Massachusetts Down Payment Assistance

Massachusetts is a rich historical location with many beautiful cities. However, it's also one of the states with the highest mortgage debt and highest median housing prices. This can make home ownership in Massachusetts difficult.

Luckily, local and national programs exist that offer down payment assistance and grants to qualified applicants.

If you're thinking about purchasing a home in Massachusetts, you may have options to help with the down payment or closing costs. Read below to learn more about any program and see if it can help with your home purchase!

MassHousing Down Payment Assistance Program

Down payment assistance is available to first-time homebuyers in Massachusetts who choose to get a MassHousing Loan. Applicants must meet certain income limits in order to qualify. These limits are higher in Boston and certain other gateway cities, which are Attleboro, Barnstable, Brockton, Chelsea, Chicopee, Everett, Fall River, Fitchburg, Haverhill, Holyoke, Lawrence, Leominster, Lowell, Lynn, Malden, Methuen, New Bedford, Peabody, Pittsfield, Quincy, Revere, Salem, Springfield, Taunton, Westfield, and Worcester. As of 2020, income limits are $147,420 for Boston and the other gateway cities, and $113,300 for other parts of Massachusetts.

Up to $15,000 (or 5% of the house’s purchase price – whichever is the smaller amount) of down payment assistance is offered in the form of a 15-year loan with a fixed interest rate of 2%. If the property is sold or refinanced before the end of the 15-year loan, repayment of the loan becomes due.

Eligible properties include houses with up to 4 units as well as condominiums.

Operation Welcome Home

Offered through MassHousing, Operation Welcome Home provides up to $2,500 in closing cost assistance for active-duty and retired members of the military, as well as members of the National Guard, Reserves, and Gold Star families.

For certain cities (Boston, Chelsea, Cambridge, Everett, Fall River, Lawrence, Lynn, North Adams and Somerville), applicants are not required to be first-time homebuyers in order to be eligible. For the rest of the state, applicants must be first-time homebuyers. Applicants must also fall under certain loan and income limits.

Eligible properties include houses with up to 4 units in the state of Massachusetts.

Workforce Advantage

Workforce Advantage is a MassHousing Loan that has down payment assistance for qualified borrowers. It’s meant for low-income first-time homebuyers looking to purchase property in Boston, Attleboro, Barnstable, Brockton, Chelsea, Chicopee, Everett, Fall River, Fitchburg, Haverhill, Holyoke, Lawrence, Leominster, Lowell, Lynn, Malden, Methuen, New Bedford, Peabody, Pittsfield, Quincy, Revere, Salem, Springfield, Taunton, Westfield, or Worcester.

In order to be eligible, borrowers must not earn more than 80% of the Area Median Income, or AMI. Down payment assistance is offered in the form of loan for up to 3% of the property’s purchase price, or $15,000 (whichever is the smaller amount).

Workforce Advantage was made possible thanks to a $2.5 million grant from the Commonwealth of Massachusetts.

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