First-Time Home Buyer in Massachusetts? Discover Grants and Assistance Programs That Can Help

Massachusetts homebuyers have a plethora of opportunities to apply for down payment and closing cost assistance through statewide and locally sponsored programs. These programs target low- and middle-income homebuyers who wish to purchase a home in the program’s designated geographic area. The goal of these programs is to build communities and financial stability among homebuyers.

Learn more about financial assistance programs for first-time homebuyers below.

Eligibility Requirements

While each program might have slightly different eligibility requirements for first-time buyers, there are five universal ones we would like to point out:

1. That’s right. Only first-time homebuyers are eligible. Some programs may expand their definition of “first-time homebuyer” to include borrowers from varying situations, such as veterans or single parents displaced from their home due to a separation or divorce.
2. The home must be used as the homebuyer’s primary residence.
3. The home’s must be located within the program’s geographic limits.
4. Homebuyers must complete a homebuyer class.
5. Most programs require the homebuyer to contribute a portion of their own funds toward the purchase of the home.

Statewide Massachusetts Down Payment Assistance Programs

The statewide Massachusetts down payment assistance programs are available to first-time homebuyers purchasing one of the following property types in Massachusetts:

• Single-family homes
• Condominiums
• 2-, 3-, and 4-unit properties.

MassHousing

Key Features:

• Provides up to $30,000 in down payment assistance.
• Homebuyers must have an annual income of less than $190,755.
• Homebuyers can apply for this assistance program through a participating lender.
• May be used with other local down payment assistance programs.
• There are two assistance options. The first is a 0%, deferred loan that is repaid once the homebuyer sells the home, refinances, or pays off the first mortgage. The second option is a fully amortizing 15-year loan that carries a 2% interest rate and requires monthly payments.
• The loan balance must be repaid once the homebuyer sells the home, refinances, or pays off the first mortgage.

Massachusetts Housing Partnership

Key Features:

• Provides up to $50,000 in assistance.
• There are income limits. Homebuyers must have an annual income that doesn’t exceed 135% of the area median income.
• Homebuyers must reside in one of 29 “disproportionately affected” communities.

North Massachusetts

The North Massachusetts down payment assistance programs are available to first-time homebuyers, those who have not owned a home in the past three years, and single parents who have been displaced from their home due to divorce or legal separation.

Haverhill Down Payment Assistance Program

Key Features:

• Provides up to $7,500 in assistance.
• Homebuyers must have an eligible annual income.
• The home purchase price must not exceed program limits.
• This is a 0%, deferred, and forgivable second mortgage loan. The loan is forgiven at 20% per year and is fully forgiven once the homebuyer has lived at the property for five years.

Lawrence First-Time Homebuyers Program

Key Features:

• Provides up to $25,000 in assistance.
• Homebuyers must have an eligible annual income.
• The home sale price must not exceed program limits.
• Assistance can be structured as a low-interest rate loan, a deferred payment loan, or as a grant.

Lowell First-Time Homebuyers Program

Key Features:

• Provides up to $10,000 in assistance.
• Lowell extends first-time homebuyer status to veterans.
• Homebuyers must have a qualifying annual income.
• Homebuyers can apply for the program with Merrimack Valley Housing Partnership.

Lynn Housing Authority and Neighborhood Development

Key Features:

• Provides up to $10,000 in assistance.

Salem First-Time Homebuyer Down Payment Assistance Program

Key Features:

• Provides up to $16,500 in assistance.
• Homebuyers must have a qualifying annual income.
• Salem extends first-time homebuyer status to single parents who have been displaced from their home due to divorce or legal separation.
• Homebuyers can’t have more than $50,000 in assets saved.
• The home purchase price can’t exceed program limits.

East Massachusetts

The down payment assistance programs in East Massachusetts are available for first-time homebuyers and homebuyers who haven’t owned a home in the last three years.

City of Boston First-Time Homebuyer Program

Key Features:

• Provides up to $50,000 in down payment and closing cost assistance.
• There are income limits. Homebuyers must have an annual income that doesn’t exceed 135% of the area median income and have less than $75,000 in assets.
• The assistance can be used to purchase one- to three-unit residential properties.
• Homebuyers can apply for the program through the website once they have been preapproved for a first mortgage through a participating mortgage lender.
• Assistance is given in the form of a grant.

Boston Housing Authority (BHA)

Key Features:

• Provides up to $75,000 in assistance.
• For current tenants of BHA rental properties.
• Must be a tenant in good standing, have a credit score of at least 650, have at least $4,000 saved, and be income eligible.

