First-Time Homebuyer Programs in Massachusetts

Down Payment Assistance Programs

• MassHousing Mortgage with No-PMI Option. MassHousing's flagship 30-year fixed-rate first mortgage, available with FHA, VA, USDA-RD, or conventional underwriting at a competitive rate. The MassHousing Mortgage includes a no-PMI option for qualifying buyers - meaning eligible borrowers can get a low-down-payment conventional loan without private mortgage insurance, which materially reduces the monthly payment compared to a standard conventional loan with PMI or an FHA loan with monthly MIP. Compatible with MassHousing Down Payment Assistance and with city DPA programs in Boston, Cambridge, and Worcester.
• MassHousing Down Payment Assistance. Up to $50,000 in down payment and closing cost assistance, structured as a 0% interest deferred second mortgage with no monthly payment - balance due in full at sale, refinance, or end of owner occupancy. Available paired with the MassHousing Mortgage and applicable to FHA, VA, USDA, or conventional first mortgages. Because MassHousing DPA carries no monthly payment, it does not increase the buyer's debt-to-income ratio at qualification - which preserves first-mortgage qualification power on Massachusetts's high purchase prices.
• ONE Mortgage Program (Massachusetts Housing Partnership). MHP's flagship first mortgage product, separate from MassHousing - a below-market 30-year fixed-rate conventional first mortgage with no private mortgage insurance and a state-funded interest subsidy for income-qualified buyers. ONE Mortgage was specifically designed to address Massachusetts's high purchase prices and is one of the most distinctive first-time-buyer products in the country: the no-PMI structure plus the interest subsidy typically reduces the monthly payment by $200-$400+ versus a comparable FHA or standard conventional loan. ONE Mortgage requires 3% down (1.5% of which must come from the buyer's own funds; the remaining 1.5% can come from a gift or DPA), is open to first-time buyers within MHP's income limits, and is the product layered with the City of Boston's DPA in the ONE+Boston program.
• ONE+Boston. A program-level pairing of MHP's ONE Mortgage with up to $50,000 in City of Boston down payment and closing cost assistance, specifically for low- to moderate-income first-time buyers purchasing a primary residence within City of Boston limits. ONE+Boston is income restricted and uses HUD's area median income tiers for Boston; HUD-approved homebuyer education is required, and the City of Boston DPA is structured as a deferred or forgivable second mortgage with multi-year continuous owner-occupancy requirements. ONE+Boston is the most-used first-time-buyer stack in Boston because it pairs MHP's no-PMI subsidized first mortgage with deep city DPA on the same transaction.

Income and Purchase Price Limits

MassHousing and MHP income and purchase price limits vary by county, town, and household size. Income limits generally range from roughly $130,000 in lower-cost Massachusetts counties to $180,000+ in Greater Boston (Suffolk, Middlesex, Norfolk, Essex counties) for 1-2 person households for MassHousing programs, with MHP's ONE Mortgage typically capping at roughly 100% of area median income for the relevant county. Purchase price limits typically fall in the $600,000-$800,000+ range in Greater Boston and somewhat lower in Western Massachusetts. ONE+Boston uses City of Boston income limits set at HUD's AMI tiers and applies its own City of Boston purchase price ceiling. Always confirm current MassHousing, MHP, and ONE+Boston income and purchase price limits with an approved lender or at masshousing.com, mhp.net, and the City of Boston Department of Neighborhood Development before assuming eligibility.

City Programs Worth Knowing

Boston, Cambridge, and Worcester each run city-level down payment assistance programs designed to stack with MassHousing or MHP financing. Boston's ONE+Boston pairing is the most-used first-time-buyer stack in the state.

