buyers ineligible.VA Home LoanThe U.S. Veterans Administration helps service members, veterans and eligible surviving spouses become homeowners by providing a home loan guaranty benefit and other housing-related programs to buy, build, repair, retain, or adapt a home for "personal occupancy."VA Home Loans are provided by private lenders, such as banks and mortgage companies; however, the VA guarantees a portion of the loan, enabling the lender to provide more favorable terms. Veterans often can purchase a home without any down payment and without mortgage insurance.To be eligible, a borrower must have a good credit score, sufficient income, a valid Certificate of Eligibility (COE), and meet certain service requirements. The length of a borrower's service or service commitment and/or duty status may determine his or her eligibility for specific home loan benefits.USDA Rural Development LoanThe United States Department of Agriculture has what are referred to as rural development home loans. USDA loans have income restrictions, and the house must be located in designated rural areas. There are a number of locations in Massachusetts that are in USDA eligible rural areas. USDA rural development loans allow for 100 percent financing, and are available through participating lenders.Qualifying debt-to-income ratios are 29 percent for housing costs and 41 percent for total debt. Lenders may request an exception to exceed these ratios when strong compensating factors are identified.There isn't any maximum purchase price, and home buyers may purchase a variety of property types, including existing homes, new construction, modular homes, planned unit developments (PUD's), eligible condominiums and new manufactured homes.Freddie Mac Home Possible Advantage MortgageThe Home Possible Advantage mortgage only requires a 3 percent down payment and offers a fix-rate, conventional mortgage for first-time homebuyers, as well as other qualified borrowers with limited down payment savings. Homebuyers must meet minimum credit score requirements. The entire 3 percent down payment can come from personal funds, local grant programs or gift funds.A Home Possible Advantage mortgage can be used to purchase a single-family home, a condominium and for a refinance of an existing mortgage, without any "cash out" at the time of the refinance. Fixed-rate mortgage loans are available in 15-, 20- and 30-year terms. You must use the home as your primary residence, and you may not have any ownership interest in another residential property as of the date of the note, which is the contract between the lender and the borrower.First-time homebuyers must participate in an approved borrower education program, which your lender can help identify, to qualify for the Home Possible Advantage mortgage. Freddie Mac offers a free online tutorial that meets the education requirements.The Home Possible Advantage mortgage does not have income limits for homes located in designated low- to moderate-income or under served communities, as defined by Freddie Mac. Freddie Mac provides an online eligibility tool where consumers and lenders can enter a zip code to determine what, if any, income limits may be in place for a particular location.For example, a search on August 24, 2016, on Freddie Mac's eligibility tool indicated that there was not any income limit for Lawrence, Massachusetts or Boston's East Boston neighborhood; however, Plymouth, Massachusetts and Boston's South End neighborhood both had an income limit of $126,900.Fannie Mae HomeReady MortgageThe HomeReady mortgage only requires a 3 percent down payment and offers a fixed-rate, conventional mortgage for first-time homebuyers, as well as other qualified low- to moderate-income borrowers with limited down payment funds. Gift funds can be used as a source of funds for down payment and closing costs, with no minimum contribution required from the borrower’s own funds.A HomeReady mortgage can be used to purchase a single-family home, a condominium or multi-unit dwelling. Fixed-rate mortgage loans are available in 10-, 15-, 20- and 30-year terms, and there are adjustable-rate mortgage options too. You must use the home as your primary residence, but unlike other loan programs, you may have any interest in another residential property.Homebuyers must participate in an approved borrower education program, which your Massachusetts lender can help identify, to qualify for the HomeReady mortgage. One option is to participate in the online Framework homeownership education course. The Framework cost is $75.The HomeReady mortgage does not have income limits for homes located in low-income census tracts. Fannie Mae provides an online eligibility tool where consumers and lenders can enter property addresses to determine what if any, income limits may be in place for a particular address. In Massachusetts, there are 1,478 census tracts, and 33 percent do not have income limits. Non-borrower household income is not counted toward income eligibility limits.For example, a search on December 1, 2016, on Fannie Mae's eligibility tool appears to indicate that there was not any income limit for most of Boston's East Boston neighborhood; however, in areas outside of the 484 low-income census tracts, the income limit appears to be $94,000 for most of the Greater Boston area. Borrowers should check income limits for specific addresses.Local Housing Authorities, Organizations and LendersFirst-time home buyers will want to check with local housing authorities in the cities and towns that they want to buy a home in to see whether there may be home buyer down payment assistance and grants available to borrowers that qualify. These types of mortgage programs change often, so home buyers will want to obtain information directly from the source of such programs because information online and from other sources may become outdated quickly. These programs are extremely limited and usually only made available to low-income homebuyers.The Massachusetts Department of Housing and Community Development annually awards funds to certain communities and not-for-profit agencies that operate local first-time home buyer programs. Funds are used to offer down payments and closing costs assistance loans to first-time home buyers that are income eligible.Some local banks offer attractive loans to first-time home buyers that plan to purchase in a particular community or communities.First-time home buyers may want to schedule an in-person meeting with a real estate buyer agent who is willing to take the time to explain the home-buying process and various mortgage options available.Lender-paid Mortgage Insurance OptionNo home buyer wants to pay mortgage insurance (MI), commonly referred to as private mortgage insurance or PMI, but saving enough money for a 20 percent down payment to avoid PMI, especially in the high-cost real estate markets, is easier said than done.All home buyers, not just first-time homebuyers, have an alternative to loan programs that place income and other limitations on borrowers. Lender paid mortgage insurance (LPMI) is an option for Massachusetts home buyers who do not have enough money saved for the 20 percent down payment needed to avoid mortgage insurance, but want to reduce their monthly mortgage payments.With an LPMI option, a borrower's mortgage lender pays the mortgage insurance premium upfront in a lump sum and passes on the cost to the borrower in the form of a higher interest rate. The interest rate for LPMI loans are often one-quarter to one-half a percent