The state of Massachusetts and privately funded organizations offer various first-time homebuyer assistance programs. These initiatives make purchasing their first home attainable for many middle—and working-class Massachusetts residents.
From down payment assistance to special mortgage loans, here’s a comprehensive list of the top assistance programs available for first-time homebuyers in the Bay State.
1. MassHousing Mortgage Program
The MassHousing Mortgage program is a fixed-rate loan designed for low- and moderate-income homebuyers. It offers competitive interest rates and includes the MI Plus mortgage insurance, which covers your mortgage payments for up to six months if you lose your job.
- Down Payment Assistance: Up to $30,000 in all cities; stackable with local and Federal Home Loan Bank programs.
- Loan Types: Offers both Conventional and FHA loans with fixed rates and no hidden fees.
- MIPlus Job-Loss Protection: Covers up to six months, $4,000 per month, in mortgage payments if borrower loses their job.
- Veterans Credit: Provides a $2,500 closing cost credit for veterans, active military, Guard, Reserves, and Gold Star families.
- Renovation Financing: Allows buyers to combine purchase and renovation into a single loan, simplifying the financing process.
- Flexible Requirements: Lower income and credit score requirements to expand eligibility for first-time homebuyers in Massachusetts.
- Homebuyer Education: Buyers must complete a MassHousing-approved course to qualify for assistance.
2. MassHousing Down Payment Assistance Program
This program provides first-time buyers with down payment assistance of up to 10% of the home’s purchase price, with a maximum of $50,000 for certain communities and $30,000 for others.
Eligibility:
- Must be a first-time homebuyer
- Use with a MassHousing mortgage
- Income limits based on location
Benefits:
- Interest-free deferred loans
- Assistance covering a portion of the down payment and closing costs
Related: Affordable And Safe Places To Live In Massachusetts
3. ONE Mortgage Program
The ONE Mortgage Program is one of the most affordable loan options for first-time homebuyers in Massachusetts. It offers low-interest fixed-rate loans without requiring private mortgage insurance (PMI), saving you money every month.
- Down Payment: 3% for condos, single-family, and two-family homes; 5% for three-family properties; assistance can include gifted funds.
- Interest Rates: Offers some of the lowest fixed rates for 30-year loans, designed for affordability without rate surprises.
- No PMI Requirement: No Private Mortgage Insurance needed, saving homeowners on monthly costs.
- Extra Payment Assistance: Subsidies available to qualified borrowers to further reduce monthly payments.
- Income and Asset Limits: Total household income must meet program limits (varies by location and household size); assets must be below $75,000, excluding retirement and college funds.
- Credit Score Requirements: Minimum credit score of 640 for single-family or condo purchases; 660 for two- and three-family homes.
- Residency Requirement: Must be a primary residence. If moving out, refinancing is required.
- Section 8 Assistance: Accepts Housing Assistance Payments (HAP) toward mortgage payments for eligible Section 8 voucher holders.
4. Massachusetts Affordable Housing Alliance (MAHA) STASH Program
The program, created by the Massachusetts Affordable Housing Alliance (MAHA), offers matched savings for first-generation homebuyers to help make homeownership affordable and sustainable.
Matched Grant
- First-generation buyers can receive up to $40,000 in Boston, $20,000 outside Boston, and $25,000 in Salem, used toward condos, single-family, or multi-family homes.
Program Requirements:
- Complete a CHAPA Certified First-Time Homebuyer Class.
- Save a minimum of $3,000, commit to saving an additional $2,000.
- Attend 8 hours of financial literacy and post-purchase seminars within a month.
Eligibility:
- First-generation homebuyer with no parental or spousal family homeownership history.
- Annual household income of at least $45,000.
- Total household income must be at or below 100% of the area median income.
- Liquid assets must be less than $75,000 (excluding retirement accounts).
Grant Use:
- Funds can cover down payments, closing costs, reduce loan amounts, or lower interest rates, with funds forgiven at issuance.
For more information, contact Anthonina Fenelon, Director of STASH, at afenelon@mahahome.org or 857-301-7062.
5. City of Boston First-Time Homebuyer Program
This program offers grants to help first-time homebuyers in Boston with their down payments. The grant covers 5% of the purchase price, up to $50,000, depending on income level.
Down Payment Assistance Grant:
- Up to 5% of purchase price, capped at $50,000 for income <100% AMI, $35,000 for 101-135% AMI.
Eligibility:
- Must buy a 1-3 family property or condo as primary residence.
- Must be a first-time homebuyer (no property ownership in past 3 years).
Education Requirement:
- Complete the Homebuying 101 course through the Boston Home Center.
Mortgage Pre-Approval:
- Secure pre-approval from an approved lender; loan must meet Fannie Mae limits.
Income and Asset Limits:
- Household income <135% AMI; assets < $75,000.
6. Federal Home Loan Bank of Boston Equity Builder Program (EBP)
The EBP offers grants of up to $29,000 for down payment and closing cost assistance. The program is available to low- and moderate-income first-time buyers who earn up to 80% of the area median income.
Eligibility:
- Income must be within 80% of the AMI
- Minimum borrower contribution of $500
Benefits:
- Generous grant to reduce upfront costs
- Homebuyer education and counseling included
7. Federal Home Loan Bank of Boston Housing Our Workforce (HOW) Program
The HOW Program is designed for homebuyers earning between 80% and 120% of the area median income. The program provides grants of up to $25,000 for down payment and closing cost assistance.
Eligibility:
- Household income between 80% and 120% of AMI
- Minimum borrower contribution of 3%
Benefits:
- Large down payment assistance
- Tailored for workforce households
8. My Mass Home Workforce Advantage Program
Workforce Advantage is an initiative that helps first-time homebuyers earning up to 80% of AMI with down payment assistance and other benefits, aimed at increasing purchasing power for working families.
Eligibility:
- Household income up to 80% of AMI
- Purchase of a single-family home, condo, or two-family property
Benefits:
- Up to $50,000 in down payment assistance
- Designed to boost purchasing power for working families
9. MassHousing Purchase and Renovation Loan
For those looking to buy a fixer-upper, the MassHousing Purchase and Renovation Loan allows buyers to combine the costs of purchasing and renovating a home into one mortgage.
Eligibility:
- First-time homebuyer
- Must meet MassHousing income limits
- Amount borrowed for renovation must be at least $10,000
Benefits:
- Combines purchase and renovation costs into one mortgage
- Makes renovating affordable for low- to moderate-income buyers
10. Worcester Down Payment Assistance Program
This program offers down payment assistance of up to 3.5% of the purchase price, or up to $25,000, for eligible first-time homebuyers in Worcester.
Eligibility:
- Must meet income requirements based on AMI
- Available for properties in Qualified Census Tracts or for low-income buyers
Benefits:
- Covers a significant portion of the down payment
- Designed to help first-time buyers in Worcester’s housing market
State, Municipal, And Private First-Time Homebuyer Assistance Programs
Buying your first home in Massachusetts can be challenging, but with so many programs and resources available, it’s possible to make homeownership more affordable.
From grants to low-interest loans, there’s something for everyone. Make sure to research your options, meet eligibility requirements, and consider stacking multiple programs for the best deal.
