First-Time Home Buyer Programs in Massachusetts 2026
MassHousing, which calls itself “the state’s housing bank,” pairs Massachusetts first-time buyer mortgages with a down payment second loan: $30,000, interest-free and deferred, with Workforce Advantage loans, or $25,000 repaid over 15 years with its other mortgages. The Massachusetts Housing Partnership’s ONE Mortgage needs 3% down and no PMI.
Neither agency lends to you directly. MassHousing works through “more than 80 lending partners”: the lender decides whether you qualify and closes the loan, and “After closing, MassHousing purchases your loan from the lender and you make your monthly mortgage payments to MassHousing.” ONE Mortgage also goes through participating lenders. The terms below come from both agencies’ sites and MassHousing’s lender documents, read on September 24, 2026.
MassHousing Down Payment Assistance after July 2, 2026
MassHousing’s consumer page lists three DPA options: Option 1, “an interest-free deferred payment second mortgage loan” of up to $30,000, and Options 2 and 3, 15-year amortizing seconds of up to $25,000 at a fixed 2% or 3%. MassHousing’s lender announcement of June 24, 2026 and its July 6, 2026 product matrix set which option goes with which first mortgage. MassHousing stopped taking rate locks for the expanded 0% deferred DPA (product 4007) after July 2, 2026, “Excluding the WFA products.” It then reinstated “the 15-year, amortizing $25,000 DPA second mortgage” at 2% and 3% for new locks from July 6.
| First mortgage | Who | DPA that goes with it | Income test |
|---|---|---|---|
| Workforce Advantage 4.0 (conventional HFA Preferred / HFA Advantage, or FHA) | First-time buyers only | Required: fixed $30,000, 0% deferred, due on sale, refinance or payoff of the first mortgage | Total household income, by community and household size |
| FTHB FHA; HFA Preferred / HFA Advantage up to 80% AMI or above 80% AMI | FTHB FHA is first-time only. The conventional loans have no first-time requirement unless you take DPA | Fixed $25,000, 15-year amortizing, 2% or 3% based on AMI | 80% or 135% of AMI |
Every option is a loan. MassHousing’s page says “The DPA Loan must be paid off if the property is sold or refinanced, or if the first mortgage is paid off,” and its product matrix adds that MassHousing “will not subordinate the DPA Mortgage.” On a $25,000 amortizing second, MassHousing’s own payment examples are 180 payments of $160.88 at 2% and $172.62 at 3%. The assistance can be combined with other programs, “such as the Federal Home Loan Bank Boston’s Equity Builder,” and MassHousing points out that many cities and towns run their own first-time buyer help. Our Massachusetts down payment assistance page covers those sources side by side.
Workforce Advantage: the first-time-only MassHousing loan
Workforce Advantage 4.0 is the product the deferred $30,000 is tied to. MassHousing’s product matrix (effective July 6, 2026) describes it as conventional financing up to 97% loan-to-value with “No Mortgage insurance cost paid by Borrower”: MassHousing pays a single mortgage insurance premium. An FHA version finances up to 96.5%, and MassHousing does not cover its upfront FHA premium. On a one-unit home the conventional version needs no borrower contribution. Two- to four-unit purchases need 3%.
Income is measured for the whole household. In Boston, Chelsea, Revere and Winthrop, the Form L-101 WFA limit (effective June 15, 2026) is $72,000 for one person, $102,840 for four and $135,780 for eight. Other communities have their own rows.
MassHousing’s other first mortgages and their limits
The FTHB FHA product (first-time buyers only) and the conventional HFA Preferred / HFA Advantage loans use borrower income measured against area median income. For Boston, Chelsea, Revere and Winthrop, Form L-101 HFA (effective June 15, 2026) lists $124,000 at 80% of AMI and $209,250 at 135%. MassHousing notes that these AMI figures come from FHFA “and may differ from the median income posted on HUD’s website.” None of these products has an acquisition cost limit. The loan amount is capped by conforming loan limits, and for FHA by the lower of the FHA and conforming limits.
