Down Payment Assistance in Massachusetts

What is down payment assistance in Massachusetts?

Massachusetts is known for its high home prices, but that doesn’t mean homeownership is out of reach. With the right resources, it may be more affordable than you think.

Homebuyers may be able to use down payment assistance (DPA) programs to help them purchase a property. Down payment assistance is made up of national, state, local, and employer-sponsored programs designed to support homebuyers who can afford a monthly mortgage payment but need help coming up with the upfront cash needed for a down payment and closing costs.

Offered by government agencies, nonprofits, and some private organizations, DPA provides financial support to help homebuyers cover the down payment, closing costs, or both. It helps to bridge the gap between what buyers have saved and the funding they need to buy.

It may also provide homebuyers with a financial cushion, so they don’t have to drain all of their savings to afford homeownership.

From the Berkshires to Cape Cod, Massachusetts homebuyers can tap into statewide, local, and community-based programs that help cover the upfront costs of purchasing a home.

Assistance typically comes in one of three forms: a grant (money you don’t repay), a forgivable loan (which is gradually forgiven the longer you stay in the home), or a low-interest loan. The right option depends on the program and your individual situation.

Whether you’re a first-time homebuyer in Massachusetts or returning to homeownership after years away, there may be money available to help make up the difference between how much you’ve saved and the amount you need to close on a home.  

How does down payment assistance work?

Every down payment assistance program has its own rules, but most follow a similar path from homebuyers researching their options to funding.

Research. The DPA landscape is larger than most people realize. In fact, there were more than 2,700 DPA programs as of July 2026, according to Down Payment Resource, a company that connects homebuyers to the programs. Assistance may be available at the state, county, city, or employer level, and different programs have different eligibility requirements. If one program doesn’t fit your situation, keep looking. There may be others that will.

Determine your eligibility. Common requirements include income limits, minimum credit scores, and property location restrictions. Understanding your financial profile, where you want to buy, and how long you plan to live in the home will help you identify which programs are worth pursuing.

Apply. Once you find a down payment program that fits your criteria and eligibility, you’ll submit an application and supporting documents. Expect to provide proof of income, personal identification, credit information, and details about the property you intend to purchase.

Get approved and receive funding. If your application is approved and your information verified, you’ll receive the assistance at closing. It’s typically applied directly toward your down payment, closing costs, or both, depending on the program’s terms.

It is important to note that most DPA programs have their own conditions, which may include having to repay the loan in part or full if you move early, sell, or refinance the home. Make sure to always review and understand the terms and conditions of any loan you use.

Additionally, some programs may run out of funding. That’s why it’s important to check availability and stay on top of deadlines.

Who qualifies for down payment assistance?

Many people don’t realize they may be able to qualify for down payment assistance. DPA isn’t just a tool for first-time and first-generation homebuyers or those with lower incomes.

The assistance is available for a wide variety of people in a range of financial situations. Nearly two-thirds, 62%, of current DPA programs serve homebuyers earning more than $100,000 a year and 11% have no income limits, according to Down Payment Resource.

Additionally, more than a third, 38%, of DPA programs don’t have a first-time homebuyer requirement.

There are DPA programs for: First-generation homebuyers, Native American homebuyers, veterans, educators, law enforcement, first responders, municipal employees, those who earn less than a certain threshold, and more. Some programs also exist for buyers who purchase properties in certain communities.

Some organizations also offer homeownership assistance programs for their employees, so make sure you check with your employer as well.

Types of down payment assistance

The majority of DPA programs fall into two categories: Second mortgages and grants.

Second mortgages are by far the most common form of down payment assistance, making up 56% of all programs, according to Down Payment Resource. This is a separate loan running alongside your primary mortgage, with its own monthly payment.

Second mortgages are often set up to be a deferred or forgivable loan to reduce the upfront cost. If you have a deferred loan, it means that it doesn’t have to be repaid until you sell, refinance, or move out. A forgivable loan is gradually forgiven if you live in the home for a set amount of time.

Grants make up 9% of DPA programs and are the most straightforward form of assistance. They’re a gift, with no repayment required under any circumstances. As always, read the terms carefully to make sure you understand any conditions attached.

Finding down payment assistance

Down Payment Resource offers an interactive search feature that allows you to search available DPA programs by location as well as by things like your occupation, military status, or disability status.

