Massachusetts offers a wide range of first-time homebuyer programs, including state-funded down payment assistance of up to $30,000 through MassHousing, below-market mortgage rates through the ONE Mortgage Program, and forgivable grants from the Federal Home Loan Bank of Boston. Centre Realty Group, an independent brokerage headquartered in Newton, MA and serving Greater Boston since 1992, helps first-time buyers identify and layer these programs to reduce upfront costs and monthly payments. With the median listing price in Massachusetts reaching approximately $749,000 as of early 2026 (Source: Realtor.com), understanding every available dollar of assistance matters for renters looking to transition into homeownership.
Quick Summary
- MassHousing offers up to $30,000 in down payment assistance as a 0% interest, deferred-repayment loan for eligible first-time buyers statewide.
- The ONE Mortgage Program provides a 30-year fixed-rate mortgage with just 3% down and no private mortgage insurance (PMI).
- FHLBank Boston’s Housing Our Workforce (HOW) program awards forgivable grants of up to $25,000 for buyers earning up to 120% of area median income.
- The City of Boston’s First-Time Homebuyer Program offers down payment grants of up to $50,000 for income-eligible buyers purchasing within Boston.
- Nearly all Massachusetts homebuyer assistance programs require completion of an approved homebuyer education course before closing.
What First-Time Homebuyer Programs Are Available in Massachusetts in 2026?
Massachusetts has several state, federal, and municipal programs designed to help first-time buyers afford a home. The major statewide programs include MassHousing’s down payment assistance loans, the Massachusetts Housing Partnership’s ONE Mortgage, and grant programs administered through the Federal Home Loan Bank of Boston. Many cities and towns, including Boston, Cambridge, and several Gateway Communities, offer additional local assistance that can be combined with state programs.
The table below provides a side-by-side overview of the most widely used programs available in 2026.
Note: Income limits, grant caps, and availability are subject to change. Contact administering agencies or a participating lender directly for the most current eligibility details.
How Does MassHousing Down Payment Assistance Work?
MassHousing’s down payment assistance (DPA) program provides eligible first-time homebuyers with a second mortgage loan of up to $30,000 at 0% interest, with no monthly payments required. The loan is due only when the buyer sells the home, refinances, or pays off the primary mortgage. In select communities, including Boston and designated Gateway Cities, assistance can reach up to $50,000 (Source: MassHousing).
MassHousing DPA Eligibility Requirements
To qualify for MassHousing DPA, buyers must be purchasing a single-family home, condominium, or two-to-four-family property as a primary residence. Borrowers must meet income limits, which vary by county and household size. For example, in eastern Massachusetts counties, the income cap can reach approximately $170,800 to $256,200, depending on household size (Source: MassHousing). All applicants must complete a MassHousing-approved homebuyer education course and pair the DPA with a MassHousing first mortgage.
Governor Healey’s Expanded Homebuyer Assistance (April to July 2026)
In April 2026, Governor Maura Healey announced a $25 million investment to expand MassHousing’s homebuyer assistance program. For a limited time, first-time buyers who lock in a MassHousing mortgage between April 27 and July 31, 2026, can receive up to $25,000 at 0% interest with deferred repayment (Source: Mass.gov). This expanded program is available to buyers earning up to 135% of area median income, which in eastern Massachusetts translates to roughly $205,335 for a household. The program is expected to serve approximately 1,000 families before funding is exhausted.
Centre Realty Group agents working with buyers across Newton, Brighton, and the surrounding communities recommend applying early for this limited-window program, as funds are distributed on a first-come, first-served basis.
What Is the ONE Mortgage Program?
The ONE Mortgage Program, administered by the Massachusetts Housing Partnership (MHP), is a 30-year fixed-rate mortgage designed specifically for low- to moderate-income first-time homebuyers. It requires just 3% down for single-family homes and condominiums, and 5% down for three-family properties. A key benefit: ONE Mortgage eliminates private mortgage insurance (PMI), which can save borrowers hundreds of dollars per month compared to a conventional loan with less than 20% down (Source: Mass.gov).
ONE Mortgage Eligibility and Income Limits
Borrowers must have a total household income at or below 100% of area median income. Those earning below 80% AMI may qualify for an additional MHP subsidy that further reduces monthly payments. Total household assets must be under $100,000 (excluding retirement savings and government-approved college savings plans). A minimum credit score of 640 is required for single-family homes and condominiums, while two- and three-family purchases require a 660 score (Source: MHP). Over 40 lenders participate in the program statewide.
Since its inception in 1990 (originally known as SoftSecond), the ONE Mortgage program has helped more than 22,000 low- and moderate-income Massachusetts households purchase their first home.
ONE+Boston: Additional Assistance for Boston Buyers
Buyers purchasing within the City of Boston may qualify for ONE+Boston, which combines city funds with the ONE Mortgage structure to offer lower interest rates and additional down payment and closing cost assistance. This program is administered jointly by MHP and the Boston Home Center.
