First-Time Homebuyer Assistance Programs for 2022 in Massachusetts

Last Updated on August 7, 2022 by Danielle McDonald

Mortgage Assistance for Homebuyers in Massachusetts

ONE+ Boston First Time Homebuyer Program

The Massachusetts Housing Partnership offers first-time homebuyers low-interest financing through the One Mortgage Program.

Available Assistance

The ONE Mortgage Program is for first-time homebuyers with low- or moderate incomes. It provides them with peace of mind. Assistance is provided in the form of a fixed-rate 30-year mortgage with a 3% down payment. This program does not require private mortgage insurance.

Eligibility Requirements

Applicants must be first-time homebuyers to qualify for the ONE Mortgage Program. Anyone who has owned a house in the past three years will not be eligible. The program has income limits and applicants must have completed a pre-purchase education course. They must also have less than $75,000 worth of household liquid assets, excluding retirement accounts like 401K or 403B accounts. If purchasing a condo, single-family, or two-family property they must be able and able to pay a down payment of 3%. At least 1.5% of this amount must come from their savings. For a three-family property, the down payment required is 5%. At least 3% must come from their savings. The property must be the borrower’s primary residence if it is purchased using funds from the ONE Mortgage Program.

MassHousing Down Payment Assistance

MassHousing expanded its Down Payment Assistance Program in Massachusetts to assist first-time homebuyers. This program provides assistance funds to cover the initial costs of purchasing a home.

Available Assistance 

MassHousing offers down payment assistance of up to 5% of purchase price, or $15,000 if less. These funds are available to eligible applicants in the form a fixed-rate, 15-year loan at 2% interest. The assistance loan is due upon the sale or refinance (or both) of the property before the end of its 15-year term.

Eligibility Requirements 

MassHousing Down Payment Assistance is only available to first-time homebuyers. All applicants must be within the maximum income limits of the MassHousing Down Payment Assistance program. First-time homebuyers in Massachusetts or any of the 26 Gateway Cities of the Commonwealth may earn upto 135% of the area median (AMI) while those in Boston and the other Gateway Cities of the Commonwealth can earn as much as 100%.

Program funds allow applicants to buy single-family homes and condominiums as well as 2-, 3-, or 4-family properties.

This programme is quite similar to the First-Time Homebuyer Assistance Programs in Maryland.

City of Brockton First Time Homebuyer Program

First-time homebuyers who are eligible for down payment assistance from the City of Brockton can receive it if they purchase a one- or two-family home within city boundaries.

Available Assistance 

Eligible applicants can receive a maximum of $15,000 in financial assistance from the City of Brockton FTHP through a zero interest deferred loan. The loan amount can be repaid in the event that property ownership is transferred or loan refinanced. The amount of assistance required at closing the mortgage is what determines applicant approval. Funds are not guaranteed.

First-time homebuyers who are income eligible will be offered a zero-interest deferred loan of 3.5% on the purchase price (upto $12,000). Additional funds may be available from the NHS up to 25% of the City’s amount (up to $3,000).

City of Lowell HOME Program

Lowell offers down payment assistance to income-eligible homebuyers in order to help them realize their dream of owning a house.

Eligibility Requirements 

The City of Lowell HOME program requires applicants to be first-time homebuyers. This means they must not have owned a house in the last three years. Veterans are exempted from this requirement. However, they do not have to meet the first homebuyer requirement. All applicants must have a valid Social Security Number and their total debt to income ratio not exceed 45%. Prospective buyers must have at least 1-1/2% of their funds, and pay a $205 mortgage recording fee. The property must also be within Lowell’s city limits

Income Limits 

  • 1-person household: $55,950 
  • 2-person household: $63,950 
  • 3-person household: $71,950 
  • 4-person household: $79,900 
  • 5-person household: $86,300 
  • 6-person household: $92,700 
  • 7-person household: $99,100 
  • 8-person household: $105,500 

City of Cambridge Down Payment Assistance

Cambridge provides closing cost and down payment assistance for income-eligible first-time homebuyers who are purchasing a home in the city. The buyers may qualify to receive up to 6% assistance of the purchase price.

Available Assistance 

This assistance is a forgivable loan. Only 20% of the loan is forgiven annually over a 5 years, provided that the buyer must use the home as their exclusive residence.

Eligibility Requirements 

All applicants for the Down Payment Assistance Program must be first-time homebuyers, and finish a first-time homebuyer workshop. They must also show a need for assistance, and use all resources available. Additionally, every applicant must buy a single-family home, condominium, or a two- or three-family home within the City of Cambridge as their primary residence.

