Down Payment Assistance in Massachusetts: 2026 Programs, Grants & How to Qualify
Coming up with a down payment is the biggest hurdle most Massachusetts buyers face. With a statewide median sale price of $667,628 (Redfin, May 2026), a standard 20% down payment runs well over $130,000 — and even a 3% down payment is more than $20,000.
The good news: Massachusetts runs one of the most generous down payment assistance programs in the country. Through MassHousing, eligible buyers can get up to $30,000 toward a down payment and closing costs, and as of 2025 that help is available in every city and town in the Commonwealth — not just select communities. This guide covers the programs, who qualifies, and how to apply.
Massachusetts down payment assistance at a glance
| Program | What you get | Structure | Who it’s for |
|---|---|---|---|
| MassHousing DPA (Option 1) | Up to $30,000 | Interest-free deferred second mortgage; repaid on sale, refinance, or payoff | Buyers using a MassHousing first mortgage |
| MassHousing DPA (Options 2 & 3) | Up to $25,000 | Amortizing second at 2% (Option 2) or 3% (Option 3) APR over 15 years | Buyers who prefer to pay down the assistance |
| ONE Mortgage | Low 3% down + no PMI | 30-year fixed, below-market rate, extra subsidy for qualified buyers | First-time buyers statewide |
Source: MassHousing Down Payment Assistance and ONE Mortgage — Mass.gov. Verified 2026-07-11.
MassHousing Down Payment Assistance: up to $30,000, statewide
MassHousing’s flagship program gives eligible buyers up to $30,000 for their down payment and closing costs. The most-used form (Option 1) is an interest-free, deferred second mortgage: you make no monthly payments on the assistance, and you repay it only when you sell the home, refinance the first mortgage, or pay the first mortgage off.
Two other structures let you pay the assistance down over time — Option 2 offers up to $25,000 at a fixed 2% rate, and Option 3 offers up to $25,000 at a fixed 3% rate, each amortized over 15 years.
The key 2025 change: MassHousing expanded eligibility so the assistance is available in all communities in the Commonwealth of Massachusetts. If you’ve read older guides that limited this help to “Gateway Cities” or a short list of towns, that framing is out of date.
To use the DPA, you pair it with a MassHousing first mortgage. Assistance is a second loan behind that first mortgage, so both are underwritten together.
ONE Mortgage: 3% down and no PMI
If your bigger concern is the monthly payment rather than the cash to close, look at ONE Mortgage, the state-backed loan from the Massachusetts Housing Partnership. It’s a 30-year fixed-rate loan with:
- A 3% minimum down payment for a single-family home, condo, or two-family property (5% for a three-family).
- No private mortgage insurance — for most buyers, skipping PMI saves a few hundred dollars a month versus a conventional loan at the same rate.
- A below-market interest rate, plus an added subsidy that lowers payments further for qualified borrowers.
To qualify you must be a first-time buyer (no ownership in the last three years), stay under the program’s income limit for your community, hold less than $100,000 in assets, and meet a minimum credit score of 640 (660 for a two- or three-family home). More than 40 lenders across the state offer it. You can combine ONE Mortgage strategy questions with the MassHousing DPA to lower both your cash-to-close and your monthly payment.
Income limits: who qualifies
MassHousing programs use income limits that vary by community and household size. In the highest-limit areas — which include eastern Massachusetts counties such as Essex, Middlesex, Norfolk, Plymouth, and Suffolk — first-time buyers can earn up to $209,250 per year and still qualify. Limits are lower in other parts of the state, so check the current figure for your city or town before you assume you’re over the line.
Confirm your community’s limit on the MassHousing income limits page.
FHA loan limits in Massachusetts for 2026
If you go the FHA route instead of (or alongside) a state program, the maximum FHA loan depends on your county. Massachusetts spans the full national range in 2026:
| Area | 2026 FHA limit (1-unit) |
|---|---|
| Lower-cost counties (much of western & central MA) | $541,287 (national floor) |
| Greater Boston — Suffolk, Middlesex, Norfolk, Essex, Plymouth | $1,249,125 (national ceiling) |
| Islands — Nantucket, Dukes | $1,249,125 (national ceiling) |
For reference, the 2026 conforming baseline is $832,750. Because most of the state’s population lives in high-cost counties, many Massachusetts buyers qualify for the full $1,249,125 ceiling. Confirm your exact county limit with the HUD FHA mortgage-limits lookup before you shop. See our 2026 FHA loan requirements guide for credit-score and down-payment rules.
How to qualify and apply, step by step
- Check the income limit for your community on the MassHousing income-limits page.
- Confirm first-time-buyer status if you’re pursuing ONE Mortgage (no ownership in the past three years).
- Run your numbers. Use our how much house can I afford calculator and closing-cost calculator to see your real cash-to-close after DPA.
- Find a participating lender. MassHousing and ONE Mortgage are offered through approved lenders, not the state directly.
- Get pre-approved for the MassHousing first mortgage; the DPA second is underwritten with it.
- Complete a homebuyer education course if your lender or program requires it.
If you’re short on cash even after DPA, our guide to buying a house with no money down covers zero-down options like VA and USDA, and you can check rural eligibility in our 2026 USDA loan requirements guide.
Nearby states
Buying near a border, or comparing markets? See down payment assistance in Connecticut, Rhode Island, New Hampshire, Vermont, Maine, New York, and New Jersey. For the national picture, start with our complete guide to down payment assistance. Shopping for a loan? Compare the best mortgage lenders in Massachusetts for 2026.
Frequently asked questions
How much down payment assistance can I get in Massachusetts?
Through MassHousing, eligible buyers can receive up to $30,000 as an interest-free deferred second mortgage (Option 1), or up to $25,000 as an amortizing second at 2% or 3% (Options 2 and 3). The amount is capped by the program and your loan; it can cover down payment and closing costs.
Is MassHousing down payment assistance available everywhere in the state?
Yes. As of 2025, MassHousing DPA is available in every city and town in the Commonwealth. Older “select cities only” or “Gateway Cities” descriptions no longer reflect the current program.
Do I have to repay the MassHousing down payment assistance?
Yes, but the terms are favorable. The Option 1 assistance is a deferred, interest-free second mortgage — you make no monthly payments and repay it when you sell, refinance, or pay off your first mortgage. Options 2 and 3 are repaid in monthly installments over 15 years at 2% or 3%.
What credit score do I need for ONE Mortgage?
You generally need a minimum credit score of 640 for a single-family home or condo, and 660 for a two- or three-family property. You must also be a first-time buyer, meet your community’s income limit, and hold less than $100,000 in assets.
What income can I earn and still qualify?
Income limits vary by community and household size. In the highest-limit eastern Massachusetts areas, first-time buyers can earn up to $209,250 per year. Check your specific city or town’s limit on the MassHousing income-limits page, because it may be lower where you’re buying.
Can I combine down payment assistance with an FHA loan?
Down payment assistance in Massachusetts is designed to pair with a MassHousing first mortgage. If you use FHA financing, your maximum loan is set by your county limit — from $541,287 in lower-cost counties up to $1,249,125 in Greater Boston and the islands for 2026.
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