First-Time Buyers in Massachusetts: MassHousing Down Payment Assistance
James Brazil lives in Mérida, Mexico. He founded Swift Agent Sites and studied Classics at the University of Mississippi.
Published · Updated
MassHousing offers income-eligible first-time homebuyers down payment assistance of up to $30,000 when they buy a home anywhere in Massachusetts. The assistance must be paired with a MassHousing Mortgage, and a homebuyer education class is required.
The assistance is a loan, not a grant. It is a second mortgage that must be paid off when you sell, refinance or pay off the first mortgage.
Who is eligible?
MassHousing says that to get its Down Payment Assistance you must:
- Be an income-eligible first-time homebuyer
- Buy a single-family home, a condominium, or a 2-, 3- or 4-family property that will be your primary residence
- Pair the assistance with a MassHousing Mortgage loan
- Complete a homebuyer education class
Additional requirements apply, and MassHousing-approved lenders decide which type and amount of assistance you qualify for. MassHousing has an online Eligibility Quick Check that can connect you with a partner lender.
What are the three assistance options?
- Option 1: deferred. Up to $30,000 at 0% interest. No payments are due until you sell, refinance or pay off the first mortgage, when the whole balance is due.
- Option 2: amortizing at 2%. Up to $25,000, repaid monthly over 15 years at a fixed 2% (APR 2%). MassHousing's example: a $25,000 loan has 180 payments of $160.88.
- Option 3: amortizing at 3%. Up to $25,000, repaid monthly over 15 years at a fixed 3% (APR 3%). MassHousing's example: a $25,000 loan has 180 payments of $172.62.
The amortizing options add a second monthly payment on top of your first mortgage. Count both when you figure out what you can afford.
What does the MassHousing Mortgage include?
MassHousing describes its mortgages as having interest rates fixed for the life of the loan, with Conventional and FHA options. It also lists:
- MI Plus. On loans with MassHousing mortgage insurance, MI Plus can help pay principal and interest if you lose your job: up to $4,000 a month for up to six months, at no extra cost. Loans approved for mortgage insurance before July 1, 2024 have a $2,000 monthly limit.
- Closing credit for military households. Members of the National Guard or Reserves, active-duty military, veterans and Gold Star Families may be eligible for a $2,500 closing cost credit.
- Purchase and renovation. MassHousing financing can cover both buying and renovating a home.
MassHousing assistance can be combined with other local programs. MassHousing names the Federal Home Loan Bank of Boston's Equity Builder as one example and says many cities and towns have their own first-time buyer help. Check with the town where you are buying.
How does homebuyer education work?
MassHousing lists approved homebuyer education providers around the state, and classes are offered in person and online in several languages through MyMassHome. You do not have to take the course in the town where you live or are buying.
Two Massachusetts rules are worth learning before you shop: a signed Offer to Purchase can already be a binding contract, and homes built before 1978 come with lead paint rules. See our guides to the Offer to Purchase and P&S and the lead paint law for pre-1978 homes.
What should first-time buyers do first?
- Sign up for a homebuyer education class early. It is required.
- Run MassHousing's Eligibility Quick Check, then talk to a MassHousing-approved lender.
- Ask the lender which assistance option fits and what your total monthly payment would be.
- Ask your city or town about local first-time buyer programs you can stack.
- After you close, consider recording a declaration of homestead.
FAQ
How much down payment help does MassHousing offer?
Up to $30,000 as a deferred, 0% second mortgage, or up to $25,000 as a 15-year amortizing loan at 2% or 3%. Your lender determines the type and amount.
Do I have to repay MassHousing down payment assistance?
Yes. It is a second mortgage that must be paid off when the home is sold or refinanced, or when the first mortgage is paid off.
Can I use it on a multi-family home?
Yes, a 2-, 3- or 4-family property qualifies if it will be your primary residence.
Is it only for certain towns?
No. MassHousing says it is available in every city and town in Massachusetts, subject to first mortgage eligibility.
Can I combine it with other programs?
MassHousing says it may be combined with other local down payment and assistance programs, such as FHLB Boston's Equity Builder.
Next step
A licensed local real estate agent can help you shop within the price a MassHousing lender approves and time your offer around the loan process. Program terms can change, so confirm current details with MassHousing or an approved lender before you commit.
Sources: MassHousing: Down Payment Assistance, MassHousing: Mortgage Loans, Down Payment Assistance & Homebuyer Benefits, MassHousing: MI Plus, MassHousing: Find a Homebuyer Education Class.
General information for Massachusetts. Not legal advice, a prediction of prices or advice for any specific property. Confirm current rules with your town, a real estate attorney and a licensed agent.
Agents who publish a lightly edited version on their own domain should set a canonical tag pointing to this URL.
Agents serving this area
Lyn Robinson — Lyn Robinson Real Estate, LLC
Massachusetts real estate broker, REALTOR and real estate instructor based in Blackstone, and a Seniors Real Estate Specialist (SRES). Serving Blackstone, Bellingham, Milford, Franklin, Uxbridge and nearby towns.