higher, but interest rates sometimes can be outside of that range, either lower or higher. The borrower then does not have to make monthly mortgage insurance payments.Most home buyers don’t realize that even with the slightly higher interest rate that comes with an LPMI loan, the monthly mortgage payment may be lower than what the amount would be with the standard monthly PMI cost. Private mortgage insurance, both regular and lender-paid, gets more expensive with higher loan-to-value ratios or lower credit scores.LPMI also helps borrowers trying to stretch their buying power. A borrower typically qualifies for a slightly larger loan amount with an LPMI mortgage than with a monthly PMI mortgage because of the lower monthly payment.Another appealing feature of LPMI is that since borrowers are paying a higher interest rate, and mortgage interest may be tax deductible on federal income taxes, a borrower may have a larger tax deduction than he or she would with a PMI loan. Unfortunately, PMI is no longer an IRS allowable deduction so by rolling the cost of the mortgage insurance into the interest rate a borrower may have a bigger tax deduction. Homeowners should consult with their accountant or tax adviser. Recent changes in the tax could limit this deduction depending on other factors.

Here is a timeline detailing how COVID-19 has impacted the automotive industry around the world, and in India.Thursday, April 9● Honda has had resumed operations at its manufacturing facility in Wuhan, China in phases on March 11, 2020. The plant is now functioning at full capacity, with several safety measures in place to fight the coronavirus threat. In a bid to make up for lost time, the daily production targets of the plant have been raised by 17 percent, and the workers have been asked to work an additional 1.5 hours daily.● Mahindra & Mahindra has now begun producing face shields at its two-wheeler manufacturing plant at Pithampur, Madhya Pradesh. This is the plant where the company produces its Jawa motorcycles. With this, the company has increased its volume of assembled face shields. One may recollect that M&M began assembling face shields in March at its Kandivali plant in Mumbai, Maharashtra.Wednesday, April 8● Ola has launched a new service called ‘Ola Emergency’ in Bengaluru, Karnataka that allows citizens to book taxis via the Ola app for non-COVID related medical trips to the hospital. Customers can choose from a select list of hospitals in the city as their destination and the cars and drivers in this service come equipped with masks and sanitizer. This feature is also slated to launch in other major cities soon.● Hyundai India has made its ‘Click to Buy’ - online car sales platform available pan-India. The sales platform has now incorporated over 500 Hyundai dealerships spread across the country. The service gives customers the ability to purchase any Hyundai car online via the ‘Click to buy’ platform without needing to physically visit a dealership.● Mahindra Logistic’ Alyte will be providing emergency cab services in Hyderabad to people affected by the current transportation situation caused by the ongoing Coronavirus crisis. These services are focused on single mothers, differently-abled individuals, senior citizens, doctors, nurses, etc., and will be provided to secure transport for essential services like shopping for essentials and medication, visits to banks, post offices and periodic medical visits.● The 2020 Formula 1 season won’t be getting underway any time soon, with organizers of the Canadian GP postponing the race as the world continues to come to grips with the COVID-19 pandemic. The race was originally scheduled to be held on June 14, but organizers are hoping to secure a later date in the calendar, once the situation improves. This puts the French GP (June 28) next up on the list as the first F1 race for this year.Tuesday, April 7● Due to the ongoing Coronavirus pandemic, Citroen has announced that it has pushed back the launch of its first model for India, the C5 Aircross, to the first quarter of 2021. The carmaker had originally planned to launch the SUV in the second half of 2020. In a statement, the carmaker said, “The re-timing is aimed to move the commercial launch to a potentially more positive economic activity period where consumer sentiments are upbeat.”However, the French carmaker has said that launches of its made-in-India models are still on track, with the first model – the C21 compact SUV – expected to arrive next year.● The Italian and Catalan Grands Prix – originally slated to be held on May 31 and June 7 respectively -are the latest set of MotoGP races to now be postponed as a result of the COVID-19 crisis. The FIM has released a statement saying that new dates for these races “cannot be confirmed until it becomes clearer when exactly it will be possible to hold the events”. The postponement of the Catalan GP also means that fans will have to wait longer to see Jorge Lorenzo make his one-off MotoGP return. The retired MotoGP champion was supposed to compete in the race as a wildcard entry for Yamaha.● Ford India has announced it has started to manufacture face shields at its plants in Chennai and Sanand. The carmaker also provided an extension of its warranty schemes and service programs. It stated that all warranties expiring between March 15 and May 30, 2020, will now be valid until June 30. The same extension is also applicable to all scheduled services, including the free services. The carmaker is also offering 24-hour roadside assistance (RSA) to all its customers at no cost and is available irrespective of if they have purchased the RSA option or the age of the car.Ford also announced a price protection program for anyone who makes a booking until April 30.Monday, April 6● Toyota has initiated a ‘Customer Connect’ program to alleviate inconveniences for owners in light of the national coronavirus shutdown. The company has announced an extension of vehicle warranty for new vehicles as well as vehicles purchased from Toyota U-Trust, free maintenance service, roadside assistance, extended warranty, and the ‘Smiles’ pre-paid maintenance package for up to two months. Toyota will also be extending free emergency support to customers who don’t have coverage until 15 days post the lockdown. The automaker says that there will be an extension till May 31, 2020, for owners whose respective programs and products may have expired during the shutdown. Moreover, services such as vehicle inspection, cabin care, and tire- and battery-related services will be provided at special prices once Toyota dealerships are operational.Saturday, April 4● Hyundai Motor India Foundation, the CSR arm of the carmaker has just announced that it will be making contributions to both the PM CARES Fund as well as the Tamil Nadu CM Public Relief Fund to help in the fight against the Coronavirus pandemic. Hyundai will also join hands with a local manufacturer to increase the production of ventilators to meet its growing demand across the country, in addition to the prototype ventilators it has already submitted to the Government of Tamil Nadu for consideration. Hyundai will also coordinate with local government bodies to supply dry rations to those in need.Friday, April 3● The 2020 Beijing motor show has been postponed due to the Coronavirus pandemic. The show which was supposed to be held on April 21, will now take place between September 26 and October 5, 2020.● As a goodwill measure, Kia Motors India, which has a manufacturing unit in Anantapur, Andhra Pradesh, has donated Rs 2 crore to the state’s Chief Minister’s Relief Fund.