Guides / Down Payment Assistance / Massachusetts

Down Payment Assistance in Massachusetts

Massachusetts does have distinct, real state-level down payment assistance run through MassHousing (the state's housing finance agency) and the Massachusetts Housing Partnership (MHP), a state-chartered public agency — so a dedicated regional/city fallback was not needed. The flagship offering is MassHousing's Down Payment Assistance program (up to $30,000, 0% interest, deferred), supplemented in 2026 by a Healey-administration expanded $25,000 0%-interest option for buyers up to 135% of Area Median Income (this expanded window closed early on July 2, 2026 due to demand, though the standard $30,000 DPA program continues). Separately, MHP's ONE Mortgage program offers first-time buyers a 3%-down, no-PMI mortgage. The previously prominent MassDREAMS grant (up to $50,000) is confirmed closed and no longer accepting applications, so it is flagged as historical only.

Programs

MassHousing Down Payment Assistance (DPA)
MassHousing (Massachusetts Housing Finance Agency, the state's official housing finance agency)
Amount: Up to $30,000 at 0% interest with deferred repayment (no monthly payments; repaid at sale, payoff, or refinance). Alternative options exist at up to $25,000 with 2% or 3% interest on a 15-year amortization, depending on loan structure chosen.
Type: Deferred-payment / low-interest second loan (down payment and closing cost assistance), paired mandatorily with a MassHousing first mortgage
Must be an income-eligible first-time homebuyer (generally at or below 100% of Area Median Income, higher in Gateway Cities); household income must be under $209,250/year per MassHousing's stated ceiling; minimum credit score around 640, though ~680 (single-family/condo) or 700 (multi-family) is cited by some sources to access the full/best terms; must purchase a primary residence (single-family, condo, or 2-4 family) in Massachusetts; must be paired with a MassHousing mortgage. Source: masshousing.com/home-ownership/homebuyers/down-payment-assistance
Expanded 0% Interest Homebuyer Assistance (Healey Administration initiative)
MassHousing, announced by Governor Maura Healey's administration
Amount: Up to $25,000 at 0% interest, deferred repayment (repaid at sale/refinance/payoff); estimated to save borrowers up to $31,000 over the life of the loan versus market-rate financing. Program had a ~$25 million total budget serving an estimated 1,000 families.
Type: Time-limited expanded down payment/closing-cost assistance (deferred loan)
First-time homebuyers earning up to 135% of Area Median Income (ranging from about $205,335 in eastern Massachusetts down to about $129,870 in Hampden County, varying by county); required locking a MassHousing mortgage within a limited window (originally April 27-July 31, 2026, but due to high demand the window closed early, with a lock deadline of July 2, 2026). Applicants after that date fall back to MassHousing's standard DPA program above. Source: mass.gov news release and CBS News Boston coverage.
ONE Mortgage Program
Massachusetts Housing Partnership (MHP), a state-chartered public housing agency, in partnership with participating lenders and the state
Amount: No direct cash grant; instead provides a 30-year fixed-rate mortgage requiring only 3% down payment (5% for 3-family properties) with no private mortgage insurance (PMI) required, which can save borrowers hundreds of dollars per month versus a conventional low-down-payment loan. Down payment can be gifted or combined with other DPA programs.
Type: First mortgage loan product (not a grant), reduced down payment with subsidized/no PMI
Must be a first-time homebuyer, defined as not having owned a home in the past 3 years; household income must be under program limits that vary by community and household size (generally up to 100% of Area Median Income, with an MHP subsidy available below 80% AMI); minimum credit score of 640 for single-family/condo purchases, 660 for 2-3 family properties (options exist for borrowers without traditional credit history); total household assets must be under $100,000 (excluding most retirement and college savings accounts); completion of a homebuyer education class is required. Source: mhp.net/one-mortgage/homebuyer-resources/program-requirements and mymasshome.org/one-mortgage.
MassDREAMS Grant (CLOSED - no longer accepting applications)
MassHousing, federally funded (using American Rescue Plan Act funds), targeted at Disproportionately Impacted Communities
Amount: Was up to $50,000, structured as up to 5% of the purchase price, as a non-repayable grant (no repayment required if the home remains the buyer's primary residence and program requirements are met).
Type: Non-repayable grant (now closed)
Historical program required first-time buyer status and residency in a designated Disproportionately Impacted Community; this program is confirmed CLOSED as of the current search results and is no longer accepting new applications. It is included here only for context, since it was a major recent state program; buyers should rely on the still-active MassHousing DPA and ONE Mortgage programs above instead. Source: masshousing.com/en/home-ownership/homebuyers/massdreams and multiple secondary confirmations.

Facts on this page reflect research current as of 2026-07-05. Programs, rates, and laws change — confirm current figures with the relevant state agency before relying on them.

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