• ONE+Boston (City of Boston Down Payment Assistance). Up to $50,000 in down payment and closing cost assistance for low- to moderate-income first-time buyers purchasing a primary residence within City of Boston limits, paired with MHP's ONE Mortgage as the first mortgage. Structured as a deferred or forgivable second mortgage with multi-year continuous owner-occupancy requirements, HUD-approved homebuyer education required, and administered through the City of Boston Department of Neighborhood Development in coordination with MHP-approved lenders. ONE+Boston is income restricted and uses HUD's area median income tiers for Boston; the $50,000 city DPA combined with the no-PMI subsidized ONE Mortgage is what makes a Boston primary residence purchase realistic for many first-time buyers at typical Boston purchase prices. Funding cycles can exhaust mid-fiscal-year - confirm availability before counting on a specific dollar amount in your offer.
• City of Cambridge Homebuyer Assistance Program. Up to $30,000 in down payment and closing cost assistance for income-qualified first-time buyers purchasing a primary residence inside City of Cambridge limits. Structured as a deferred or forgivable second mortgage with multi-year continuous owner-occupancy requirements, HUD-approved homebuyer education required, and designed to stack with MassHousing or MHP financing. Cambridge's pricing pressure (one of the highest median purchase prices in the state) is partly offset by this $30,000 city DPA, which is one of the larger municipal DPA programs in New England outside Boston and Hartford. Funding cycles can exhaust mid-fiscal-year - confirm availability with the City of Cambridge Community Development Department before applying.
• City of Worcester Down Payment Assistance Program. Up to $10,000 in down payment and closing cost assistance for income-qualified first-time buyers purchasing a primary residence inside City of Worcester limits. Structured as a deferred or forgivable second mortgage with multi-year continuous owner-occupancy requirements, HUD-approved homebuyer education required, and designed to stack with MassHousing or MHP financing. Funding cycles can exhaust mid-fiscal-year - confirm availability with the City of Worcester Executive Office of Economic Development before applying.

All three city programs run on funding cycles that can exhaust mid-fiscal-year, and homebuyer education must be completed before application - not after offer acceptance. The city agency review steps extend closing timelines by several weeks beyond a standard MassHousing or MHP closing; ONE+Boston in particular typically adds the most time because of the combined city DPA review and MHP ONE Mortgage coordination. Plan that into the front of your timeline and confirm current funding availability with the administering agency before counting on it in your offer.

FHA Loan Requirements in Massachusetts

FHA loans are widely used by Massachusetts first-time buyers and are compatible with the MassHousing Mortgage, MassHousing Down Payment Assistance, City of Cambridge Homebuyer Assistance, and City of Worcester DPA. ONE Mortgage and ONE+Boston, however, use a no-PMI subsidized conventional structure rather than FHA - so buyers considering ONE Mortgage should compare FHA pricing to ONE Mortgage pricing carefully. FHA loan limits in Massachusetts are elevated above the standard ceiling in Greater Boston counties.

How to Apply

1. Decide whether MassHousing or MHP's ONE Mortgage is the right first mortgage for you. The MassHousing Mortgage with no-PMI option is broadly available; ONE Mortgage is income restricted to roughly 100% of area median income but offers a state-funded interest subsidy and no PMI, which often produces the lowest long-term cost for income-qualified Massachusetts first-time buyers.
2. Check your credit score - 580 is the FHA minimum for 3.5% down, and both MassHousing and MHP typically require 640 or higher.
3. Review current MassHousing income and purchase price limits at masshousing.com and MHP's ONE Mortgage income limits at mhp.net - the limits differ between the two agencies and vary by county and household size, and Greater Boston limits are materially higher than Western Massachusetts.
4. If you're buying inside City of Boston limits and your income qualifies for ONE Mortgage, ask your lender about ONE+Boston specifically - this is the most-used first-time-buyer stack in Boston and combines MHP's no-PMI subsidized rate with up to $50,000 in City of Boston DPA.
5. If you're buying inside City of Cambridge limits, contact the City of Cambridge Community Development Department to confirm Homebuyer Assistance Program eligibility and current funding.
6. If you're buying inside City of Worcester limits, contact the City of Worcester Executive Office of Economic Development to verify Down Payment Assistance Program availability and current funding.
7. Complete a HUD-approved homebuyer education course - required by MassHousing, MHP, ONE+Boston, and all three city programs.
8. Select an approved lender on both the MassHousing/MHP list and (if applicable) the relevant city program's participating lender list. Not all Massachusetts lenders offer both MassHousing and ONE Mortgage, so ask up front.
9. Apply through your approved lender, who will coordinate the MassHousing or MHP application and the city program submission simultaneously.

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