Massachusetts first-time homebuyer grants and down payment assistance (2026)

MassHousing’s three down payment options and what each costs

All three options are second mortgages that you must pay off when you sell, refinance or pay off the first mortgage. They can be used in every city and town ⁠¹. The approved lender decides which option and amount you qualify for ⁠¹.

Scroll the table sideways to see every column.

MassHousing’s L-101 limit form says the 2% or 3% rate is set by your income relative to area median income ⁠³. Payment figures are MassHousing’s own examples ⁠¹.

Workforce Advantage carries extra perks. MassHousing pays the mortgage insurance premium on the conventional version, and a one-unit purchase has no minimum contribution from your own funds ⁠². Its FHA version does not cover the upfront FHA premium ⁠². MassHousing will not subordinate any of these second mortgages, so a later refinance means paying the assistance off ⁠².

Two smaller benefits stack on top. Veterans, National Guard and Reserve members, active-duty service members and Gold Star families can get a $2,500 closing cost credit ⁠¹⁴. MassHousing-insured conventional loans include MI Plus, which pays up to $4,000 a month for up to six months if you lose your job ⁠¹⁴. MassHousing also lets you combine its help with local programs and with the Federal Home Loan Bank of Boston’s Equity Builder grants offered through member banks ⁠¹⁴.

No mortgage credit certificate. MassHousing’s June 15, 2026 product matrix lists first mortgages and three down payment loans, and no Mortgage Credit Certificate ⁠². Massachusetts buyers should not expect an MCC tax credit from the state agency.

The interest-free $25,000 that ended with July 2, 2026 locks

On March 27, 2026, MassHousing announced a temporary 0% deferred $25,000 loan for first-time buyers up to 135% of AMI. It replaced the 2% and 3% loans for locks from April 27 through July 31, 2026 ⁠⁴. Demand ended it early. MassHousing’s June 24 notice said it would accept no lock requests after July 2, 2026. The 15-year 2% and 3% loans came back on July 6, 2026 ⁠⁵. Buyers who locked before the cutoff kept the deferred loan. As of October 20, 2026, MassHousing had posted no new deferred round for buyers above Workforce Advantage limits ⁠⁵.

MassHousing income limits by county, effective June 15, 2026

MassHousing has no purchase price limit on its FTHB FHA or HFA Preferred / HFA Advantage loans ⁠². Your loan amount is capped instead by the Fannie Mae and Freddie Mac conforming limit, $832,750 for a one-unit home in most counties in 2026, or the lower FHA limit on FHA loans ⁠²⁠¹³. Income is what limits most buyers. There are two separate tables:

• 135% of AMI for FTHB FHA and HFA Preferred / HFA Advantage Above 80% AMI. There is one figure per county, not by household size ⁠³.
• Workforce Advantage limits by household size and town. They count the combined income of everyone who will live in the home ⁠³.

Within Middlesex, Essex, Norfolk, Plymouth, Bristol and Worcester, the Workforce Advantage limit depends on the town. In Middlesex, for example, Lowell and Billerica use $85,800 for four people while Cambridge and Framingham use $102,840. Find your town on MassHousing’s Form L-101 WFA ⁠³.

Credit score, 45% DTI and MassHousing’s ownership rules

Every MassHousing first mortgage, conventional or FHA, requires a 640 credit score and allows a debt-to-income ratio of up to 45% ⁠². MassHousing does not allow non-occupying co-borrowers or co-signers ⁠². You cannot own any other real estate at closing, and you must live in the home for the life of the loan ⁠²⁠¹⁵. Lenders pull three years of tax transcripts for every borrower ⁠¹⁵. Two- to four-unit homes are allowed. For 2- to 4-unit conventional loans you must put in 3% of your own money and take a landlord course ⁠².

