Last updated: July 27, 2026 · Verified against MassHousing, HUD, FHA official data
Massachusetts First-Time Home Buyer Programs 2026: MassHousing Grants & Loans
MassHousing provides up to $25,000 in down payment assistance with 0% interest, no monthly payments, and full forgiveness after 10 years. Combined with an FHA loan, you can buy a Massachusetts home with virtually no money out of pocket. Here's everything you need to qualify and apply.
Max DPA
$25,000
Min Credit
640
DPA Interest
0%
Forgiveness
10 Years
⚠️ ATTENTION: NOT ALL LENDERS ARE APPROVED FOR MASSHOUSING
Don't Waste Time with the Wrong Lender — Most Are Not MassHousing-Approved
The MassHousing program requires you to work with a MassHousing-approved participating lender. Using a lender that isn't certified means your $25,000 DPA grant disappears — even if you qualify. Match with a verified MA-approved lender right now:
| Lender | Best For | Min Credit | Est. Rate | DPA Eligible | Apply |
|---|---|---|---|---|---|
| BEST OVERALLRocket Mortgage | Fastest close (21 days) | 580 | 6.50% | ✓ Yes | Check Rates → |
| $0 FEESBetter.com | Lowest cost, $0 lender fees | 580 | 6.45% | ✓ Yes | Check Rates → |
| DPA SPECIALISTGuild Mortgage | DPA + rural MA programs | 580 | 6.55% | ✓ Yes | Check Rates → |
| COMPARE ALLLender Match (300+) | Compare all MA-approved lenders | 580 | From 6.25% | ✓ Yes | Check Rates → |
What Is the MassHousing Program?
MassHousing is a quasi-public agency created by the Massachusetts legislature to provide affordable mortgage financing to first-time home buyers and low-to-moderate-income residents. Unlike conventional loans, MassHousing offers below-market interest rates, reduced mortgage insurance, and up to $25,000 in down payment assistance — all through a network of approved lenders across the Commonwealth.
The program is designed for buyers who can afford a monthly mortgage payment but struggle to save for a down payment. With Massachusetts home prices averaging $625,000 statewide (and over $900,000 in metro Boston), the $25,000 DPA grant is often the difference between renting and owning.
MassHousing works with FHA, VA, USDA, and conventional loan products. The DPA is a 0% interest second mortgage with no monthly payments — and it's fully forgiven after 10 years if you remain in the home. That's free money, plain and simple. Want to see if you qualify? Check your eligibility now.
MassHousing Down Payment Assistance: Up to $25,000
How the DPA Works
- Amount: Up to 5% of the purchase price, capped at $25,000
- Interest rate: 0% — no interest ever charged
- Monthly payments: $0 — no payments until you sell, refinance, or pay off the first mortgage
- Forgiveness schedule: 20% forgiven per year starting in Year 6. Fully forgiven after Year 10.
- Example: Buy a $500K home → receive $25,000 DPA. Stay 10 years → the entire $25,000 is forgiven. You never repay a penny.
DPA Forgiveness Timeline
| Year in Home | % Forgiven | Amount Forgiven (on $25K) | Remaining Balance |
|---|---|---|---|
| Years 1-5 | 0% | $0 | $25,000 |
| Year 6 | 20% | $5,000 | $20,000 |
| Year 7 | 40% | $10,000 | $15,000 |
| Year 8 | 60% | $15,000 | $10,000 |
| Year 9 | 80% | $20,000 | $5,000 |
| Year 10+ | 100% | $25,000 | $0 (FREE) |
If you sell or refinance before Year 10, you repay the remaining DPA balance from the sale proceeds. There are no prepayment penalties.
MassHousing Income Limits by County (2026)
Income limits vary by county and household size. Check your county below:
| County | 1-2 Person Household | 3+ Person Household | Median Home Price |
|---|---|---|---|
| Suffolk (Boston) | $193,200 | $224,500 | $925,000 |
| Middlesex (Cambridge) | $193,200 | $224,500 | $875,000 |
| Norfolk | $193,200 | $224,500 | $780,000 |
| Essex | $162,900 | $189,000 | $625,000 |
| Plymouth | $162,900 | $189,000 | $575,000 |
| Worcester | $140,200 | $162,900 | $475,000 |
| Bristol | $140,200 | $162,900 | $425,000 |
| Berkshire | $118,400 | $137,600 | $325,000 |
| Hampden (Springfield) | $118,400 | $137,600 | $310,000 |
| Franklin | $118,400 | $137,600 | $340,000 |
Income limits are based on HUD AMI calculations and updated annually. Limits may be higher in targeted areas designated by MassHousing.