Brockton First-Time Homebuyer Program

Key Features:

• Provides up to $15,000 in assistance.
• Homebuyers must have an eligible annual income.
• The maximum purchase price for the home must be between $532,000 and $631,000 for a single-family home, and between $568,000 and $727,000 for a duplex.
• Homebuyers can’t have more than $30,000 in assets.
• This is a 0%, deferred payment loan. The loan must be repaid upon the sale of the home or a cash-out refinance of the first mortgage.

Cambridge Down Payment Assistance Program

Key Features:

• Provides up to $10,000 in assistance.
• Homebuyers must have an eligible annual income.
• This is a 0%, deferred payment loan. The loan is forgiven at 20% per year and is fully forgiven after the homebuyer has lived in the home for five years.

South Shore First-Time Homebuyer Program

Key Features:

• Provides up to $20,000 in assistance.
• There are income limits. The homebuyer’s annual income must be no higher than 80% of the area's median income.
• The homebuyer’s assets can’t exceed $75,000.
• Homes in the following cities are eligible: Braintree, Holbrook, Quincy, and Weymouth.
• This is a 0%, deferred payment loan that is forgiven after the homebuyer has lived in the property for a specific period of time (either five or 10 years). The homebuyer will have to repay the assistance if they sell or transfer ownership of the home, refinance the first mortgage, or cease to occupy the home as their primary residence.

Central and West Massachusetts

The down payment assistance programs in Central and West Massachusetts offer lower assistance amounts than other programs, but their loans can be combined with other statewide assistance programs.

Holyoke Housing Authority

Key Features:

• Provides up to $4,999 in assistance.
• There are income limits. Homebuyers must have an annual income that is equal to or less than 80% of the area median income.
• The home purchase price can’t exceed $271,000.
• This is a deferred and forgivable loan. Assistance is forgiven after the homebuyer has lived in the home for five years.

Springfield Down Payment Assistance

Key Features:

• Provides up to $4,000 in assistance.
• Homebuyers must have an eligible annual income.
• Homebuyers must not have any outstanding debts with the city of Springfield.
• This is a 0%, deferred, and forgivable loan. The assistance will be forgiven at 20% per year as long as the homebuyer uses the home as their principal residence; in this case, the assistance will be fully forgiven after year five.

Worcester Down Payment Assistance Program

Key Features:

• Provides up to $5,000 in assistance.
• There are income limits. The homebuyer’s annual income can’t exceed 80% of the area's median income.
• The home purchase price can’t exceed 95% of the median area home sale price.
• This is a 0%, deferred, and forgivable loan. The loan is fully forgiven once the homebuyer has lived in the home as their principal residence for three years. If the homebuyer sells or transfers the property, or ceases to occupy it as their principal residence prior to those three years expiring, the loan must be repaid.

South Massachusetts

South Massachusetts has two down payment assistance programs, both of which extend “first-time homebuyer” status to several categories of buyers: first-time homebuyers, those who haven’t owned a home in three years, and single parents and spouses who have been displaced from their home due to a separation or divorce.

Fall River HOME Program

Key Features:

• Provides up to $10,000 in assistance.
• The homebuyer must be income-eligible.
• The homebuyer can’t have more than $25,000 in assets.
• This is a deferred and forgivable loan that carries an interest rate of 1%. The loan is forgiven once the homebuyer has lived in the home for five years. If the homebuyer sells or transfers the property, or ceases to live at the home as their principal residence prior to those five years expiring, the loan and interest must be repaid.

New Bedford First-Time Homebuyers Program

Key Features:

• Provides up to $40,000 in assistance.
• Homebuyers must have an annual income that doesn’t exceed 80% of the area median income.
• Homebuyers can apply for assistance through the Office of Housing and Community Development or through a participating lender.
• This is a 0%, deferred, and forgivable loan. The loan is forgiven after the homebuyer has lived in the home as their principal residence for either 10 or 15 years; the length of time is dependent on the amount of assistance given.

Bottom Line

Homebuyers in Massachusetts have multiple statewide and locally sponsored down payment assistance programs through which they can get help in buying a home. Most of the programs structure the assistance as forgivable home loans that incentivize the buyers to stay in their homes for a certain amount of time (usually five years). This can be incredibly beneficial for homebuyers who intend to live at their property for many years.

Even if borrowers must repay the assistance, using one of these programs can help homebuyers bridge the gap between the savings they have and what they need to officially become homeowners. Thanks to programs like these, the path to homeownership, equity, and financial stability may be just a little bit closer.