Massachusetts First-Time Home Buyer Assistance Programs: The Complete List (2026)
The Short Answer
Massachusetts first-time home buyers can access assistance from four levels: state programs (MassHousing's up to $30,000 in down payment assistance, and the ONE Mortgage with 3% down and no PMI), federal loan programs (FHA, VA, USDA), regional bank grants (the Federal Home Loan Bank of Boston's Equity Builder Program, up to $15,000), and local city or town programs funded by CDBG and HOME dollars. Most buyers can combine one first mortgage with one or more assistance grants.
This is a directory: what exists, who runs it, and roughly what you get. If you want a deeper walkthrough of eligibility rules, income limits, and credit score requirements, read my companion post on how to qualify for Massachusetts first-time buyer programs.
Quick Reference: Every Program at a Glance
Now the details.
Tier 1: Statewide Programs
These are the backbone. Most Massachusetts first-time buyers end up using one of these as their first mortgage.
MassHousing Mortgage with Down Payment Assistance
What it is: An affordable first mortgage paired with down payment assistance of up to $30,000, available in every city and town in Massachusetts.
The three assistance options:
Property types: Single-family, condo, or 2–4 family, as your primary residence.
How to access it: Through one of 80+ approved lenders, you don't apply to MassHousing directly. Their homebuying team is at 888-843-6432.
Worth knowing: MassHousing periodically runs limited-time enhanced offers with rate-lock deadlines, and they sometimes close early when demand is high. Always ask your lender what's currently active.
ONE Mortgage
What it is: A state-supported first mortgage built around long-term affordability.
What you get:
3% down (5% for a three-family)
Discounted fixed 30-year rate
No private mortgage insurance, ever
Extra subsidy for buyers below 80% of area median income
The catch: Total household assets must be under $100,000: checking, savings, stocks, bonds. Most retirement accounts (401k, 403b, 457, traditional IRA) and college savings accounts don't count.
Credit minimums: 640 for single-family or condo, 660 for two- or three-family.
Property types: 1–3 units, primary residence.
ONE+ (Central Mass buyers, read this one)
ONE+ adds a permanent interest rate discount plus enhanced down payment and closing cost assistance on top of standard ONE Mortgage benefits.
Eligibility requires that you currently live in one of 29 designated communities. Three are in Central Mass:
Worcester
Fitchburg
Leominster
Also on the list: Attleboro, Barnstable, Boston, Brockton, Chelsea, Chicopee, Everett, Fall River, Framingham, Haverhill, Holyoke, Lawrence, Lowell, Lynn, Malden, Methuen, New Bedford, Peabody, Pittsfield, Quincy, Randolph, Revere, Salem, Springfield, Taunton, and Westfield.
The part people miss: you must live in a qualifying city. You don't have to buy in one. So a renter in Worcester can use ONE+ to buy in Holden, Auburn, Leicester, or anywhere else in Massachusetts.
Down payment sourcing is slightly stricter here: 3% down with at least 1.5% from your own savings (5% down with at least 3% from your own savings on a three-family).
Tier 2: Targeted MassHousing Programs
Two specialized programs worth knowing about, because lenders don't always bring them up unprompted.
Operation Welcome Home
Who it's for: Massachusetts veterans, National Guard and Reserve members, active service members, and Gold Star families.
What you get:
A $2,500 closing cost credit
Can be combined with standard down payment assistance
Access to a second down payment assistance loan of 3% of the purchase price (up to $12,000), which can get eligible borrowers to 100% financing
Important: If you're eligible for a VA loan, compare the two carefully. Sometimes a straight VA loan wins; sometimes Operation Welcome Home does. Have your lender run both.
Workforce Advantage 4.0
Who it's for: First-time buyers earning 80% or less of area median income.
What you get:
Expanded down payment assistance as a 30-year, 0% interest loan, fully deferred until you sell, refinance, or the first mortgage matures
Mortgage insurance paid by MassHousing, including MI Plus job loss protection
That job loss protection is an underrated feature. If you lose your job, it can help cover your mortgage payments for a period. Ask your lender for the specifics.
Tier 3: Federal Loan Programs
Not first-time-buyer programs exactly, but they're the financing underneath many first purchases.
FHA Loans
3.5% down with a credit score of 580 or higher. More forgiving on credit history and debt-to-income than conventional financing. The tradeoff: mortgage insurance that typically stays for the life of the loan.