MHP’s ONE Mortgage has separate rules. It requires 640 for a single-family home or condo and 660 for a two- or three-family home. It has options for buyers with no credit history. Household assets must be under $100,000, not counting most retirement and college savings ⁠⁸. You put 3% down, at least 1.5% from your own savings, or 5% down on a three-family ⁠⁸. ONE+ adds a rate discount and down payment help for current residents of 29 cities, including Worcester, Springfield, Lowell, Brockton, Lawrence, Framingham and Randolph ⁠⁸. ONE+Boston’s income limit for four people was $165,400 as posted in January 2026 ⁠⁹. MHP says ONE Mortgage first-time buyers must not have owned a home in the last three years ⁠⁸.

Homebuyer education: MassHousing agencies vs. Boston’s CHAPA class

MassHousing requires a homebuyer education course for first-time buyers. On Workforce Advantage loans, the course must come from a MassHousing-approved counseling agency ⁠². MassHousing’s list has 39 agency listings, including the Boston Home Center, Way Finders in Springfield, RCAP Solutions in Worcester, and Housing Assistance Corp. in Hyannis. You do not have to take the class in the town where you are buying ⁠⁶. Boston’s grant requires a CHAPA-approved Homebuying 101 class ⁠¹⁰. Springfield requires a course from a HUD-certified counselor at a HUD-approved agency ⁠¹¹. One certificate from an agency on both lists can cover both, so check before you enroll.

Boston, Springfield and Worcester money on top of the state loan

• Boston, First-Time Homebuyer Program. Households below 100% of AMI get up to 3% of the price plus eligible closing costs, up to $50,000. Households at 101% to 135% get up to 2%, up to $35,000. A deed-restricted home gets up to 2%. Boston residents get a grant. Since September 15, 2026, buyers moving in from outside Boston get a 0% deferred loan, due on sale, refinance or transfer. To qualify you need household assets under $100,000, no home owned in the past three years, a Boston one- to three-family home or condo, and a participating lender. The loan must fit Fannie Mae limits ⁠¹⁰.
• Springfield, Down Payment and Closing Cost Assistance Program. The March 17, 2026 application describes a $7,500 loan at 0%. It is forgiven 20% a year in years 6 through 10 if you keep living in the home, and you repay a prorated share if you sell or refinance earlier. The income limit is $96,200 for four people (limits dated June 1, 2025). You need at least 1% of your own funds ⁠¹¹. The city web page lists $10,000 to $20,000 instead and warned that funds would likely not be available before August 7, 2026. Confirm the amount with the Office of Housing ⁠¹¹.
• Worcester, Down Payment Assistance Program. Up to $5,000 in Community Development Block Grant money for first-time buyers. You need mortgage pre-approval, and the home must be in the city and in habitable condition ⁠¹².

Boston’s grant can be combined with a MassHousing or ONE+Boston loan, but each program sets its own limits ⁠⁹⁠¹⁴.

Getting a MassHousing loan with down payment help, step by step

1. Check your county limit

   Find your town on Form L-101 WFA for the $30,000 deferred loan. If your income is higher, use the 135% AMI column ⁠³.

2. Take an approved class early

   Pick an agency from MassHousing’s list. If you plan to use Boston money, choose a class that is also CHAPA-approved ⁠⁶⁠¹⁰.

3. Run the Eligibility Quick Check

   It connects you with a MassHousing-approved lender or broker. MassHousing lists dozens of approved banks, credit unions, mortgage companies and brokers ⁠⁷.

4. Gather documents

   You need pay stubs and W-2s for everyone in the household, three years of tax transcripts, bank statements, and your education certificate ⁠¹⁵.

5. Lock both loans together

   Your lender locks the first mortgage and the down payment loan in MassHousing’s system. The terms in effect on your lock date apply ⁠⁵.

6. Apply for city money after pre-approval

   Boston and Springfield want a pre-approval and a signed offer or Purchase and Sale agreement. Springfield funds are paid at closing ⁠¹⁰⁠¹¹.

7. Close and keep the second-mortgage note

   You owe the down payment loan balance when you sell or refinance ⁠¹.

If a lender turns you down, another MassHousing-approved lender can review the file. Underwriting exceptions go through the lender to MassHousing ⁠¹⁵. Other states’ programs are on the first-time homebuyer grants page.