● Kia has announced that it will be providing extended free services to all its customers until July 2020, which should come as a relief to owners unable to follow the stipulated service schedule due to the ongoing lockdown.Thursday, April 2● To avoid disruption and hardship to motorists in the 21-day lockdown period, the government has provided an extension for the renewal of motor vehicle insurance until April 21, 2020. The Ministry of Finance has announced that policyholders, whose third-party motor vehicle insurance coverage expires between March 25 and April 14, 2020, can now renew their policies until April 21, to ensure continuity of cover from the date on which the policy is due for renewal.● The Karnataka Police has banned the use of vehicles in the state until April 14 to ensure better compliance with the country-wide shutdown. Any two- or four-wheeler found plying on the roads will be seized and released only after two weeks.● Skoda Auto Volkswagen India Private Limited will be donating Rs 1 crore to the Sassoon General Hospital in Pune towards establishing a dedicated COVID-19 facility with 1,100 beds. The automaker will also provide 35,000 sanitizers to hospitals in Pune, Aurangabad, and Mumbai, and distribute food packets among the underprivileged in the Aurangabad region. Furthermore, the group is producing reusable face shields at its Chakan factory, which will be a part of personal protective equipment (PPE) for medical workers. The company is also said to be attempting to tap into its global supply chain to organize essential medical supplies for India.● As part of its Developer Program, MG Motor India has announced a challenge for developing an affordable ventilator. Entries are being accepted until April 15, and they will be scrutinized by a team of medical experts. The best design will be provided a Rs 10 lakh grant, as well as production support at MG’s manufacturing facility in Halol, Gujarat.Wednesday, April 1● Honda India Foundation, the CSR arm of all Honda group companies in the country, including Honda Cars India and Honda Motorcycle and Scooter India, has earmarked Rs 11 crore to support relief efforts during the ongoing COVID-19 pandemic. The organization will extend financial aid towards Central and State governments’ relief funds in the five states where Honda manufacturing facilities are located, including Haryana, Uttar Pradesh, Karnataka, Gujarat, and Rajasthan. The foundation says that Honda group company associates have pledged to donate a day’s salary towards the total relief aid. Honda will also support local administration at its manufacturing locations by making available ambulances stationed at its plants and also supply food packets to the underprivileged. Besides the monetary aid, the conglomerate is supplying 2,000 units of its engine-powered high-pressure backpack sprayers to various government bodies to use for disinfectant fumigation.● Mercedes-Benz India will set up a temporary hospital in Pune, with a 1,500-bed isolation ward for COVID-19 patients. The facility currently being used is the Maharashtra Housing and Area Development Authority’s (MHADA) housing area, which is a newly built structure with 374 rooms, in the Mhalunge-Ingale village, Chakan Khed, close to Pune, Maharashtra. The German brand will also support 1,600 daily-wage workers and BPL families from Khed and Viman Nagar areas by providing them with dry ration and cleaning kits.● Audi India announced an extension for all its customers whose service package or extended warranty ends during the lockdown period (March 15-April 15, 2020). This means those customers will be able to avail of the service, the window for which has been extended by one month or 3,000km (whichever comes first), while the window to purchase the extended warranty will be stretched by two months from the last day of the lockdown.● Rajeev Chaba, President, and MD of MG Motor India announced via social media that he will be contributing one month’s salary towards coronavirus relief aid. He also stated he hopes to do more in the future.● In light of the coronavirus pandemic, both the Paris and Detroit motor shows have been canceled. The organizers of the Detroit motor show announced that they will be providing refunds to those who have purchased tickets.Tuesday, March 31● The Hero Group has announced that it will contribute Rs 100 Crore as an aid for the ongoing COVID-19 relief efforts in India. Half of this sum, Rs 50 Crore, will be contributed to the PM CARES Fund and the remaining Rs 50 crore will be spent in other relief efforts.● An extension has been issued by the Ministry of Road Transport and Highways to extend the validity of driving licenses and vehicle registrations expiring between February 1 and June 30, 2020. This has been done in the light of the 21-day nationwide lockdown issued to tackle the COVID-19 pandemic.● Isuzu announced that the launch of its BS6-compliant range of vehicles will be pushed due to the coronavirus (COVID-19) pandemic. The carmaker will also extend the validity of warranties and services with expiry dates between March 15 and April 15, to May 31, 2020, for existing owners of its vehicles.● Land Rover deployed over 57 Defender SUVs to help the efforts of the British Red Cross in the fight against the coronavirus. The carmaker has also provided a number of its other SUVs to the UK Health Authorities and the Spanish Red Cross.Monday, March 30● Toyota Kirloskar Motor (TKM) has announced a series of measures to alleviate the stress of the lockdown on its dealer partners. Called the ‘COVID package’, the scheme is targeted at ensuring liquidity to sustain the business during the lockdown by protecting dealers for approximately 38-75 days by giving cash-flow support. The package includes the immediate settlement of any dealer claims, inventory interest subsidy for vehicles in dealer stock and spare parts payment deferment. Besides, TKM is also working with its finance partners for a one-time reduction of inventory funding interest.● Mahindra & Mahindra has begun the manufacture of a face shield that’s developed from a design sourced from partner Ford Motor Corporation. The face shield fully blocks the face and eyes from accidental contact with liquids. When paired with N95 respirators, it can be a more effective way for medical workers and first responders to limit potential exposure to coronavirus than the respirators alone.● In light of the ongoing lockdown, Maruti Suzuki has announced an extension to avail of the brand’s service and warranty facilities. The free service, warranty and extended warranty programs ending between March 15 and April 30, 2020, will now be valid up to June 30, this year.● Volkswagen India has also announced relief for customers on the service and warranty front. Standard warranties expiring between March 22 and mid-May will now be valid till July 31, 2020. Owners with standard warranties expiring between March 22 and April 15 will be given the option to purchase an extended warranty that lasts 60 days after the standard warranty ends, while existing extended warranty plans expiring between the same period will be valid till May 15, 2020. People with a valid service value package that have scheduled maintenance due in March and April can avail the same facilities till July end. Lastly, VW has also given leeway till July 31 to users whose free or paid services are due during the lockdown.