MassHousing’s matrix lists a 640 score and 45% debt-to-income for these products. Its FAQ says the minimums “range from 640-700” depending on the loan type, property type and loan-to-value. The following rules apply to every MassHousing loan:
- The home must be your primary residence for the life of the mortgage, and you cannot own any other real property at closing.
- Non-occupying co-borrowers and co-signers are not allowed.
- MassHousing calls a homebuyer education class “required to be eligible for a MassHousing Mortgage and Down Payment Assistance.” For Workforce Advantage, the course has to be with a MassHousing-approved counseling agency. On a 2-4 family purchase, at least one borrower signing the note also completes landlord counseling before closing.
- National Guard and Reserve members, active-duty military, veterans and Gold Star Families “may be eligible for a $2,500 closing cost credit.”
- Loans insured by MassHousing come with MI Plus. If you lose your job, it covers principal and interest for up to six months, at up to $4,000 a month, at no extra cost.
ONE Mortgage from the Massachusetts Housing Partnership
ONE Mortgage is a separate program run by the Massachusetts Housing Partnership (MHP), a public nonprofit that works with the Governor and the Executive Office of Housing and Livable Communities. MHP lists “As little as 3% down,” a “Low, fixed interest rate,” “No Private Mortgage Insurance (PMI)” and “Financial assistance, for eligible buyers.” That assistance is an MHP interest subsidy that “gradually decreases over the first seven years of your loan.” MHP’s requirements page lists these conditions:
- You must be a first-time buyer, meaning you “have not owned a home at any point in the last three years.”
- You put 3% down on a condo, single-family or two-family home, or 5% on a three-family home. A down payment program or a family gift can count toward it.
- Household income must be under limits that vary by community and household size. Total household assets must be under $100,000, not counting most retirement and college savings accounts.
- Your score must be at least 640 for a single-family home or condo and 660 for a two- or three-family home. There are options for buyers with no credit history.
- If you stop living in the home, you must refinance out of ONE Mortgage.
In Boston, ONE+Boston “combines City of Boston funds with the affordable features of ONE Mortgage” for first-time buyers who already live in Boston and are buying there. It is a City of Boston layer, not a statewide program. MHP’s page lists an income limit of $171,400 for a household of four ($120,000 for one person) and “enhanced down-payment assistance through the City of Boston,” but gives no dollar figure for the city’s share.
Massachusetts first-time buyer questions
Is the MassHousing $30,000 a grant?
No. It is a 0% deferred second mortgage, and the whole balance is due when you sell, refinance or pay off the first mortgage. For rate locks after July 2, 2026, it comes only with Workforce Advantage loans.
Can I use MassHousing DPA and ONE Mortgage together?
MassHousing’s DPA must be paired with a MassHousing first mortgage, and ONE Mortgage is MHP’s own first mortgage, so they are two separate routes. ONE Mortgage does allow “a down payment program” toward its 3% minimum.
I owned a condo until 2022. Am I shut out?
Not from ONE Mortgage, if you have owned nothing in the last three years. For MassHousing, the first-time rule applies to Workforce Advantage, FTHB FHA and any loan with DPA. The conventional HFA loans without DPA have no first-time requirement.
Can I buy a triple-decker?
Yes. MassHousing finances 2-4 family homes with landlord counseling, and ONE Mortgage allows a three-family home with 5% down.
Can I use a MassHousing loan to buy in New Hampshire?
No. MassHousing says its mortgages “can only be used to buy property in Massachusetts.”
Agency pages: MassHousing Down Payment Assistance, ONE Mortgage requirements. On askdoss: Massachusetts closing costs, the Massachusetts state page, pre-approval steps, FHA basics for 2026, the VA guide, FHA against conventional, and the affordability, payment and down payment calculators. Next door: Connecticut, Rhode Island, New Hampshire.