Purchasing your first home can be exciting but daunting, especially in Massachusetts, where housing costs and competition can feel insurmountable. With a median home price of $949,000 in Metro Boston, many first-time buyers face challenges entering the market. It is no surprise that many first time homebuyers cannot afford this price tag. Fortunately, Massachusetts offers several programs designed to assist first-time home buyers, including down payment assistance, low-interest mortgages, and city-specific initiatives. Here’s everything you need to know about these programs, how to qualify, and how they can help you achieve homeownership.
Down Payment Assistance in Massachusetts
One of the biggest hurdles for first-time buyers is the down payment. Fortunately, Massachusetts provides a range of programs to help bridge the gap. While the state does not offer a mortgage credit certificate (MCC) program, it has several options to assist with down payments and closing costs.
Down Payment Assistance Program | MassHousing
MassHousing offers generous down payment assistance for eligible first-time buyers:
- Eligibility: Buyers in Gateway Cities earning up to 135% of the area median income (AMI) or other areas earning up to 100% of the AMI.
- Benefits: Up to 5% of the purchase price or $15,000 in assistance.
- Repayment: A 15-year loan at a 2% fixed interest rate, repayable upon sale or refinancing.
Contact Information:
MassHousing
1 Beacon St, Boston, MA 02108
(617) 854-1000
Operation Welcome Home | MassHousing
For veterans, active-duty military, Gold Star families, and National Guard members, this program offers:
- Up to $3,000 in closing cost assistance.
- The option to combine with MassHousing’s down payment assistance for additional support.
Contact Information:
MassHousing
1 Beacon St, Boston, MA 02108
(617) 854-1000
First-Time Home Buyer Loans in Massachusetts
Down payment assistance programs are just one part of the puzzle. Massachusetts also offers mortgage options tailored for first-time buyers.
MassHousing Mortgage | MassHousing
This mortgage program includes:
- Competitive fixed interest rates.
- Low down payments.
- MI Plus Mortgage Insurance: Covers principal and interest payments for up to six months (up to $2,000/month) if you lose your job within the first 10 years.
Contact Information:
MassHousing
1 Beacon St, Boston, MA 02108
(617) 854-1000
One Mortgage | Massachusetts Housing Partnership
The One Mortgage program is a favorite among first-time buyers:
- Features: 30-year fixed-rate loan with no private mortgage insurance (PMI) and only a 3% down payment.
- Income Limits: Household income cannot exceed 100% of the AMI (e.g., $79,310 for a one-person household in Suffolk County).
- Interest Subsidy: State-funded subsidy for buyers earning below 80% of the AMI, lowering monthly payments for the first 7 years.
Contact Information:
Massachusetts Housing Partnership
160 Federal St #2, Boston, MA 02110
(617) 330-9955
Nationwide First-Time Home Buyer Loans
If state programs don’t meet your needs, you can explore federal options:
- VA Loans: For veterans and military families, offering no down payment and no PMI.
- FHA Loans: Require a 3.5% down payment but include mortgage insurance premiums.
- USDA Loans: No down payment required for rural and semi-rural areas.
- HomeReady (Fannie Mae) & Home Possible (Freddie Mac): Conventional loans requiring just 3% down.
First-Time Home Buyer Programs in Boston
Boston’s high housing costs necessitate tailored solutions. One of the most popular options is the ONE+Boston loan program.
ONE+Boston First-Time Home Buyer Loan | Boston Home Center
This program offers:
- Interest rates 0.5% to 1% lower than those of standard ONE Mortgage loans.
- Up to 5% down payment assistance through the Boston Home Center.
- Eligibility based on income, assets, and purchase location.
Contact Information:
Boston Home Center
26 Court St #9, Boston, MA 02108
(617) 635-4663
MA First Time Homebuyer Grants
There’s a variety of down payment and closing cost assistance programs both nationwide and local to Massachusetts. Your real estate agent or loan officer can help you find programs for which you might be eligible.
Massachusetts Gateway Cities Down Payment Program:
- Across most of Massachusetts, you can get up to 10% of your purchase price, up to either $50,000 or $30,000, depending on where you’re buying
- If you’re buying in one of the Commonwealth’s 26 “Gateway Cities,” the cap is still 5% of your purchase price, but increases to a maximum of $25,000
Gateway Cities that allow higher DPA amounts include:
- Attleboro, Barnstable, Brockton, Chelsea, Chicopee, Everett, Fall River, Fitchburg, Haverhill, Holyoke, Lawrence, Leominster, Lowell, Lynn, Malden, Methuen, New Bedford, Peabody, Pittsfield, Quincy, Revere, Salem, Springfield, Taunton, Westfield, and Worcester
Aside from those details, the MassHousing website provides very little information about its DPA options. So they might be grants, forgivable loans, or repayable loans
Boston First Time Home Buyers Programs
The median list price in Boston was $950,000 in September 2024. That held flat year-over-year, according to Realtor.com.