● Japanese utility-vehicle manufacturer Isuzu has announced that it will only introduce its BS6 model range from the second quarter of 2020-21. The automaker is also offering a May 2020 extension for the vehicles whose warranty expires between March 15 and April 15, and for those vehicles that have their periodic maintenance service due in the same period.Sunday, March 29● Yamaha has announced that it will be extending its warranty and other services for its two-wheelers in India. As part of the ‘Yamaha Lifetime Quality Care’ approach, it will extend its services for an additional 60 days (until June 2020) from the date of expiry. Free services expiring between March 15 and April 15 will be extended until June. Normal and extended warranties expiring between March 15 and April 15 will be extended till June as well.Saturday, March 28● In the US, Ford has begun work on manufacturing ventilators and personal protective equipment (PPEs). The automaker is partnering with GE Healthcare to expand production of a simplified version of the latter’s existing ventilator design. It is collaborating with 3M to bolster the manufacture of its powered air-purifying respirator (PAPR) and jointly develop a new design leveraging components from both companies. Ford has also designed a full-face shield, which when paired with N95 respirators, should provide additional protection to healthcare workers. Mahindra is leveraging the design to develop and produce face shields for use in India.● Tata Trusts has earmarked Rs 500 crore to empower and protect affected communities from the COVID-19 outbreak. Ratan Tata, chairman, Tata Trusts has announced that the organization is committing the sum for providing personal protective equipment, respiratory systems, and testing kits and setting up modular treatment facilities for patients. Additionally, the resources will be used for knowledge sharing and training of healthcare workers as well as the general public.● Maruti Suzuki India Limited (MSIL) has entered into an agreement with AgVa Healthcare, a medical equipment manufacturer, for producing up to 10,000 ventilators per month. The automaker will leverage its suppliers for producing components and tap into its technical know-how to upgrade systems for production and quality control. It will also aid in arranging financing, to the required extent. The carmaker will provide these services free of cost to AgVa Healthcare.Moreover, MSIL joint ventures, Bharat Seats Limited and Krishna Maruti Limited have further pledged to manufacture protective clothing and 20 lakh 3-ply masks respectively.● The TVS Motor Company has announced a Rs 30 crore economic aid package. The money is being funded by the Srinivasan Services Trust (SST), the social division of the TVS Motor Company and Sundaram-Clayton Limited. The funds will be used for providing disinfection services, distributing one million face masks and providing daily meals to police personnel and healthcare and municipal workers. The company is supplying dry rations to daily wage workers in Baddi, Himachal Pradesh as well. TVS is also evaluating the prospect of producing ventilators.● Contributing towards the fight against the coronavirus pandemic, Hyundai Motor India Foundation, the automaker’s CSR arm, has ordered advanced diagnostic testing kits for COVID-19 from South Korea. The organization states that the kits will have a very high level of accuracy and will be capable of testing 25,000 people. The procured kits will be distributed tomorrow to hospitals after consultation with the central and state governments. Commenting on the initiative, S S Kim, MD, and CEO, Hyundai Motor India, said, “We will continue to monitor the situation closely and support the Indian Government with multi-layered CSR initiatives to bring back normalcy at the earliest.”Friday, March 27● The Supreme Court has granted a conditional extension of the BS4 deadline. Dealers across the country, except those in Delhi-NCR, will be allowed to sell 10 percent of their BS4 stocks for up to 10 days after the nationwide lockdown ends. The ruling comes in response to the Federation of Automobile Dealers Association’s (FADA) plea, in light of the dealer community not being able to clear BS4 inventory till March 31, due to the lockdown.● The Bajaj Group has announced a Rs 100 crore COVID-19 pandemic relief package that aims to upgrade healthcare facilities as well as support initiatives to provide food and shelter to those in need. Also, the company will help those affected in rural areas using a special economic aid program.● Ride-hailing company Ola has launched the ‘Drive the Driver Fund’ under its social welfare arm, Ola Foundation. The fund will provide aid to autorickshaw, cab, kaali-peeli and taxi drivers in the form of medical and emergency support and essential supplies. The Ola group and its employees will contribute Rs 20 crores towards the fund and Bhavish Aggarwal, co-founder, and CEO, Ola, will also pitch in by foregoing a year’s salary. Additionally, the company has also launched a crowdfunding campaign to further raise Rs 50 crore towards the fund.The mobility solutions provider had earlier revealed other initiatives to relieve the stress of the coronavirus pandemic. It had announced a special COVID-19 insurance cover for driver-partners and their spouses. The company had also waived lease rentals for driver-partners operating vehicles under its subsidiary, Ola Fleet Technologies.● The Goodwood Festival of Speed has been postponed due to the current coronavirus crisis. The Festival of Speed is one of the largest motoring events in the UK, and the 2020 edition was scheduled to be held between July 9-12, 2020. The event is now supposed to take place sometime in late summer-early autumn (August-September). The organizers have also clarified that the tickets that have already been purchased will stay valid for the postponed festival.Thursday, March 26● As expected, the 2020 MotoGP season has been hit with yet another delay. The 2020 Spanish Grand Prix, which was supposed to take place on May 3, 2020, has now been postponed as a result of the escalating COVID-19 outbreak in Europe. A statement released by the FIM says, “as the situation remains in a state of constant evolution, a new date for the Spanish GP cannot be confirmed until it becomes clearer when exactly it will be possible to hold the event. A revised calendar will be published as soon as available.”Wednesday, March 25● In an attempt to aid authorities in battling the increasing number of COVID-19 cases, MG Motor India has pledged to donate Rs 2 crore to government hospitals and health institutions in Gurugram, Haryana, and Halol in Gujarat. While the carmaker is headquartered in the former city, it has an 80,000-unit capacity manufacturing plant in the latter. Half of the promised donation is being earmarked from the company’s coffers, and the rest is being pledged by the employees. Contributions will include essentials like gloves, masks, ventilators, medicines, and beds, depending on the requirements of the medical institutions.Tuesday, March 24● Classic Legends Private Limited, makers of the Jawa motorcycles – Jawa and Forty Two, has announced that deliveries of the bikes will be delayed, due to production constraints caused by the COVID-19 pandemic. Parts like the LCD panel for the instrument cluster were sourced from Chinese vendors.● Indian electric two-wheeler manufacturer Okinawa has put all its manufacturing operations on hold until further notice, as safety measures to tide over the COVID-19 breakout.