Purchasing a first home in Massachusetts in 2025 is a significant milestone, but high real estate prices, with a median home value of $614,000 as of February 2025, pose challenges for first-time buyers . Down payment assistance (DPA) loans and grants, offered through state agencies like MassHousing and the Massachusetts Housing Partnership (MHP), alongside local programs, help alleviate these barriers. These initiatives provide financial support for down payments and closing costs, targeting low- to moderate-income households. We published this article to explore Massachusetts’ 2025 first-time home buyer programs, their eligibility criteria, benefits, risks, and two case studies illustrating their practical application.

Overview of Massachusetts First-Time Home Buyer Programs

MA first time buyer

Massachusetts defines a first-time home buyer as someone who hasn’t owned a principal residence in the past three years, though some programs extend to repeat buyers in specific areas.

Key statewide programs include:
• MassHousing Mortgage: Offers 30-year fixed-rate loans (conventional or FHA) with low down payments and MI Plus mortgage insurance, covering up to six months of payments (up to $2,000/month) in case of job loss.
• MassHousing Down Payment Assistance (DPA): Provides up to $50,000 in select communities (e.g., Boston, Gateway Cities) or $30,000 elsewhere, as a second mortgage. Options include a 0% interest deferred loan, or 15-year amortizing loans at 2% or 3% interest.
• MHP ONE Mortgage: A 30-year fixed-rate loan with a 3% down payment, no private mortgage insurance (PMI), and subsidies for low- to moderate-income buyers. Available through over 40 MA lenders.
• Operation Welcome Home: Offers flexible underwriting, fixed-rate loans, and DPA for veterans, active-duty military, and Gold Star families, with loan limits up to $970,800 for single-family homes in 2025.

1. MassHousing Down Payment Assistance (Up to $30,000)

Program Summary
MassHousing offers three DPA options when paired with its mortgage loan:

  • Deferred second mortgage up to $30,000, interest-free, due upon sale, refinance, or payoff.

  • 15‑year amortized second mortgage up to $25,000 at 2% APR.

  • 15‑year amortized second mortgage up to $25,000 at 3% APR

Eligibility & Terms

  • Must be first-time homebuyer (no homeownership in last 3 years).

  • Income limits apply.

  • Program available statewide for single‑family homes, condos, and 2–4 units.

  • Requires completion of an approved homebuyer education class.

️ ONE Mortgage Program (Mass Purchasing Loan + Subsidy)

Program Summary
Offered by Massachusetts Housing Partnership (MHP), the ONE Mortgage program is designed for moderate- and low-income first-time buyers:

  • 3% down payment required, with no PMI.

  • Offers subsidy to lower interest, reducing monthly payments in early years.

  • Statewide program available through 40+ participating lenders masshousing.com+6mass.gov+6mhp.net+6.

Eligibility & Terms

  • First-time homeowners (no prior ownership within 3 years).

  • Maximum income varies by county/household size.

  • Credit scores: minimum 640 for one-unit/condo, 660 for 2–3 units.

  • Assets capped at $75,000 (excluding retirement).

  • Requires 1.5% of down payment sourced from borrower’s savings; gift funds or DPA can cover the remainder

Boston-Specific Programs

A. Boston Home Center DPA

Highlights

  • Funds equal to 5% of purchase price, capped at $50,000 (for ≤100% AMI) or $35,000 (101–135% AMI).

  • Zero-interest, deferred-payment; repayable upon sale, refinance, or no longer occupying as a primary residence.

B. BHA First Home Program

Highlights

  • Available to Section 8 and public housing tenants.

  • Provides up to $75,000 in enhanced DPA, coupled with Section 8 rental vouchers.

  • As of March 2025, over 70 BHA households purchased homes under the program bostonhousing.org.

Official Links

  • Boston Home Center: see MyMassHome or Boston DPA pages via MyMassHome

  • BHA First Home Program:

️ Gateway City & Local Municipality Programs

A. Gateway Cities (Bird-thatcher coverage)

  • MassHousing caps DPA at 5% or $30,000, but provides elevated assistance of up to 10% or $50,000 in 29 designated communities via MassDREAMS

Eligible communities include: Attleboro, Barnstable, Boston, Brockton, Chelsea, Chicopee, Everett, Fall River, Fitchburg, Framingham, Haverhill, Holyoke, Lawrence, Leominster, Lowell, Lynn, Malden, Methuen, New Bedford, Peabody, Pittsfield, Quincy, Revere, Salem, Springfield, Taunton, Westfield, Worcester .

B. City of Worcester Housing & Neighborhood Grants

  • Offers up to $5,000 forgivable second mortgage, forgiven if homeowner maintains occupancy for at least 3 years.

C. City of Springfield DPA

  • Provides up to $4,000 forgivable DPA, forgiven over 5 years at 20% per year under an income‑eligible framework .

D. Plymouth, MA DPA

  • Offers up to $15,000 zero-interest deferred payment loan to first-time buyers, funded via HUD CDBG plymouth-ma.gov.

Federal Home Loan Bank (FHLB) Boston Grants

A. Equity Builder Program

  • Grants up to $29,000 for first-time buyers earning ≤80% AMI, aiding down payment, closing, or rehab costs.

  • Requires minimum borrower contribution of $500. (see more first time home mortgages)

B. Housing Our Workforce (HOW) Program

  • Grants up to 10% of purchase price, max $25,000, for households earning between 80–120% AMI.