VA Loans
Zero down, no PMI, for eligible veterans and service members. If you qualify, this belongs at the top of your comparison list.
USDA Loans
Zero down in eligible rural areas. Check this one if you're looking at Central Mass: more of our western and northern towns qualify than most buyers expect. Look up the specific address on USDA's eligibility map before you assume it doesn't apply.
Conventional 97, HomeReady, and Home Possible
3% down conventional options with mortgage insurance you can cancel once you reach 20% equity. HomeReady (Fannie Mae) and Home Possible (Freddie Mac) add income-based pricing benefits.
Tier 4: Regional Bank Grant Programs
These are grants, not loans, and they're consistently the most overlooked category.
Equity Builder Program (FHLB Boston)
What you get: Up to $15,000 toward down payment and closing costs.
Requirements:
First-time buyer with household income at or below 80% of AMI where you're buying
Complete an approved homebuyer education course before closing
Apply through a lender that's an approved FHLB Boston member
You must have a signed purchase and sale agreement to apply
How the timing works: Funds are released in rounds and can run out. Because you need a signed P&S first, you can't lock this in ahead of time, which means you need a lender who already knows the program and moves fast. Ask about it during pre-approval, not after your offer is accepted.
Housing Our Workforce (HOW)
A companion FHLB Boston program aimed at moderate-income buyers whose incomes fall above the Equity Builder limits. Award amounts are set by FHLB Boston and distributed through member lenders. Ask your lender whether you fit.
Tier 5: Local Programs in Central Massachusetts
This is where real money gets left on the table. Municipal programs are small, quietly advertised, and often first-come first-served, but they stack on top of everything above.
City of Worcester Down Payment Assistance
Funded through federal Community Development Block Grant dollars. There are two separate tracks, and the second one surprises people.
Track 1: If you're buying in Worcester:
Up to $5,000 (1.5%) toward down payment and closing costs
Household income at or below 80% AMI
Property must be in Worcester city limits and meet HUD habitability standards
Approved first-time buyer course completed before closing
Apply at least 45 days before closing
3-year residency restriction placed on the property
Track 2: If you work in Worcester:
Same $5,000 (1.5%)
Household income at or below 120% AMI, a notably higher ceiling
You must currently be employed and working in the City of Worcester
Property still must be located in Worcester
Same course, same 45-day rule, same 3-year restriction
That 120% AMI employee track is genuinely underused. If you work in Worcester, at a hospital, a university, the city itself, or any employer inside city limits, and you're buying in Worcester, you may qualify at an income level well above the standard limit.
Contact: 508-799-1400
Also in Worcester: the Lead Abatement Program and Worcester Housing Now. Same phone number.
One to watch: Worcester also had an ARPA-funded program offering up to $25,000 through Worcester Community Housing Resources. As of this writing it is on hold. Worth asking about in case it reopens.
Note: Worcester's published program guidelines carry an older revision date, and CDBG allocations change annually. Call to confirm current amounts and funding availability before you rely on these figures.
Fitchburg and Leominster
The City of Fitchburg administers HOME Investment Partnership Program funding for both Fitchburg and Leominster, and receives its own annual CDBG allocation as well. Both cities offer down payment assistance for income-eligible first-time buyers.
Both are also Gateway Cities, which makes residents eligible for ONE+ and certain other enhanced state programs.
Contact: City of Fitchburg Office of Housing and Development.
NewVue Communities (North Central Mass)
A NeighborWorks-affiliated nonprofit based in Fitchburg, serving the Twin Cities and 22 towns across North Central Massachusetts.
What they offer:
HUD-approved first-time homebuyer education classes
One-on-one homebuyer counseling
Additional down payment assistance through their NeighborWorks Homeownership Center
Contact: 888-978-6261
If you're anywhere in northern Worcester County, start here. Their education class satisfies state program requirements, and their counselors know which local programs are actually funded this year.
Other Central Mass towns
Smaller towns often run assistance through regional agencies, affordable housing trusts, or community development offices rather than advertising it themselves. These programs rarely rank in search results, so you have to ask.
How to find them:
Call your town hall and ask for the community development or planning office
Ask specifically about "first-time homebuyer assistance" and "affordable housing trust funds"
Ask your lender which local programs they've closed loans with recently
Check whether your town has an Affordable Housing Trust: many do, and some fund buyer assistance
Tier 6: If You're Buying a Fixer-Upper
This is my favorite category, and I'll admit the bias up front. My husband and I flipped houses before we moved back to Massachusetts, and I've done the framing, drywall, plumbing, and electrical myself.