● Mazda is suspending production for 13 days and operates daytime shifts only for eight days at its Hiroshima and Hofu plants in Japan, starting from March 28, through to April 30. For its overseas plants, Mazda de Mexico Vehicle Operation, the production site in Mexico, will shut down for approximately 10 days starting from March 25, and AutoAlliance (Thailand) will suspend production for a similar period, starting from March 30.● Aston Martin has suspended all manufacturing operations at its UK plants till April 20.● General Motors announced that it suspended operations at its Talegaon plant since March 21 in the wake of the COVID-19 outbreak in India.Asif Khatri, vice president of Manufacturing, GM India, stated, “The safety and wellbeing of our employees is the utmost priority. These steps are necessary in the fight against the spread of COVID-19. We stand in solidarity with the Government of Maharashtra’s initiatives to stop the spread of this pandemic.”The facility is currently used to manufacture models for exports, with GM having stopped sales in the domestic market in 2017. The plant is set to see a change in ownership later this year as a part of Chinese manufacturer Great Wall Motor's foray into the Indian automotive market.● After announcing a halt in production at its India facilities just a day before, Nissan has revealed it will be adopting a similar course of action at other global sites due to the coronavirus pandemic. Production will be suspended at its Rosslyn plant in Pretoria, South Africa from March 26 until further notice. Nissan's facilities in 6th of October City, Giza, Egypt will also suspend operations from March 26, for an initial period of two weeks.● Toyota Kirloskar Motor temporarily shut down its production plant in Bidadi, Karnataka on Sunday, March 22. In light of the recent directions given by the Government of Karnataka, the plant will continue to remain shut until further notice. TKM has extended the ‘Work From Home’ policy to all its employees at its corporate office in Bidadi, along with its regional SBUs (Strategic Business Units) in Delhi, Mumbai, Kolkata, and Bengaluru.Monday, March 23● Acknowledging their customers’ inability to visit authorized workshops for service, maintenance, and repairs, Tata Motors has conveyed that it will be extending the time for availing the stipulated facilities. Owners whose vehicles have an OE warranty and free service period (not kilometers) expiry date that’s between March 15 and May 31, 2020, can use these benefits until July 31.● The Azerbaijan GP has joined the long list of Formula 1 races that have been postponed. Formula 1 was hoping to get its 2020 season underway at the Baku street circuit on June 7. However, race organizers have now confirmed their decision to postpone the event “as a direct result of the ongoing COVID-19 pandemic”. The Canadian GP (June 14) is next up on the calendar. But there is a high likelihood that the race could be called off in the coming days, with Canada imposing tight restrictions. The country has already become the first to withdraw from the 2020 Olympic Games, which, thus far, is due to start in July.● Kia Motors India has announced that, with immediate effect, it will be temporarily shutting down all operations, till further notice. This includes Kia’s offices and manufacturing facility in Anantapur (Andhra Pradesh). Kia’s digital channels will, however, remain open for customers.● Renault India and Nissan India have announced the temporary suspension of all operations at its Alliance manufacturing facility in Chennai, till further notice. However, the Renaults’ 24x7 Road Side Assistance (RSA) service will still be operational.● Yamaha has announced that it is taking the preventive measure of suspending its manufacturing operations at its plants in Chennai, Surajpur, and Faridabad until March 31, 2020.Operations at the Surajpur plant in Uttar Pradesh and Faridabad plant in Haryana have been suspended from March 23, whereas the operations at the Chennai plant will be suspended from March 24. Yamaha has also said that it has been taking all precautionary measures such as increased frequency of sanitization at factory premises and work stations, restrictions in travel, and creating awareness among the employees in the current scenario.Yamaha has launched multiple BS6 models that have begun reaching dealerships across the country, which means they will have bikes to sell after April 1 deadline.● The suspension of manufacturing and assembly lines isn’t the only thing that has come to a halt due to COVID-19. The updated Triumph Street Triple RS’s launch in India, set to take place via a digital event on March 25, has been postponed to a later date owing to the outbreak.The 2020 Street Triple RS features an updated 765cc, liquid-cooled, in-line triple engine that produces 123hp and 79Nm of torque, and it looks like the wait to get our hands on it or the prices have gotten longer. Triumph has revealed that details of the reschedule launch will be shared on March 31.● TVS Motor Company has decided to halt all manufacturing operations at its plants in India and Indonesia until further notice. This includes manufacturing facilities and offices in India and globally until further notice.● Benelli's manufacturing and assembly plant in Hyderabad will remain closed till March 31, on account of the COVID-19 pandemic. The factory on the outskirts of Hyderabad is currently Benelli's only such facility in the country, and the manufacturer’s entire line-up is put together here. At the moment, Benelli has not launched any of its BS6-compliant models in India, and the shutdown of its facility might see a delay in the same.Sunday, March 22● Mahindra Group chairman, Anand Mahindra, has revealed over Twitter that the company is contemplating the manufacture of ventilators at its production facilities and converting its Mahindra Holidays resorts into temporary care facilities for COVID-19 patients. Other automakers across the globe are also being approached for the manufacture of life-saving medical equipment. You can read more about it here.● Suzuki Motorcycles India Pvt Ltd has suspended production at its Kherki Dhaula, Gurgaon plant by the directives issued by the Haryana Government. The two-wheeler manufacturer has said that that production will remain suspended till further notice issued work from home advisory to its employees.● Toyota Kirloskar Motor has temporarily halted production at its plant in Bidadi, Karnataka along with saying that it has laid out work from home directives to its employees working in the company’s regional offices. The carmaker has not revealed a proposed date of re-commencing production.● Hyundai Motor India has announced the suspension of production at its Chennai plant with effect from March 23, 2020, till further notice. The carmaker has said that the plant will resume operation based on further notifications from the Karnataka Government.● Honda Cars India has announced that it will be suspending production at its Greater Noida and Tapukara plants with effect from March 23, 2020. The carmaker has said that it will be looking to resume operations from April 1 subject to advice from government and health authorities and market conditions.The carmaker has also said that it has asked its office staff to work for a home with only employees engaged in essential services requiring to be physically present.● Maruti Suzuki has announced that it is temporarily shutting operations at its production facilities in Haryana – Gurugram and Manesar – along with saying that it’s Research and Development center in Rohtak will remain closed. The carmaker has that the shutdown is by the government policy and its extent will depend on future policy announcements.