New American Funding (NAF) also offers a down payment assistance program called Pathway to Homeownership. Specifically available to first-time homebuyers, eligible borrowers may receive up to $6,000* in financial assistance. This money can be used to help with your down payment, closing costs, or other costs. It can also be combined with other DPA programs.

National down payment assistance programs

While there is not national database of nation-wide DPA programs available, there are several main ones that are notable. They include:

The Chenoa Fund

The Chenoa Fund is administered by CBC Mortgage Agency (a federally chartered tribal housing finance authority). It is one of the most accessible national DPA programs available because it drops two of the most common barriers to qualification. It has no income limits and no first-time homebuyer requirement.

The program covers the required 3.5% down payment on Federal Housing Administration (FHA) loans. The aid is structured either as a forgivable second mortgage or a repayable second mortgage, depending on the option selected.

Borrowers need a minimum 600 credit score to qualify. The program is available in all states except New York.

Since it works through a network of participating lenders nationwide, buyers can access it through their mortgage lender rather than applying directly.

The National Homebuyers Fund

The National Homebuyers Fund (NHF) is a nonprofit organization that provides down payment and closing cost assistance of up to 5% of the loan amount. It’s administered as a grant, meaning no repayment is required.

It has no first-time homebuyer requirement, making it available to repeat buyers who may not qualify for programs with that restriction. It works with FHA, U.S. Department of Veterans Affairs (VA), U.S. Department of Agriculture (USDA), and Conventional loans.

The credit score and debt-to-income requirements are flexible.

The NHF is available in most states and is accessed through a network of participating lenders rather than through a direct application to the fund itself.

Many of the national DPA programs are offered by various lenders and private non-profit organizations like the Homeownership Council of America.

Down payment assistance programs in Massachusetts

The Massachusetts Housing Finance Agency is the state’s housing finance agency and the central source for statewide DPA programs. MassHousing doesn't lend directly to buyers. Homebuyers apply through an approved participating lender, which will combine the assistance with the mortgage.

All MassHousing programs share a few baseline requirements:

• Credit score requirements vary depending on the type of loan, property type, and loan-to-value ratio. Minimum scores range from 640-700
• Maximum debt-to-income (DTI) ratio of 45% (DTI is your debt compared to your earnings.)
• The home must be in Massachusetts and used as your primary residence
• You must meet income limits and be a first-time homebuyer

MassHousing Down Payment Assistance

MassHousing offers down payment assistance in the form of a second mortgage of up to $30,000 for first-time homebuyers in the state of Massachusetts. An approved lender will determine which type of assistance and the amount a borrower is eligible for based on income. MassHousing offers three options for DPA:

Option 1 DPA:

• This is an interest-free deferred payment second mortgage loan, which means no payments are due until the property is sold, refinanced, or the first mortgage is paid off. At that point, the entire balance of the second mortgage will be due.
• The maximum amount available through Option 1 is $30,000.

Option 2 DPA:

• This is a 15-year amortizing second mortgage loan at a fixed rate of 2%. Borrowers need to make monthly payments of principal and interest for 15 years on this second loan, in addition to the monthly payments of their first mortgage loan.
• The maximum amount available through Option 2 is $25,000.

Option 3 DPA:

• This is a 15-year amortizing second mortgage loan at a fixed rate of 3%. Borrowers need to make monthly payments of principal and interest for 15 years on this second loan, in addition to the monthly payments of their first mortgage loan.
• The maximum amount available through Option 3 is $25,000.

Closing credit for veterans and servicemembers

MassHousing also offers a $2,500 closing cost credit for members of the National Guard or Reserves, active-duty military, veterans, or Gold Star Families.

Beyond MassHousing’s statewide programs, several Massachusetts cities have established their own DPA programs. Many of these can be stacked with MassHousing assistance. That means some eligible buyers may be able to combine multiple programs and significantly increase their total help.

This can help them to cover their down payment, closing costs, or simply have a little left over as a financial cushion.

Boston down payment assistance program

Boston anchors Massachusetts’ largest metropolitan area. (Metros are the main city and surrounding towns, suburbs, and smaller urban areas.) The city draws homebuyers with its access to top employers, world-class hospitals, and leading universities.

Boston down payment assistance programs include:

First-Time Homebuyer Program: This down payment assistance program provides income-eligible homebuyers in Boston with financial assistance. Amounts are based on the area median income (AMI). This is the midpoint of local earnings for an area, calculated by the U.S. Department of Housing and Urban Development.