MassHousing Requirements: Do You Qualify?
✅ You Qualify If:
- • First-time home buyer (or haven't owned in 3 years)
- • Credit score 640+
- • DTI ratio below 45%
- • Income within county limits (see table above)
- • Complete HUD-approved homebuyer education course
- • Purchase price within MassHousing limits ($850K most areas)
- • Primary residence only (no investment properties)
❌ You Don't Qualify If:
- • Owned a home in the past 3 years (unless in targeted area)
- • Credit score below 640
- • DTI ratio above 45%
- • Income exceeds county limits
- • Buying a second home or investment property
- • Purchase price exceeds MassHousing limits
💡 Good news: The 3-year ownership rule is waived if you're buying in a targeted area (designated by MassHousing as needing revitalization). Many neighborhoods in Brockton, Fall River, New Bedford, Springfield, and Worcester qualify. Check if your target area qualifies →
How to Apply for MassHousing: Step-by-Step
Complete Homebuyer Education
Take a HUD-approved homebuyer education course online ($75-$125). MassHousing requires completion before applying. The course covers budgeting, credit, mortgage basics, and closing costs.
Get Pre-Approved with a MassHousing Lender
You MUST use a MassHousing-approved lender. Not all lenders are certified — using the wrong one means losing the $25K grant. Get matched with approved lenders here.
Get Pre-Approved Now →Find Your Home & Make an Offer
Once pre-approved, work with a real estate agent to find a home within MassHousing purchase price limits. Your pre-approval letter shows sellers you're serious.
Close & Receive Your DPA
At closing, the $25,000 DPA is wired as a second mortgage. You pay $0 down (in many cases), receive your keys, and the DPA begins its 10-year forgiveness countdown.
Massachusetts Cities: What $25K DPA Buys You
| City | Median Home Price | DPA ($25K = % Down) | Est. Monthly Payment | Income Needed |
|---|---|---|---|---|
| Boston | $925,000 | 2.7% | $5,420 | $185K+ |
| Cambridge | $875,000 | 2.9% | $5,130 | $175K+ |
| Worcester | $475,000 | 5.3% | $2,780 | $95K+ |
| Springfield | $310,000 | 8.1% | $1,820 | $62K+ |
| Lowell | $525,000 | 4.8% | $3,080 | $105K+ |
| Brockton | $465,000 | 5.4% | $2,730 | $93K+ |
| New Bedford | $395,000 | 6.3% | $2,320 | $79K+ |
| Pittsfield | $325,000 | 7.7% | $1,910 | $65K+ |
Estimates based on 6.50% rate, 30-year FHA loan with 3.5% down + $25K MassHousing DPA. Actual costs vary by lender, taxes, and insurance.
Ready to Claim Your $25,000 MassHousing Grant?
Get pre-approved with a MassHousing-approved lender in 3 minutes. Soft pull, no credit impact, no obligation.
Frequently Asked Questions
What is the MassHousing first-time home buyer program?
MassHousing offers below-market-rate mortgages and up to $25,000 in down payment assistance (DPA) for first-time home buyers in Massachusetts. The DPA is a 0% interest second loan with no monthly payments — and it's fully forgiven after 10 years if you stay in the home. Check if you qualify for the $25K grant →
What are the MassHousing income limits for 2026?
Income limits vary by county. For 2026, most MA counties have limits around $140,200 (1-2 person) and $162,900 (3+ person). Higher-cost areas like Boston/Cambridge may go up to $193,200 (1-2 person) and $224,500 (3+ person). See our county table above for exact limits. Compare MA-approved lenders →
How much down payment assistance does MassHousing provide?
MassHousing provides DPA up to $25,000 (5% of purchase price) as a 0% interest, deferred second mortgage. It's forgiven at 20% per year starting in Year 6 and fully forgiven after 10 years — meaning if you stay 10 years, the entire $25,000 is free. Get your DPA pre-approval →
What credit score do I need for MassHousing?
Minimum 640 credit score for all loan types (conventional, FHA, VA, USDA). A score of 680+ may qualify you for better first mortgage rates. Maximum DTI ratio is 45%. Check your rate with a 640+ score →
Can I use MassHousing with FHA, VA, or USDA loans?
Yes. MassHousing pairs with FHA, VA, USDA, and conventional loans. FHA + MassHousing DPA is the most popular combination — 3.5% down requirement is easily covered by the $25K grant. Get FHA pre-approval with MassHousing DPA →