● Mahindra and Mahindra have announced the temporary suspension of manufacturing operations at its Nagpur, Chakan, and Kandivali plants till March 31, 2020. Operations at the Nagpur plant have been suspended with immediate effect, with the Chakan and Kandivali plants to suspend manufacturing operations from Monday night, March 23.The carmaker has said that it is continuing to monitor the situation and will take appropriate action on other plants across the country. The carmaker had previously announced work-from-home measures for its offices, earlier in the week.● Hero MotoCorp has announced that it is suspending production at all its facilities across the globe and its Global Parts Centre in Rajasthan with immediate effect, till March 31, 2020. The company, though, has said that its other functions, including its Centre of Innovation and Technology, will continue to function on a work-from-home policy, except for employees whose physical presence is required to run essential day-to-day services.● Fiat Chrysler Automobiles (FCA) has announced the suspension of production and temporary closure of its plant at Ranjangaon, Maharashtra, with immediate effect, citing the rising number of COVID-19 cases in the state. The manufacturer has said that the suspension will be in effect till March 31, 2020, with only employees engaged in emergency services continuing to staff the facility.The carmaker has said that it will be undertaking a cleaning and sanitation drive, including fumigation, at its facility during the temporary closure. FCA has also iterated that the closure will result in no job losses and that all employees will continue to receive pay during the period of closure.Saturday, 21 March● Harley-Davidson shut its factory in the US after one of the employees tested positive for the Coronavirus. Harley-Davidson has said the factories will remain closed until March 29th, to help “support employee health and further bolster coronavirus containment efforts.”● In the interest of safety for its employees, Tata Motors has announced that it is rapidly scaling down activities at its Pune facility to skeletal operations by the end of Monday, 23rd March. The carmaker will be ready for plant closure by end of Tuesday, 24th March if the situation warrants and remain in this mode till 31st March and review it in due course.Friday, 20 March● The 2020 edition of the Monaco GP has been called off entirely in the wake of the escalating novel coronavirus (COVID-19) situation. This means that the Monaco GP won’t be held for the first time in 66 years. Formula 1 has also announced the postponement of the Dutch and Spanish GPs.● Bugatti has suspended production at its plant in Molsheim, France. In a statement, the hypercar manufacturer said necessary regulations implemented by European governments to combat the COVID-19 pandemic make it impossible, amongst other things, to maintain the supply chain of production and spare parts. Also, it is almost impossible to deliver vehicles completed in the Atelier to their owners due to the travel restrictions.● Hyundai India has announced a series of measures as COVID-19 cases continue to rise in the country. Adding that it has advised its employees to work remotely, the company has set up a preventive thermal screening for its employees and has asked dealer and vendor partners to strictly follow government advisories. Hyundai will also offer a 2-month extension to customers who are unable to avail of their vehicle’s warranty / extended warranty / free service due to a health emergency or dealership shutdown in affected cities. The company will also continue to offer 24x7 Roadside Assistance and has deployed an additional 1,000+ Doorstep Advantage bikes and emergency road service cars.● Apollo Tyres’ top management has announced a voluntary reduction in pay due to the impact of COVID-19 on the automotive industry. Company Chairman and MD Onkar S Kanwar and Vice Chairman & MD Neeraj Kanwar have accepted a 25 percent reduction in their salary. Furthermore, other senior executives have also taken a voluntary 15 percent reduction in their salary in a show of solidarity due to the rapidly deteriorating market conditions.● Toyota Kirloskar Motor's regional Strategic Business Units in Delhi, Mumbai, Kolkata, and Bangalore to operate with temporary reduced headcount [50%]. The selection of such 50 percent staff would be done in such a way that there is minimal business impact and also to minimize the risk of staff health. The balance 50 percent of the staff will work from home.Thursday, 19 March● In consultation with Volkswagen Group and the KOVO union, Skoda Auto suspended production at its Czech plants in Mladá Boleslav, Kvasiny and Vrchlabí at 10 pm on March 19, for an initial period of minimum two weeks. The company says the factories are being shut down in an orderly manner in close alignment with the supply chain to ensure a smooth process. As things stand, operations are scheduled to re-commence on April 6. Meanwhile, the production of Skoda models has resumed at the Chinese plants. In India and Russia, manufacturing is continuing according to plan.● Honda has suspended production at its UK plant, where the Civic hatch is built, "in light of increasing difficulties with supply chains and considering the wellbeing" or staff. The firm says it intends to restart production on 6 April, dependent on government advice and market conditions.● The Driving Vehicle Standards Agency has postponed all driving tests in the UK due to take place today and tomorrow. In Northern Ireland, driving tests have been suspended for three months.● Both Ford and GM will suspend production at their North American factories until at least 30 March. The two firms say they will take the time to clean and sanitize their plants in the USA, Canada, and Mexico, and both are in talks with unions about keeping workers safe when production resumes. Audi has also suspended production in its Mexico plant due to supply chain issues.● Hyundai has suspended production at its US factory in Alabama after a worker tested positive for COVID-19. The firm is working with local officials to sanitize the site and determining when it is safe for production to resume.Wednesday, March 18● The motorsport calendar faces another hit in the wake of the ongoing coronavirus (COVID-19) pandemic, with the 2020 Isle of Man TT now canceled. The event was scheduled to take place between May 30 and June 13, 2020, and preparations for the event were already underway. However, the outbreak and severity of the situation in the United Kingdom have led organizers to call off the event. This is the first time since 2001 that the iconic motorcycle racing event has been canceled.Volkswagen India chooses to launch its second SUV of 2020 – the T-Roc – digitally, sticking to the formula of social distancing. The T-Roc's online launch comes just about two weeks after the German carmaker launched its BS6-compliant Tiguan Allspace in Mumbai on March 6.● Hero MotoCorp, India's largest two-wheeler OEM, sets up a task force to respond to the Coronavirus outbreak. Employees have been told to work from home every alternate day, and non-essential travel and physical meetings have been discontinued. The company says it is well prepared with a contingency plan.