Massachusetts First-Time Homebuyer Assistance Programs

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Despite being one of the 13 original colonies, historic Massachusetts has all-too-contemporary real estate prices. As of February 2025, homes were selling for a median price of $614,000, according to Redfin — making it one of the most expensive states to buy property in.

Luckily, first-time homebuyers in Massachusetts have access to quite a few low-interest loans and other programs that can help make homeownership more affordable. There are options available through MassHousing, a quasi-public agency charged with providing affordable housing financing, as well as another nonprofit, the Massachusetts Housing Partnership (MHP).

Massachusetts first-time homebuyer programs

MassHousing Mortgage

Well-suited to first-time homebuyers, MassHousing is a not-for-profit that sells bonds, using the profits to fund loans for low- to moderate-income borrowers. It offers conventional mortgages and FHA loans with fixed interest rates, plus a down payment assistance program. Minimum credit scores range from 640 to 700.

In addition, every MassHousing Mortgage loan includes MI Plus, a type of mortgage payment protection that covers your loan’s principal and interest in the event of a job loss. MI Plus covers payments for as long as six months, and up to $4,000 per month.

• Requirements
  

  • Must meet credit and other eligibility requirements as determined by mortgage lender
  • Must complete homebuyer education course
  • Must meet MassHousing income limits
  • Must work with an approved lender
  • Must be a single- to four-family home, or condominium
  • Must be your primary residence

• Pros and cons
  

  Pros

  • More affordable interest rates
  • More than 80 participating lenders
  • Open to multi-family properties

  Cons

  • Requires repayment on a monthly basis
  • Limited property types

Massachusetts Housing Partnership ONE Mortgage

The Massachusetts Housing Partnership offers a 30-year fixed-rate loan — the ONE Mortgage — for low- and moderate-income first-time homebuyers. There is no private mortgage insurance requirement for this loan, and extra assistance is available to help lower your monthly payments.

• Requirements
  

  • 3 percent down payment
  • 640 minimum credit score for single-family home or condo; 660 minimum credit score for two- or three-family home
  • Assets can’t exceed $75,000, excluding college or retirement savings
  • Must complete homebuyer education class
  • Must meet MHP income limits
  • Must be primary residence
  • Must be a single- to three-family home, or condominium

• Pros and cons
  

  Pros

  • More affordable interest rates
  • No mortgage insurance required
  • Open to condos, townhomes

  Cons

  • Requires repayment on a monthly basis
  • Limited property types

Massachusetts down payment assistance

MassHousing Down Payment Assistance program

MassHousing provides first-time homebuyers with down payment assistance (DPA) in the form of a second mortgage. The assistance comes in two forms:

• An interest-free, deferred loan that only needs to be repaid when the original mortgage ends
• A 15-year, amortizing loan with a fixed interest rate of 2 percent

The DPA must be used in conjunction with a MassHousing mortgage, and has the same requirements, including area-specific income limits.

• Pros and cons
  

  Pros

  • Repayment deferred until you sell the home
  • Low or no interest rates
  • Open to condos, townhomes

  Cons

  • Second mortgage is subject to first loan mortgage eligibility
  • Amortizing option has a slightly lower maximum funding amount

City-specific homebuyer assistance programs

Boston First-Time Homebuyer Program

The City of Boston offers eligible homebuyers a grant of 5 percent of the purchase price plus closing costs. If you make less than 135 percent of the average median income (AMI), the grant maxes out at $30,000. If you make 100 percent of the AMI or less, you could receive up to $50,000 in grant funds.

• Requirements
  

  • Be a first-time homebuyer buying a one- to three-family residential property or condo in Boston
  • Have the property as your primary residence
  • Graduate from a Homebuying 101 class
  • Get preapproved by a participating lender
  • Have a household income less than 135 percent AMI
  • Have less than $100,000 in assets

• Pros and cons
  

  Pros

  • Open to one- to three-family properties, condos, townhomes or planned unit developments (PUD)
  • Doesn’t require repayment

  Cons

  • Can only be used for down payment

Worcester Down Payment Assistance Program

For first-time homebuyers in Worcester, there’s a down payment assistance program that will help you with up to $5,000 in down payment and closing cost assistance.

• Requirements
  

  • Be a first-time homebuyer with a household income at or below 80 percent of the AMI
  • The property must be located within the City of Worcester and meet HUD’s habitability standards
  • Complete an approved first-time homebuyer certification course before closing
  • Must apply at least 45 days before closing

• Pros and cons
  

  Pros

  • Open to multi-family properties, plus condos and townhomes

  Cons

  • Your total liquid assets cannot exceed $75,000 or 20 percent of the final home sale price

Other Massachusetts first-time homebuyer loans

On a national level, there are loans geared toward first-time homebuyers that Bay Staters can take advantage of. Some of the loans you can explore include:

• FHA loans: Loans insured by the Federal Housing Administration (FHA) have more lenient financial requirements than other loans. You can get an FHA loan with 3.5 percent down and a credit score as low as 580.
• VA loans: For active-duty military, veterans and surviving spouses, a loan guaranteed by the U.S. Department of Veterans Affairs (VA) is a great option. These loans typically come with lower interest rates and don’t require a down payment.
• USDA loans: Loans guaranteed by the U.S. Department of Agriculture (USDA) also require no down payment, but you’ll need to buy in a designated rural area and meet area-specific requirements.
• HomeReady and Home Possible loans: HomeReady and Home Possible are loan programs created by government-sponsored enterprises Fannie Mae and Freddie Mac. They’re specifically for first-time homebuyers, requiring only 3 percent down and having more flexible income requirements.

Get started

MassHousing works with over 80 mortgage lenders in the state. MHP also maintains a list of participating lenders offering the ONE Mortgage. Keep in mind that lender requirements and interest rates in Massachusetts vary, so it’s important to compare options and fees before you commit to a loan offer.

Along with Massachusetts-specific programs, researching national first-time homebuyer programs may help you access extra assistance. Also, it’s smart to learn about the details of buying a house in Massachusetts (like current homeowners insurance costs) before you go shopping. This way, you’ll know what to expect and make a more-informed purchase.