What Grants Are Available Through the Federal Home Loan Bank of Boston?
FHLBank Boston administers three homeownership assistance programs that provide forgivable grants to eligible buyers. These grants do not require monthly repayment and are forgiven entirely after a five-year retention period, provided the buyer continues to live in the home as a primary residence (Source: FHLBank Boston).
Housing Our Workforce (HOW)
HOW provides up to $25,000 in down payment and closing cost grants. The program is available to buyers earning between 80% and 120% of area median income. Buyers must work with a member financial institution approved by FHLBank Boston and contribute a minimum down payment of $2,000 from their own funds. Grants are awarded on a first-come, first-served basis each year.
Equity Builder Program (EBP)
EBP targets buyers at or below 80% of area median income, offering grants of up to $25,000. The minimum buyer contribution is $500. Like HOW, EBP grants are forgivable after five years.
Lift Up Homeownership
Lift Up Homeownership provides up to $40,000 in grants specifically for first-generation homebuyers earning up to 120% of area median income. FHLBank Boston defines a first-generation homebuyer as someone whose parents have never owned a home in the United States, or who lost a home to foreclosure. This program requires a minimum buyer contribution of $1,000. Lift Up grants cannot be combined with EBP or HOW but can be layered with other local, state, or federal programs outside of FHLBank Boston.
In our experience working with first-time buyers in Brighton and East Boston, Centre Realty Group agents have found that many buyers are unaware of FHLBank Boston programs because they must be accessed through a participating bank or credit union, not applied for directly. Asking your lender whether they participate in HOW, EBP, or Lift Up is an important early step.
What City and Town Programs Exist in Greater Boston?
Several municipalities in the Centre Realty Group service area offer their own first-time homebuyer assistance, often stackable with state programs.
Boston First-Time Homebuyer Program
The Boston Home Center provides income-eligible first-time buyers with a down payment grant based on household income. Buyers earning below 100% of AMI can receive up to 3% of the purchase price, with a maximum of $50,000, plus closing cost assistance. Those earning between 101% and 135% of AMI may receive up to 2% of the purchase price, capped at $35,000 (Source: Boston.gov). The grant charges no interest and requires no monthly payments but is due upon sale, refinance, or change of primary residence. Buyers must complete the Boston Home Center’s Homebuying 101 course and work with an approved participating lender.
Cambridge Homebuyer Assistance
The City of Cambridge offers homebuyer education and financial counseling through its Community Development Department. Cambridge buyers may also access state programs and FHLBank Boston grants through local participating lenders.
Gateway Cities
Massachusetts designates certain communities as Gateway Cities, which may receive expanded MassHousing DPA of up to $50,000. Several communities within or near the Centre Realty Group service area, including Somerville, have received targeted housing investments under the Affordable Homes Act.
Not sure which program fits? Talk to a local real estate agent at Centre Realty Group who works with first-time buyers every day.
How Can First-Time Buyers Combine Multiple Programs?
One common strategy for Massachusetts first-time homebuyers is layering, or stacking, multiple assistance programs into a single transaction. For example, a buyer purchasing in Boston could potentially combine MassHousing DPA (up to $30,000) with the Boston Home Center’s First-Time Homebuyer grant (up to $50,000) and a FHLBank Boston grant, assembling a substantial package of assistance.
There are important rules to keep in mind when stacking programs. FHLBank Boston’s Lift Up Homeownership cannot be combined with EBP or HOW, though it can be layered with MassHousing DPA and city programs. Most programs prohibit combining assistance with seller concessions exceeding 3% to 6% of the purchase price. Lenders will evaluate the combined loan-to-value ratio across all assistance to ensure it stays within program guidelines.
Working with a lender and real estate agent experienced in navigating multiple programs is important. Timing, documentation, and coordination between agencies can be complex, and an experienced team helps ensure nothing falls through during the process.
What Are the Steps to Apply for First-Time Homebuyer Assistance in Massachusetts?
The application process follows a consistent sequence across most Massachusetts programs. Completing these steps in order will position buyers to move quickly when they find the right property.
- Determine your first-time buyer status. Massachusetts defines a first-time buyer as someone who has not owned a principal residence in the past three years. Some programs, such as Lift Up Homeownership, have additional criteria for first-generation buyers.
- Complete a homebuyer education course. This is mandatory for virtually all state, city, and FHLBank Boston programs. Courses are offered by agencies approved by the Massachusetts Homeownership Collaborative and typically cost $50 to $100. Both in-person and online options are available through organizations like MAHA and the Boston Home Center. Certificates are generally valid for two to three years.
- Get pre-approved with a participating lender. Not all lenders participate in every program. MassHousing works with over 80 lending partners, while ONE Mortgage is available through more than 40 lenders. Ask your lender specifically which programs they can originate.