● The Le Mans 24 Hours has been moved back from its planned 13/14 June date until 19/20 September. The organizers say the delay will involve rescheduling several rounds of the FIA World Endurance Championship.The world's most prestigious endurance race was first held in May 1923 but has since been run in June, with two exceptions. In 1956, the event was held in July, while in 1968 civil unrest in France caused the event to be delayed until September. The race has been canceled 10 times: in 1936 due to a labor strike, and between 1940 and 1948 due to World War Two.● Rolls-Royce has confirmed it will suspend production at its Goodwood manufacturing plant from Monday, March 23. The suspension is currently planned for two weeks and leads into the already scheduled two-week Easter maintenance shutdown. It added that day-to-day operations will be assured by non-production staff at the company's head office, or working remotely.Company boss Torsten Müller-Ötvös said: “This action has not been taken lightly, but the health and well-being of our exceptional workforce are first and foremost in our minds. We are a tight-knit community at the Home of Rolls-Royce and I do not doubt that our resilience will shine through during this extraordinary time."● Porsche has announced that it will stop production for an initial period of two weeks. The decision will affect its Zuffenhausen and Leipzig plants in Germany, with the suspension starting from Saturday, March 21. The firm cited the protection of its personnel due to coronavirus, but added that bottlenecks in its supply chain no longer enabled "orderly production". The firm also said it is anticipating a decline in demand.● Toyota is suspending production at all of its European plants, including its two UK facilities in Burnaston, Derbyshire, and Deeside, Flintshire.● The BMW Group is also in the process of halting production at all of its European factories, along with its site in South Africa. They will all be closed by the end of the week and is currently scheduled to last until April 19.● Honda will suspend production at all of its North American plants for six days from 23 March, due to an "anticipated decline in market demand". It said it will continue to pay staff fully during the suspension, and will also utilize the period to enhance deep cleaning measures. The move will affect plants in the USA, Canada, and Mexico.● The Tesla factory in Fremont, California is set to be forced to close, with officials in Alameda County having reportedly determined it is a "non-essential" business. The plant was originally set to stay open despite a "stay at home" order in the county, but county spokesperson Sargeant Ray Kelly told The Mercury News: "If Tesla was a hospital if Tesla was a laundromat if Tesla was a mechanic shop, we wouldn’t be having this conversation. But Tesla makes cars, and that’s not essential for us to get through this health crisis.”Tuesday, March 17● Pierre Mobility – the parent company of KTM, Husqvarna and GasGas – announced the implementation of a two-week company vacation at its Mattighofen plant in Austria from March 30 to April 10. This due to an interruption of components supply due to the complete shutdown in northern Italy. Deliveries of KTM and Husqvarna in India will be affected as some components are sourced from that region, including Italy.● Ducati has announced that it has extended the shutdown of its production lines in Borgo Panigale to March 25 because of the recent coronavirus outbreak. The original deadline was March 18 but was extended as the pandemic spread across Italy. Ducati also said that all activities relating to new product development and market support are ongoing in compliance with the rules of conduct against the spread of the virus.● Mahindra & Mahindra announced a ‘work from home’ (WFH) policy, from March 18-31, for 7,000 desk-based staffers. However, the company's manufacturing and R&D operations will continue functioning.● FCA India, which retails the Jeep brand of SUVs, says it "has permitted over 50% of its staff in its Mumbai and Pune offices to work from home, at least until March 31, 2020, and is taking proactive measures to ensure ‘social distancing’, which is the need of the hour."● FCA, which operates from three locations in India – Corporate Office in Mumbai, an Engineering office in Pune and the main Engineering Centre in Chennai – says it has prioritized the option of ‘work from home’ (WFH) for its staff in Maharashtra based on precautionary advisories by the government of India and also the State Governments. The WFH alternative for the mission-critical engineering workforce in Chennai is under consideration and not in play as yet.● Volvo Car India announced a 'work from home' strategy as a safety measure with immediate effect. As part of its overall health and safety plan to mitigate risks associated with COVID-19, the company said the "the necessary IT infrastructure is in place to facilitate business continuity, with scheduled meetings managed via Microsoft Teams/ Skype."● Federation of Automobile Dealers Associations (FADA) approaches the Supreme Court to extend the cut-off for sales of BS-IV vehicles to May 31 as retail sales have nosedived due to the impact of Coronavirus. According to FADA president Ashish Kale, "In the past week, there has been a drastic drop in sales and customer walk-ins have reduced to a trickle as caution sets in due to fear of spreading of the virus. Counter sales have fallen by 60-70% across auto dealerships. The situation has worsened in the past 3-4 days with partial lockdown situations in many towns and cities and few district magistrates have started issuing notices of the closure of shops and establishments including auto dealerships to stop the spread of the virus. Many of our members may face dealership closures if leftover with unsold BS-IV stocks."● Ford will suspend production at its factories in continental Europe from Thursday 19 March. The decision, which the firm expects "will continue for several weeks" will affect two plants in Germany and one in Romania. The firm has already suspended production at its Valencia factory after three workers were confirmed with coronavirus. The firm's two UK engine plants are not affected. The firm added that while dealerships in some countries have temporarily closed their sales operations, its dealers are committed to "provide essential maintenance and service across the continent."● The Volkswagen Group is shutting down most of its factories in Europe, with boss Herbert Diess saying that it's “almost impossible” to forecast the company's 2020 financial performance.● Volkswagen India's plant in Chakan, near Pune, is not facing any major production disruption yet because it's already on a 3-week production shutdown, starting Monday, March 16. The company says this shutdown is to prepare the production lines for the new set of models based on the new MQB A0 IN platform that will drive the global major's 'India 2.0' strategy in the marketplace.Though there could have been a potentially serious impact in production due to disruption in supplies from the virus outbreak affected automotive hubs outside of China. Volkswagen started production of BS-VI cars in February as planned, though there would be a delay in the production of vehicles with automatic transmissions sourced from Japan. The delay could be a "maximum" of two to three months. "It (production shutdown timing) fits pretty well in the current environment. We are also supporting people to stay at home. So far, we have managed to work around it," said Steffen Knapp, Director, Volkswagen Passenger Cars India.However, the company has had to shut its 120,000 square feet spare parts warehouse in Gurgaon, one of three in the country, after the local administration issued an advisory to shut down operations of offices and industrial units to contain the virus outbreak. Vehicle sales are also affected as some states have advised dealerships to suspend operations in the wake of the virus outbreak. While monitoring the constantly developing situation closely, Volkswagen and other industry peers would also brace themselves for some challenging times. "The customers have something else in their mind if it’s getting to their health, so they may not think of purchasing vehicles," said Knapp.