Income Limits 

  • 1-person household: $70,750 
  • 2-person household: $80,850 
  • 3-person household: $90,950 
  • 4-person household: $101,050 
  • 5-person household: $109,150

City of Springfield Down Payment Assistance

Many potential homebuyers typically have difficulty saving enough money to pay a down payment or cover closing costs. Fortunately, Springfield’s Office of Housing provides help to overcome this hurdle through its own Down Payment Assistance Program.

Available Assistance 

The Down Payment Assistance Program of the City of Springfield offers income-eligible homebuyers a $4,000 zero-interest loan that is forgiven in full in 5 years. These funds are used to pay the down payments or closing costs. They are then dispersed at closing. However, if the homeowner sells, refinances or transfers title to the property, prorated loan repayment is required.

Eligibility Requirements 

Every applicant must have a household income of at least 80% of the area median income, as determined annually in HUD, in order to be considered eligible for the program. They must also contribute at least 1% of the sale price from their own funds, and must meet other underwriting criteria. The maximum LTV ratio is 103% and the debt-to-income ratio should not exceed 45%. Additionally, applicants must attend and finish a Homebuyer Education Program from an HUD certified housing counselor at an HUD-approved housing counseling agency.

Furthermore, all homes purchased using program funds must be in Springfield, and must be the primary residence of the applicant.  

Income Limits 

  • 1-person household: $47,850 
  • 2-person household: $54,650, 
  • 3-person household: $61,500 
  • 4-person household: $68,300 
  • 5-person household: $73,800 
  • 6-person household: $79,250 
  • 7-person household: $84,700 
  • 8-person household: $90,200 

City of Worcester Down Payment Program

The Down Payment Assistance Program of the City of Worcester offers income-qualified homebuyers assistance for the down payment and closing costs.

Available Assistance 

Applicants with low- to moderate-income can receive up to $5,000 in closing cost assistance and down payment assistance. This is in conjunction with the Worcester’s Down Payment Assistance program. It is a federally funded program through HUD Community Development Block Grant funding.

Eligibility Requirements 

The Down Payment Program is only available to first-time homebuyers. Therefore, it is a person who has never owned a home within the last three years before applying for assistance funds. All applicants must also have a household income of at most or below 80% of the City of Worcester’s Area Median Income. Furthermore, applicants must attend and finish an HUD-certified Massachusetts Homeownership accredited housing education workshop to be eligible for the assistance funds.

Property Guidelines 

The home must have been empty or owner-occupied (the seller’s household only) for three months prior to the date of the purchase offer. It must also remain vacant or owner-occupied until the close of escrow. The eligible property types are new and resale single, double, three, and four-family homes, townhouses, or condominiums. The foundation must be poured before the seller receives the buyer’s offer to purchase a new construction. Additionally, the purchase price must not be over 95% of the median area price for a single-family housing.

Every property bought with program funds must comply with all applicable State and local building codes, zoning regulations, health and safety codes and ordinances. Moreover, flood insurance is required if the property is located in a 100-year flood zone.

Income Limits 

  • 1-person household: $54,950 
  • 2-person household: $62,800 
  • 3-person household: $70,650 
  • 4-person household: $78,500 
  • 5-person household: $84,800 
  • 6-person household: $91,100 
  • 7-person household: $97,350 
  • 8-person household: $103,650

Operation Welcome Home

MassHousing launched Operation Welcome Home to assist members of the Reserves and National Guard, active-duty military personnel, Veterans and Gold Star Families in obtaining affordable home financing. Additionally, this program provides loans with flexible underwriting, and down payment assistance for eligible homebuyers.

Available Assistance

Operation Welcome Home offers qualified applicants closing cost assistance up to $2,500. This can be in conjunction with a down payment assistance loan up to $15,000 or 5% of total sale price (whichever is lower).

Eligibility Requirements

Operation Welcome Home is open to all active duty military personnel, honorably discharged veterans, members of the Reserves or National Guard, and Gold Star Family members. All applicants also need to be a first-time homebuyer to be eligible for down payment assistance. However, there is an exception if they’re buying a home in Boston, Chelsea, Cambridge, Cambridge, Everett, Fall River, Lawrence, Lynn, North Adams or Somerville. They must also have an annual household income within the average median income (limits shown below). Furthermore, the home they are purchasing must be a 1- to 4-family property within Massachusetts (condominiums are qualified).

Income Limits

  • Barnstable County: $90,200
  • Berkshire County: $67,200
  • Bristol County: $72,100
  • Dukes County: $87,000
  • Essex County: $103,400
  • Franklin County: $80,000
  • Hampden County: $66,600
  • Hampshire County: $66,000
  • Middlesex County: $103,400
  • Nantucket County: $99,500
  • Norfolk County: $103,400
  • Plymouth County: $103,400
  • Suffolk County: $103,400
  • Worcester County: $85,700

Are you interested in the First-Time Homebuyer Assistance Programs in Michigan?

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