FHA 203(k) Rehabilitation Loans
Finance the purchase and the renovation in a single mortgage, with an FHA down payment of 3.5%.
Two versions:
Limited 203(k): for non-structural work. HUD raised the maximum total rehabilitation cost from $35,000 to $75,000 for case numbers assigned on or after November 4, 2024. A lot of online content still cites the old $35,000 figure.
Standard 203(k): for major renovations including structural work. No cap beyond FHA loan limits, but requires a HUD consultant and more process.
Why this matters in Central Mass: a house needing cosmetic work often prices 10–15% below a comparable updated one. Cosmetic work is the cheapest kind. A 203(k) lets you buy the dated house and finance the kitchen, rather than competing for the already-renovated one.
Two honest cautions:
203(k) closings take longer and require contractor bids up front. Sellers in a multiple-offer situation may prefer a cleaner offer. Know that going in.
Be honest about the difference between cosmetic and structural. Paint, flooring, cabinets, and fixtures are cosmetic. Foundations, roof structure, and failing systems are not. Never buy on the assumption you'll do work you've never actually done.
Conventional renovation options
Fannie Mae HomeStyle and Freddie Mac CHOICERenovation do something similar on the conventional side, with cancellable mortgage insurance. Worth comparing if your credit is strong.
Tier 7: Employer and Other Sources
Easy to check, frequently forgotten.
Employer assistance. Many Massachusetts hospitals, universities, and large employers offer homebuyer benefits. Ten minutes with HR is worth it.
Union programs. Some trades and public employee unions offer mortgage benefits or discounts.
Habitat for Humanity. Central Mass affiliates build and sell homes to qualifying buyers, typically involving sweat equity hours.
Massachusetts Rehabilitation Commission Home Modification Loan Program. For buyers or homeowners with disabilities who need accessibility modifications.
Gift funds from family. Both MassHousing and ONE Mortgage permit gifted down payment funds, subject to documentation rules.
Programs That No Longer Exist
Worth naming, because outdated pages send people chasing them.
MassDREAMS: ended November 2022. It was funded by federal pandemic relief dollars, that money was exhausted, and the program closed. You will still find aggregator sites and even some lender pages listing it as active with "$50,000 in grants." It is not available. MassHousing's $30,000 down payment assistance is the closest current equivalent.
Worcester's ARPA down payment program: currently on hold. Not permanently gone as far as I know, but not accepting applications as of this writing.
How to Actually Stack These
The rules are simpler than they look:
One first mortgage. MassHousing or ONE or FHA or VA or conventional. You pick one.
Assistance layers on top. Down payment assistance, municipal grants, FHLB grants, and employer benefits can frequently combine with your first mortgage, and sometimes with each other.
A realistic stack for a Worcester buyer might look like:
ONE+ first mortgage (permanent rate discount, no PMI)
Plus City of Worcester DPA ($5,000)
Plus employer assistance if available
Or for a buyer elsewhere in Worcester County:
MassHousing Mortgage with Option 1 DPA ($30,000, 0%, deferred)
Plus FHLB Equity Builder grant ($15,000) if under 80% AMI
Plus a town program if one exists
Not every combination is permitted: programs have their own layering rules, and total assistance can be capped. This is exactly what an experienced loan officer is for. Ask them to map your specific stack.
Where to Start
Take a homebuyer education class. Required by nearly every program on this list, and free in most cases. Doing it first opens every door.
Find a lender who closes these loans regularly. Ask directly: "How many MassHousing, ONE, and FHLB grant loans did you close last year?" Many loan officers have never done a single one.
Ask about every layer. Bring this list. Ask specifically about local programs and FHLB grants, because those are the ones that get skipped.
Call your city or town hall. Two minutes, and it's the only reliable way to find small municipal programs.
Get fully pre-approved, then start looking.
Frequently Asked Questions
What first-time home buyer assistance programs are available in Massachusetts? Massachusetts first-time buyers can access MassHousing's down payment assistance of up to $30,000, the ONE Mortgage with 3% down and no PMI, ONE+ for residents of 29 designated communities, Operation Welcome Home for veterans, Workforce Advantage for buyers under 80% AMI, Federal Home Loan Bank of Boston grants up to $15,000, and local city or town programs funded by CDBG and HOME dollars.