● The Tesla factory in Fremont, California, US is remaining open, despite a "shelter in place" lockdown being issued for the area in which it's located. The plant, where the Model 3 is produced, has been deemed an essential business by Alameda County. According to the Los Angeles Times, Tesla boss Elon Musk has emailed the plant's 10,000 workers saying they can stay at home if they feel unwell or uncomfortable.Monday, March 16● Organizers of the 2020 South India Rally, which was supposed to be held on March 20-22, 2020, have confirmed that the event has now been postponed after considering the rising number of coronavirus (COVID-19) cases in India. The rally – which is supposed to double as the inaugural round of the 2020 Indian National Rally Championship (INRC) and the Asia-Pacific Rally Championship (APRC) – will now be held on June 19-21, 2020.● The UK government is in talks with major automotive manufacturers, including Ford and Honda, about producing ventilators for the NHS in their UK production facilities. The idea has precedent: in China, the car industry is already helping to battle the spread of coronavirus. Chinese carmaker BYD has created production lines at its Shenzen facility to produce face-masks and disinfectants. It says that it's producing 300,000 bottles of disinfectant and five million masks per day, making it the world's largest producer of the latter product.● The PSA Group will stage phased closures of all of its factories across Europe, including the Vauxhall plants at Ellesmere Port and Luton.● Ford has closed its factory in Valencia, Spain after three workers tested positive for COVID-19. In a statement, Ford said: “We have had three positive cases for COVID-19 on the Valencia site in 24 hours, two of which involved more isolated workers that did not enter the assembly operations. We are taking quick action to follow the established protocol, including the identification and self-isolation of all employees who had close contact with the affected workers. We will take all other appropriate steps to ensure that risk from this situation is minimized.”● Ford India said it is continuing to act in real-time to keep its "people safe and help limit the spread of the virus in communities where we live and work. Therefore, starting Monday, March 16, we have instructed much of our Indian workforce (over 10,000 people) including Ford India and Global Business Services – except those in business-critical roles that cannot be done away from Ford facilities – to work remotely until further notice."A PTI report has it that the Ford India spokesperson added, "All necessary safety measures have been deployed at Ford locations as well as our dealerships to ensure minimum inconvenience to customers."Sunday, March 15● Tata Motors' PR releases an 'internal memo' written by CEO and Managing Director Guenter Butschek. It reveals that the company has in place a three-tiered response plan to reduce the risk of coronavirus to its employees.● Fiat Chrysler Automobiles is closing the majority of its European plants until March 27, including six in Italy and those in Serbia and Poland. Ferrari will also close its Maranello factory, while Italian brake manufacturer Brembo is also shutting down.● The World Rally Championship event in Mexico was halted early so that the competing teams would have extra time to get home, given the increase in travel restrictions. The next event, Rally Argentina, has been postponed.Friday, March 13● Daimler postpones Annual Shareholders’ Meeting: An email to the media states that "After weighing all aspects, especially the health of all participants and after the order of the responsible health department, Daimler AG has decided not to hold the company’s Annual Shareholders’ Meeting as scheduled on April 1, 2020, but to postpone it to a later date in 2020."Thursday, March 12● The Australian Grand Prix was canceled by Formula 1 bosses just hours before the practice was due to begin on Friday, following McLaren's withdrawal from the race due to one of its team members testing positive for coronavirus.The decision by Formula 1 and the FIA, motorsport's governing body, was announced on Friday morning in Australia, with fans already queuing for admission to the street circuit in Albert Park, Melbourne. It was made after discussions between F1 bosses, the FIA, Australian Grand Prix organizers and the 10 teams over whether the event should proceed.A statement from Formula 1 and the FIA said, "This is very disappointing news for the thousands of fans due to attend the race and all ticket holders will receive a full refund and a further announcement will be communicated in due course."● Toyota Kirloskar Motor (TKM) has announced that in light of the current outbreak of the Coronavirus (COVID-19) and the fight against the pandemic, it has taken preventive measures to safeguard the health and safety of all stakeholders including customers, employees, and dealer partners. The OEM says it has been closely monitoring the evolving situation and responding appropriately by guidance issued by the government.Wednesday, March 11● The New York International Auto Show, originally slated to happen in April 2020, has been pushed back due to coronavirus concerns. The motor show will now be organized from August 28 to September 6, 2020. This ensures enough breathing space from the Detroit motor show which, this year, will run in June for the first time, having previously been held in January.● The Federation Internationale de Motocyclisme (FIM) has now confirmed that MotoGP’s upcoming round in Austin, USA has been postponed and will instead be held on November 13-15. Meanwhile, the Thai GP has been pushed to October 4. Formula E organizers have also suspended the series’ 2019/20 season for two months. This means that the races in Paris, Seoul, and Jakarta have also been postponed until further notice.Monday, March 2● Travel restrictions put into place as a result of the coronavirus (COVID-19) outbreak have forced the cancellation of all MotoGP class sessions at what was supposed to be the series’ 2020 season opener – the Qatar Grand Prix. All activities in the Moto2 and Moto3 classes, as well as in the Idemitsu Asia Talent Cup, carried on as planned since all the teams and riders were already in Qatar for the three-day official test at the Losail International Circuit.Friday, February 28● Five days before the 2020 Geneva Motor Show – billed as the biggest show on the global automotive calendar – was due to open to journalists on Tuesday, March 3, the organizer International Organization of Motor Vehicle Manufacturers (OICA) canceled the event. This was after several confirmed cases of COVID-19 in Geneva and other parts of Switzerland came to light. At the time, there was a substantial outbreak of the coronavirus, in northern Italy, with cases announced in several other European countries.