First-Time Home Buyer Programs in Massachusetts

Who counts as a first-time home buyer in Massachusetts

Both state programs use the same test, and it is more generous than the name suggests. A first-time homebuyer is someone who has not held an ownership interest in a principal residence during the three years before closing. MassHousing applies that to each borrower on a first-time-only product; ONE Mortgage applies it to every adult in the household. You can have owned a home years ago, or own a rental you never lived in, and still qualify. Both programs also require the home to be your primary residence, cap household income by community and household size, and require a homebuyer class before closing.

MassHousing: the first mortgage and down payment assistance

MassHousing does not lend directly to you. It funds loans made by MassHousing-approved lenders, and a broker like me places the loan through a wholesale lender that holds the approval. The first mortgage is a 30-year fixed-rate loan, conventional or FHA, with no pricing add-ons for credit score, 97 percent financing on a one-unit home and 95 percent on two to four units, and MI Plus, MassHousing’s mortgage insurance that pays up to six months of principal and interest if you lose your job. Condos, single-family homes and two- to four-family homes are eligible, with a landlord class required on the multi-family homes.

Down payment assistance is a second mortgage behind the MassHousing first, for income-eligible first-time buyers purchasing in any city or town. Your lender determines which option you qualify for based on your income relative to the area median:

Income limits depend on the product. The deferred, interest-free option goes with MassHousing’s Workforce Advantage loans, which carry the lowest limits; the other options reach buyers up to 135 percent of area median income. Here are the Workforce Advantage limits for the towns I am asked about most; MassHousing publishes every city and town, and the 135 percent limits, on its lender forms.

Other MassHousing rules: you cannot own other real property at closing, the home must stay your primary residence for the life of the loan, and eligible service members and veterans receive a closing cost credit.

ONE Mortgage from the Massachusetts Housing Partnership

ONE Mortgage is a 30-year fixed-rate loan with three features that matter at a Massachusetts price. First, 3 percent down, or 5 percent on a three-family, with at least 1.5 percent of the price from your own savings; the rest can be a gift or a local grant. Second, no private mortgage insurance: public funds hold a loan-loss reserve for the lender instead of charging you a premium. Third, an interest subsidy for buyers at or below 80 percent of area median income, paid to the lender to hold your housing payment at a target ratio for four years and phased out over the next four.

• First-time buyer: no ownership interest in a principal residence in the prior three years, for every adult in the household.
• Income: within 100 percent of area median income for your community and household size. The subsidy is only for buyers at or below 80 percent.
• Assets: under $75,000 in liquid assets, not counting retirement accounts.
• Property: a condo, single-family, two-family or three-family home in Massachusetts that will be your primary residence. The subsidy does not apply to three-family homes.
• Education: a pre-purchase class with an agency certified by the Massachusetts Homeownership Collaborative before the loan is reserved, a landlord class for two- and three-family homes, and a post-purchase class within a year of closing.

MHP also runs ONE+, which adds down payment and closing cost help in designated communities, and ONE+Boston for the city of Boston. ONE Mortgage loans are made by MHP’s participating lenders, most of them Massachusetts banks and credit unions. If ONE is the right fit and none of my wholesale lenders can originate it, I will say so and point you to MHP’s lender list rather than steer you to a loan that costs more.

Homebuyer education: required by both

Both programs require a pre-purchase homebuyer class, so take it before you start shopping. MassHousing requires a class from a MassHousing-approved counseling agency. ONE Mortgage requires one certified by the Massachusetts Homeownership Collaborative, the network run by Citizens’ Housing and Planning Association (CHAPA), with the certificate in hand before MHP reserves your subsidy. Many agencies are certified for both. If a two- or three-family is on your list, add the landlord class; both programs require it before closing.

MassDREAMS and other state and local help

MassDREAMS was a pandemic-era grant funded by federal relief money for first-time buyers living in 29 designated communities, administered by MassHousing and MHP. As of October 2026 MassHousing no longer lists it among its homebuyer programs, and the state’s capital plan shows new funding in a later fiscal year. Do not plan around it; ask me whether a round is open when you are ready to buy.

What is reliably available is local. Many cities, including Boston, Worcester, Springfield, Lowell and New Bedford, run their own down payment or closing cost assistance with federal HOME or CDBG funds, and those grants can be layered under a MassHousing or ONE Mortgage first loan. Amounts and income limits change by city and year, so I check the city’s housing office once we know where you are buying.

FHA in Massachusetts, in brief

FHA is the loan most first-time buyers use when they are over the state programs’ income limits or want a lender with fewer rules. It takes 3.5 percent down with a credit score of 580 or higher, allows the whole down payment to be a gift, lets the seller pay up to 6 percent of the price toward closing costs, and lends on one- to four-unit homes you occupy. The cost is mortgage insurance, upfront and monthly, that lasts for the life of the loan with less than 10 percent down. MassHousing also offers an FHA version of its first mortgage with down payment assistance for first-time buyers up to 135 percent of area median income. The Massachusetts FHA page has the 2026 limits for every county.

MassHousing, ONE Mortgage or FHA: how to choose

If your income is at or below 80 percent of the area median and your assets are modest, ONE Mortgage is usually the lowest monthly payment, because of the subsidy and no mortgage insurance. If your income is a little higher, or you need more down payment help than you can save, MassHousing with its assistance often wins, and its FHA version reaches buyers up to 135 percent of area median income. If you are over both limits, or buying a four-family, FHA or a 3 percent down conventional loan is the path. The state programs expect a credit score in the mid 600s; FHA goes lower.

How to use first-time home buyer programs in Massachusetts, step by step