How much down payment assistance can I get in Massachusetts? MassHousing offers up to $30,000 statewide as a 0% interest deferred second mortgage. The Federal Home Loan Bank of Boston's Equity Builder Program provides grants up to $15,000 for buyers under 80% of area median income. Municipal programs such as Worcester's provide up to $5,000. These can sometimes be combined.
Can I combine multiple homebuyer assistance programs in Massachusetts? You may only have one first mortgage, so you must choose between MassHousing, ONE Mortgage, FHA, VA, or conventional financing. However, down payment assistance grants, municipal programs, FHLB Boston grants, and employer benefits can often be layered on top of your first mortgage, subject to each program's rules and overall assistance caps.
Is MassDREAMS still available in Massachusetts? No. MassDREAMS ended in November 2022 when its federal pandemic relief funding was exhausted. Websites still listing it as active with grants up to $50,000 are out of date. MassHousing's down payment assistance of up to $30,000 is the closest currently available alternative.
What down payment assistance is available in Worcester, Massachusetts? The City of Worcester offers up to $5,000 in down payment and closing cost assistance through federal CDBG funding. There are two tracks: buyers with household income at or below 80% AMI purchasing in Worcester, and people currently employed in Worcester with income at or below 120% AMI who purchase in the city. Both require an approved homebuyer course and application at least 45 days before closing.
Do I have to live in Worcester to use the ONE+ program? You must currently reside in one of 29 designated Massachusetts communities, including Worcester, Fitchburg, and Leominster. However, you may purchase your home anywhere in Massachusetts. A renter living in Worcester can use ONE+ to buy in a surrounding town.
What assistance is available for veterans buying a home in Massachusetts? MassHousing's Operation Welcome Home provides a $2,500 closing cost credit for Massachusetts veterans, National Guard and Reserve members, active service members, and Gold Star families. It can be combined with down payment assistance and offers a second assistance loan of up to 3% of the purchase price, or $12,000, for 100% financing. VA loans offering zero down and no PMI should also be compared.
Can I get a loan to buy and renovate a fixer-upper in Massachusetts? Yes. The FHA 203(k) program finances purchase and renovation in a single mortgage with 3.5% down. The Limited 203(k) now allows up to $75,000 in total rehabilitation costs for case numbers assigned on or after November 4, 2024, up from the previous $35,000 limit. The Standard 203(k) covers major structural work.
Are there grants, not loans, for Massachusetts first-time home buyers? Yes. The Federal Home Loan Bank of Boston's Equity Builder Program provides grants up to $15,000 for buyers at or below 80% of area median income, and its Housing Our Workforce program serves moderate-income buyers. Many municipal CDBG-funded programs are also structured as conditional grants rather than repayable loans.
How do I find first-time buyer programs in my specific Massachusetts town? Call your town hall and ask for the community development or planning office, and ask specifically about first-time homebuyer assistance and affordable housing trust funds. Also ask your lender which local programs they have recently closed loans with, and contact regional nonprofits such as NewVue Communities in North Central Massachusetts.
Do all Massachusetts first-time buyer programs require a homebuyer class? Nearly all of them do, including MassHousing, ONE Mortgage, FHLB Boston grants, and most municipal programs. Many classes are free and offered online or on evenings and weekends. Buyers purchasing two- or three-family properties typically must also complete a landlord or multi-family counseling course.
What is the income limit for Massachusetts home buyer assistance? Limits vary by program and community. MassHousing's general screening threshold is around $209,250 depending on location. ONE Mortgage caps household income at 100% of area median income. FHLB Equity Builder and most municipal programs require 80% of AMI or less, though Worcester's employee track allows up to 120% of AMI.
Not Sure Which Ones You Qualify For?
There's a lot on this list, and the honest truth is that most buyers qualify for more than they realize and fewer people ask about the local and FHLB programs than should.
If you're buying anywhere in Central Mass, reach out and I'll help you figure out which of these actually apply to your situation, and connect you with lenders who close these loans regularly. No pressure and no obligation.
508-365-7036 📧 [email protected] 🌐 www.AnnieOakman.com
Serving Worcester County and Central Massachusetts first-time buyers, young families, and anyone eyeing a fixer-upper.