If you want to buy a home at that median price, your down payment options might fall between:
- $28,500 for 3% down payment
- $190,000 for 20% down payment
The Boston Home Center can lend up to 5% of your home’s purchase price in down payment assistance. That’s capped at $50,000 if your income is less than 100% of the area median income (AMI), or $35,000 if your income is between 101% and 135% of the AMI. For a family of four living in Boston, that’s a household income of $111,850, according to the website.
This DPA loan charges no interest and you don’t have to make monthly payments. But you will have to repay it in full when you refinance, transfer the title, sell the home, or when you no longer live there as your primary residence.
Worcester First Time Home Buyers Programs
The median list price in Worcester was $427,900 in September 2024. That increased 7% year-over-year, according to Realtor.com.
If you want to buy a home at that median price, your down payment options might fall between:
- $12,837 for 3% down payment
- $85,580 for 20% down payment
The City of Worcester’s Housing and Grants program lets you download a pdf concerning its guidelines and down payment assistance offering. Borrowers can get up to $5,000 in help to cover the “affordability gap,” providing they’re income eligible. You should read that for all the information you need.
This assistance takes the form of a forgivable second mortgage. That means you don’t make monthly payments or pay interest. But you’ll have to repay the loan, plus interest, if “the property is sold or transferred in full or part, (including refinances) during the first three (3) years of ownership, or upon a default under the conditional agreement (for example the borrower’s failure to occupy the home as their primary residence).”
As long as you don’t sell, refinance, or move within three years, you won’t owe a cent on that loan.
Springfield First Time Homebuyers Programs
The median list price in Springfield was $289,900 in September 2024. That jumped 6.4% year-over-year, according to Realtor.com.
If you want to buy a home at that median price, your down payment options might fall between:
- $8,697 for 3% down payment
- $57,980 for 20% down payment
The City of Springfield’s down payment program offers up to $4,000 in financial help. You can put that toward your down payment or some of your closing costs.
As with Worcester’s program, this takes the form of a forgivable second mortgage. So there are no monthly payments nor any interest charges.
But, in Springfield’s case, the loan is forgiven over five years at a rate of 20% each year. If you sell, refinance or move out during those five years, you’ll have to repay the outstanding portion. For example, 80% after the end of year 1 or 20% after year 4. After year 5, you owe nothing.
Click the link above to read the full legal version of that summary, plus other conditions and eligibility criteria. You’ll need to be in a low-income or moderate-income household to qualify.=
Where to Find More Help Buying Your First Home In Massachusetts
All the organizations we’ve listed above should provide advice freely to any first-time home buyer in the commonwealth of Massachusetts or their local area.
In addition to our selection, the U.S. Department of Housing and Urban Development (HUD) provides a few lists of statewide, regional, and local resources:
Statewide and regional first-time home buyer programs in Massachusetts
- MassHousing: Provides affordable mortgage financing to low- and moderate-income homebuyers
- MassHousing Mortgage
- Massachusetts Department of Housing and Community Development: Mortgage, down payment and closing cost information for first-time homebuyers
- Massachusetts Housing Consumer Education Centers: Find a center nearest you that offers homebuyer classes
- Massachusetts Housing Partnership: ONE Mortgage Program for first-time homebuyers
- Massachusetts Housing Partnership local income-eligibility caps
- Habitat for Humanity: Through volunteer labor, builds and rehabilitates houses for families in need
- U.S. Department of Agriculture Rural Housing: Homebuyer programs in rural communities
Massachusetts First-Time Home Buyer FAQs
Who is considered a first-time home buyer in Massachusetts?
Typically, you are considered a first-time buyer if you haven’t owned a home in the past three years.
Do I have to pay back down payment assistance in Massachusetts?
In most cases, repayment is only required if you sell or refinance your home.
What programs are available for first-time home buyers in Massachusetts?
From MassHousing’s low-interest mortgages to One Mortgage’s interest subsidy, Massachusetts offers numerous resources to make homeownership more accessible.
Buying your first home in Massachusetts can feel challenging, but these programs make it possible to achieve your dream of homeownership. When you’re ready to move, rely on the trusted professionals at Mastodon Movers to make your transition seamless. Reach out today to plan your stress-free move!