C. FHLBank Boston Lift Up Homeownership Program

  • Funded through select mortgage lenders like Hometown Mortgage; offers up to $50,000 to first-generation buyers of color northshore-bank.com.

Official FHLB Boston site
https://www.fhlbboston.com/fhlbank-boston# 

Local Partner (Hometown Mortgage)

  • Lending branch offering access to EBP, HOW, and Lift Up grants as of April 1, 2025.

How to Apply for Massachusetts First Time Home Buyers

  1. Determine your eligibility — check first-time status, income, credit score, and geographic area.

  2. Attend homebuyer education — mandatory for state/local programs (MassHousing, ONE Mortgage, FHLB grants, etc.).

  3. Select a mortgage product — consider MassHousing loan + DPA, ONE Mortgage, FHA, VA, USDA, or conventional with gift funds.

  4. Identify and apply for assistance — from state or local sources (MassHousing DPA, Boston/municipal grants, FHLB grants).

  5. Work with approved lenders — cross-qualify with multiple programs to layer funding.

  6. Close — DPA funds are secured at closing; grant forgivables are recorded on deed and forgiven over time.

Case Study 1: Amir & Sofia (Greater Boston)

  • Profile: First-time, dual-income couple purchasing a $500,000 condo in Boston. Combined income at 110% AMI; credit scores in mid-600s.

  • Funding Stack:

    1. ONE Mortgage loan with 3% down = $15,000.

    2. Boston Home Center DPA = $35,000 (deferred, zero-interest).

    3. FHLB Equity Builder grant = $20,000.

  • Outcome:

    • Total assistance = $70,000. Out-of-pocket = 1.5% down ($7,500) + minimal closing costs.

    • Monthly mortgage lower than market due to ONE Mortgage subsidy.

    • No PMI thanks to ONE Mortgage.

  • Result: Comfortable monthly payment within budget; equity built from Day One.

Case Study 2: Maria (Springfield, first-generation buyer)

  • Profile: Single mom, low- to moderate-income, no family history of ownership. Purchasing a $220,000 single-family home in Springfield. Income ≈70% AMI.

  • Funding Stack:

    1. MassHousing DPA (deferred) = $30,000.

    2. Springfield local DPA (forgivable second mortgage) = $4,000.

    3. FHA loan with 3.5% down.

  • Outcome:

    • Out-of-pocket cash ≈ $2,700 down payment + required reserves.

    • Local forgiven DPA eliminated after 5 years occupancy.

    • MassHousing deferred loan payable upon refinance or sale.

  • Result: Easy path to homeownership while building equity and credit strength.

✅ 9. Summary by Program

Program Assistance Interest / Forgiveness Eligibility Highlights Coverage
MassHousing DPA Up to $30,000 0–3% / Deferred or amortizing First-time; income limits; state-wide Statewide
ONE Mortgage 3% down + subsidy Reduced interest; no PMI First-time; income/assets limits; state-wide Statewide
Boston Home Center DPA 5% purchase price, capped $35–50K Deferred, 0% First-time in Boston; AMI limits Boston only
BHA First Home Up to $75,000 Enhanced DPA; Section 8 base Boston Section 8/public housing tenants Boston only
Gateway City + MassDREAMS Up to $50,000 Grant Income limits; specific 29 cities Select cities
Worcester $5,000 Forgivable (3 years) Income eligible first-time in Worcester Worcester only
Springfield $4,000 Forgivable (5 years) Income eligible first-time in Springfield Springfield only
Plymouth Up to $15,000 Deferred, 0% Income eligible first-time buyers Plymouth
FHLB Boston EBP & HOW Up to ~$29,000–25,000 Grant Income and credit eligible via lender Statewide
FHLB Lift Up Up to $50,000 Grant First-gen buyers of color via select lenders Statewide
FHA, VA, USDA, Freddie/Fannie Standard financing — Varies (credit, income, service, geography) Nationwide

10. Useful Links for MA Down Payment Assistance

11. Tips & Best Practices for MA Home Buyers

  1. Bundle wisely: Many homebuyers can combine state, city, and federal funds into a single transaction—maximize coverage.

  2. Be HUD-educated early: Certification is often mandatory.

  3. Start mortgage pre‑approval first: Identifies your program eligibility.

  4. Use a seasoned agent/lender: They know funding timelines and layering rules.

  5. Align funds at closing: Timed properly to cover all costs upfront.

  6. Plan for forgivable loans: Understand occupancy or forgiveness triggers.

  7. Monitor evolving programs: Many have limited funding windows—stay current.

Final Takeaways on MA First Time Home Buyer Prgrams

Massachusetts offers robust support for first-time buyers in 2025—from large state programs like MassHousing DPA and ONE Mortgage to city-specific programs (Boston, Worcester, Springfield, Plymouth) and substantial federal grants via FHLB Boston.

For first- and first-generation buyers, the path is clearer than ever. Clever stacking of deferred house loans, forgivable grants, and low-down mortgages can enable homeownership with minimal upfront cost.

Start by assessing eligibility, completing required education, and working with certified lenders. With a strategic, well-structured approach, owning a home in Massachusetts in 2025 is within reach—even in high-price markets.

If you’d like assistance comparing your options or connecting with HUD-approved education and lenders, I’m here to help!

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