• For homebuyers with income less than 100% of AMI, the grant amount is 3% of the purchase price, maximum of $50,000, plus closing costs if applicable.
• For homebuyers with income between 101% and 135% of AMI, the grant amount is 2% of the purchase price, with a maximum loan of $35,000.

Homebuyers for the first-time homebuyer program must not have owned property in the past three years, have graduated from a homebuying 101 class, have assets less than $100,000, and must receive mortgage pre-approval from an approved lender.

ONE+Boston Homebuyer Program: This program combines City of Boston funds with the ONE Mortgage to help income-eligible, first-time Boston homebuyers purchase a home in the city. The initiative offers heavily discounted, fixed, 30-year interest rates, no private mortgage insurance (PMI), and enhanced down-payment assistance through the city of Boston. Program requirements include:

• Must be a current resident of the city of Boston and be purchasing within the city of Boston.
• Be a first-time homebuyer (not have owned a home in the last three years).
• Take a homebuyer class to get ready for the process.
• Meet down payment requirements. The program requires a 3% down payment to buy a condo, single-family home, or two-family home. At least 1.5% of the purchase price must be from your own savings. The City of Boston provides enhanced down payment assistance as part of this program.
• Meet household income and credit score

Worcester down payment assistance programs

Homebuyers priced out of Boston often turn to Worcester thanks to a more affordable housing stock. Located 40 miles west of Boston, Worcester is the second largest city in New England, and boasts a growing downtown with restaurants, breweries, and mixed-use developments.

City of Worcester Down Payment Program: This federally funded program offers income-qualified first-time homebuyers with down payment and closing costs assistance of up to $5,000. Worcester program requirements include:

• Applicants must be a first-time homebuyer.
• Property must be located in Worcester.
• Must take approved first-time homebuyer course prior to closing.
• Must meet income eligibility requirements.

Springfield down payment assistance programs

Springfield draws homebuyers with some of the lowest home prices in Massachusetts, making it an attractive option for buyers seeking affordability without leaving the state. Located in the Pioneer Valley about 90 miles west of Boston, the city offers a lower cost of living, and a diverse cultural scene.

City of Springfield Down Payment Assistance: The program provides up to $20,000 in down payment and closing cost assistance for income-eligible first-time buyers within Springfield city limits. The program provides a 0% interest, deferred payment loan, forgiven over 10 years if the owner occupies the home as their primary residence. Forgiveness occurs upon completion of the sixth full year of occupancy, with 20% of the loan forgiven each year.

Program requirements include:

• Must be a first-time homebuyer
• Must contribute 1% of their own funds toward the purchase of the property.
• Must complete a homebuyer education program.
• Must be current on all city taxes, fees, fines, or municipal liens.
• Must be U.S. citizen or have legal immigration status eligible to receive federal benefits.

These are a few of the main down payment assistance programs available across Massachusetts. However, there may be more programs available to you based on your location in the state or your occupation.

For instance, some towns or cities may offer down payment assistance specifically for first responders or teachers. Make sure to do your own research to see if there is a program that may be right for you. And be aware that certain programs may only be available until all of the funding is used.

How to apply for Massachusetts down payment assistance

The application process for different DPA programs may change. However, some general application steps include:

1. Check your eligibility. Review income limits, credit requirements, and first-time buyer status at masshousing.com. For local programs, contact the relevant city or county housing office.  
2. Find a participating lender. MassHousing programs are only available through approved lenders in their network.
3. Get pre-qualified. Your lender reviews your income, credit, and debts to determine which programs you may qualify for to receive funding.
4. Complete homebuyer education. Enroll in an approved homebuyer education course and keep your completion certificate for closing.
5. Find your home. Work with a licensed agent to locate a qualifying Massachusetts property. Your lender will confirm if it meets program requirements.
6. Close on your home. Your lender packages your first mortgage and DPA together. Assistance funds are applied at settlement.

Massachusetts down payment assistance FAQs

^{Program details reflect August 2026 information. Down payment assistance programs are subject to change and depend on current funding availability. Always confirm income limits, eligibility requirements, and program details with your lender or the applicable program administrator before applying.}

^{*Credit up to $6,000 maximum. Due to maximum seller concession rules applicable to purchase loan transactions, this credit could be less than $6,000 in some cases where other concessions have been made to the consumer.}