First-Time Home Buyer Programs in Massachusetts

MassHousing Programs:

MassHousing Mortgage:

Eligibility: Targets first-time homebuyers (no homeownership in the past three years) or buyers in targeted areas (repeat buyers eligible in these zones).
Offerings: Provides a 30-year fixed-rate mortgage (FHA, VA, or conventional) with low interest rates and down payment assistance up to $50,000 (0% interest, deferred loan repayable upon sale or refinance).
Requirements:

• Income must not exceed $145,000 (statewide limit as of 2025, higher in targeted areas).
• Minimum credit score of 640 for conventional, 660 with assistance (varies by loan type).
• Debt-to-income ratio capped at 45% (50% with compensating factors).
• Homebuyer education course required.
• Purchase price limit of $619,000 for a single-family home.

Operation Welcome Home:

Benefits: Offers a 30-year fixed-rate mortgage with up to $50,000 in down payment assistance (0% interest, deferred loan) for veterans, active-duty military, or Gold Star families; includes discounted mortgage insurance.
Eligibility: Must meet MassHousing income and purchase price limits; proof of military service required.

MassDREAMS Program:

Description: Provides grants up to $50,000 for down payment and closing costs in 29 gateway cities; targets first-time buyers in communities hit hard by past challenges (e.g., foreclosure rates); funding limited.
Requirements: Income capped at 100% AMI (e.g., $103,280 for a family of four in Boston); must use a MassHousing mortgage.

Local Programs:

Boston

Boston Home Center FIRST Program: Offers up to $40,000 as a 0% interest deferred loan (repayable upon sale) for down payment and closing costs; income must be at or below 80% AMI (e.g., $82,600 for a family of four).

Worcester

Worcester Housing Authority Down Payment Assistance: Provides up to $15,000 as a forgivable loan (forgiven after 10 years) for first-time buyers; income capped at 80% AMI; homebuyer education required.

Springfield

Springfield Homebuyer Assistance: Offers up to $10,000 as a deferred loan (0% interest, due upon sale) for down payment and closing costs; income must be below 80% AMI.

Additional Information:

• M ONE Mortgage: A separate state program offering low/no down payment mortgages with subsidized rates; income limits apply (e.g., $108,000 in Greater Boston); requires homebuyer education.
• FHA Loans: Minimum 3.5% down payment, suitable for credit scores as low as 580 (10% if below 580).
• USDA Loans: Zero-down payment for rural Massachusetts areas; income limits apply.
• VA Loans: Zero-down payment for eligible veterans or active military.