- Identify and apply for assistance programs. Based on your income, purchase location, and buyer profile, select the combination of programs that provides the most benefit. Your lender can help cross-qualify you for multiple programs.
- Find a home and make an offer. Work with a knowledgeable local agent who understands the timing and documentation requirements of DPA programs. Properties must be owner-occupied primary residences.
- Close on the purchase. DPA funds and grants are secured at closing. Forgivable grants are recorded on the deed and forgiven over the specified retention period.
You can use the Centre Realty Group mortgage calculator to estimate monthly payments with different down payment scenarios before applying.
How Much Can First-Time Buyer Programs Save You on a Greater Boston Home?
To put these programs in perspective, consider the potential impact on a typical Greater Boston purchase. The table below illustrates estimated savings for a buyer purchasing a $550,000 condominium, a common price point in communities like Newton, Brighton, and Watertown.
*Estimates based on a 6.25% interest rate, 30-year fixed term, and approximate 2026 tax and insurance costs. Actual payments vary by lender, credit profile, and specific program terms. Consult a mortgage lender for exact rate quotes.
The difference between going it alone and using available programs can amount to tens of thousands of dollars in upfront savings and hundreds of dollars per month in reduced payments. Based on transactions handled by Centre Realty Group across Newton and Brighton, most first-time buyers who use at least one assistance program are able to keep more cash reserves for moving costs, repairs, and early homeownership expenses.
Frequently Asked Questions About First-Time Homebuyer Programs in Massachusetts
Who qualifies as a first-time homebuyer in Massachusetts?
Massachusetts defines a first-time homebuyer as someone who has not owned a principal residence in the past three years. This applies to each individual on the mortgage application. If you previously owned a home but sold it more than three years ago, you typically qualify again. Some programs, such as FHLBank Boston’s Lift Up Homeownership, also require applicants to be first-generation homebuyers.
Do I need to take a homebuyer education class to get down payment assistance in Massachusetts?
Yes. Virtually all Massachusetts first-time homebuyer programs, including MassHousing DPA, ONE Mortgage, FHLBank Boston grants, and Boston Home Center programs, require completion of an approved homebuyer education course before closing. Courses are available in person and online through agencies approved by the Massachusetts Homeownership Collaborative, and typically cost between $50 and $100.
Can I combine MassHousing down payment assistance with other programs?
Yes. MassHousing DPA can be layered with city and town programs, such as the Boston Home Center’s First-Time Homebuyer grant, and with some FHLBank Boston grants. However, FHLBank Boston programs cannot be combined with each other (for example, you cannot receive both HOW and Lift Up). Most programs also limit seller concessions when assistance is being used. Work with a participating lender to determine the best combination.
What income limits apply to first-time homebuyer programs in Massachusetts?
Income limits vary by program, county, and household size. MassHousing’s expanded 2026 DPA program covers buyers earning up to 135% of area median income, approximately $205,335 in eastern Massachusetts. The ONE Mortgage Program caps eligibility at 100% of AMI. FHLBank Boston’s HOW and Lift Up programs set the limit at 120% of AMI. Contact the administering agency or a participating lender for the most current figures.
Are there first-time homebuyer programs specifically for Boston residents?
Yes. The Boston Home Center administers the First-Time Homebuyer Program, which offers down payment grants of up to $50,000 for buyers earning below 100% of AMI. The ONE+Boston program provides reduced mortgage rates and additional assistance for buyers purchasing within Boston. These city programs can often be combined with statewide MassHousing DPA for significant total assistance.
What happens if I sell my home before the grant retention period ends?
For FHLBank Boston grants (HOW, EBP, and Lift Up), the retention period is five years. If you sell before that period ends, you may owe a prorated repayment based on how long you owned the home. MassHousing DPA loans are due in full upon sale, refinance, or payoff of the first mortgage, regardless of timing. Review the specific repayment terms of each program before closing.
Taking the Next Step Toward Homeownership in Massachusetts
First-time homebuyer programs in Massachusetts can meaningfully reduce the financial barriers to purchasing a home, from lowering the upfront cash needed for a down payment to removing private mortgage insurance from your monthly budget. The key is starting early: completing homebuyer education, getting pre-approved with a participating lender, and working with an agent who knows how to navigate these programs on your behalf.
A local real estate agent can help you pair the right program with the right property. Meet the Centre Realty Group team and find an agent who works with first-time buyers every day.
For questions about buying your first home in Greater Boston, contact Centre Realty Group at 617-332-0077 or visit centrerealtygroup.com.
Disclaimer: This blog post is for informational purposes only and does not constitute financial, legal, or real estate advice. All data is based on publicly available sources as of 2026 and is subject to change. Please consult with a licensed real estate professional or financial advisor before making any decisions related to buying or selling property.
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