Saving for a down payment is the biggest hurdle for most first-time buyers in Greater Boston. The good news: Massachusetts has some of the strongest homebuyer programs in the country, and several local cities add their own help on top. This guide explains the main options for 2026, who qualifies, and how to put them together.
Who counts as a first-time homebuyer?
You may qualify even if you owned a home years ago. ONE Mortgage, the City of Boston and the City of Everett, for example, treat you as a first-time buyer if you have not owned a home in the past three years. Each program sets its own rules, so always confirm with the program or your lender.
MassHousing mortgages and down payment assistance
MassHousing is the state’s affordable housing bank. It offers fixed-rate mortgages through participating local lenders, and first-time buyers who use a MassHousing mortgage can add down payment assistance (DPA). DPA is available in every city and town in Massachusetts and can be used for single-family homes, condos, and 2- to 4-family homes you will live in.
| DPA option | Maximum | Rate | Repayment |
|---|---|---|---|
| Option 1 | $30,000 | 0% | Deferred: repaid when you sell, refinance or pay off the first mortgage |
| Option 2 | $25,000 | 2% | Monthly payments over 15 years |
| Option 3 | $25,000 | 3% | Monthly payments over 15 years |
Your lender decides which option you qualify for. Homebuyer education is required for both the mortgage and the DPA.
Income limits: MassHousing’s income limit sheet effective June 15, 2026 lists $209,250 as the upper household income limit for its HFA mortgage and DPA programs in Suffolk, Middlesex, Essex, Norfolk and Plymouth counties, with a lower tier at $124,000. Limits change during the year, so check MassHousing’s eligibility tool or ask your lender for the current figure.
ONE Mortgage from the Massachusetts Housing Partnership
ONE Mortgage is a 30-year fixed-rate loan designed for low- and moderate-income first-time buyers. Its biggest advantage is that it has no private mortgage insurance (PMI), which can lower your monthly payment a lot.
- Down payment: 3% for a condo, single-family or two-family home, and 5% for a three-family home. Gifts and down payment assistance programs may help cover it; ask a ONE Mortgage lender how much must come from your own funds.
- Interest subsidy: Qualified buyers get extra help that lowers the payment, phasing down over the first seven years.
- Assets: Total household assets must be under $75,000 (most retirement and college savings accounts are not counted).
- Credit: The state lists a minimum score of 640 for a single-family or condo and 660 for a 2- or 3-family, with options for buyers who have no credit history.
- Education: A first-time homebuyer class is required. Three-family buyers also need one-on-one counseling.
- Income: Limits vary by community and household size. Use the ONE Mortgage calculator at mhp.net or call 1-800-752-7131.
Boston residents buying in Boston may qualify for ONE+Boston, which combines ONE Mortgage with City of Boston funds for a deeper discount. It requires household assets under $100,000.
FHA loans
FHA loans are insured by the federal government and allow a down payment as low as 3.5% with a credit score of 580 or higher (10% down for scores from 500 to 579). Many lenders set higher minimums. FHA loans carry mortgage insurance for most borrowers, so compare the total monthly cost with the other options. Our mortgage types guide explains the details.
Conventional 3% down options
- Fannie Mae HomeReady: As little as 3% down for buyers earning up to 80% of the area median income (AMI).
- Freddie Mac Home Possible: As little as 3% down, also for incomes up to 80% of AMI. You do not have to be a first-time buyer.
- Freddie Mac HomeOne: 3% down for first-time buyers, with no income limit.
With Freddie Mac’s programs, if every borrower is a first-time buyer, at least one must complete homebuyer education. These loans usually have PMI until you reach enough equity.
Local city programs
Several cities near Chelsea offer their own help, which can sometimes be combined with a state program. Funds are limited and often first-come, first-served.
| City | Help available | Key rules |
|---|---|---|
| Boston | 3% of the purchase price, up to $50,000 (income under 100% AMI), or 2%, up to $35,000 (101% to 135% AMI); 2% for deed-restricted homes | 1- to 3-family or condo in Boston; CHAPA-approved class; assets under $100,000. A grant for Boston residents; a 0% deferred loan for non-residents (secured by a mortgage for applications after September 14, 2026). |
| Chelsea | Up to $10,000 | 0% deferred loan, forgiven if you own and live in the home for 5 years; condos and single-family homes; income-eligible buyers. |
| Everett | Up to $20,000 | Forgivable over 5 years; 1- to 4-family or condo in Everett; household income between 60% and 150% of AMI under the city’s FY2025 guidelines; homebuyer class required. |
| Revere | $10,000 | At least 2 years of Revere residency; income at or below 100% AMI; enrolled in a homebuyer course (per the city’s June 2025 update). |
| Lynn and Quincy | Check with the city | We could not confirm a current city down payment program. Contact the city’s housing or community development office for the latest options. |
The homebuyer education class
Almost every program above requires a first-time homebuyer class. In Massachusetts, look for classes with the CHAPA (Citizens’ Housing and Planning Association) Seal of Approval, which many affordable mortgages and assistance programs require. Classes cover budgeting, credit, the buying process and local resources. Many are offered online, and it is worth asking whether a class is available in Spanish. Certificates are commonly valid for about two years, but check what your program requires.
How to put the pieces together
- Take a homebuyer class early, even before you start looking.
- Talk with a lender that offers MassHousing and ONE Mortgage loans and ask them to compare the total monthly cost of each option.
- Check your city’s program rules, deadlines and funding status.
- Get pre-approved with the program you choose. See our credit and pre-approval guide.
- Use our affordability calculator to test your payment, then read our step-by-step buying guide.
How Luis can help
Luis and our team work with many first-time buyers in Chelsea and the surrounding cities, in English or Spanish, and we can connect you with lenders who know these programs well. Visit our first-time buyer page or book a free 15-minute call to talk about your plans.
How much can I afford?
A price range based on income, debts and down payment.
- Max monthly housing payment
- —
- Loan amount
- —
- Down payment
- —
Estimate for education only. Not a loan offer, appraisal or tax advice.
Frequently asked questions
Can I combine MassHousing or ONE Mortgage with a city program?
Often yes, but each program has its own rules about stacking. Ask your lender and the city housing office early, before you sign a Purchase and Sale Agreement.
Is down payment assistance free money?
Usually it is a loan. Some city programs are forgiven after you live in the home for a set number of years, and Boston gives grants to Boston residents, but most assistance must be repaid when you sell or refinance.
Can I use these programs to buy a multi-family home?
Some programs allow it. MassHousing DPA can be used on 2- to 4-family homes, and ONE Mortgage allows up to three-family homes, as long as you live in one unit.
Where do I take the homebuyer class?
Look for a class with the CHAPA Seal of Approval. Many local nonprofits offer them, often online; ask whether a Spanish-language class is available.
Sources
- MassHousing: Down Payment Assistance
- MassHousing Form L-101: HFA Income Limits (effective June 15, 2026)
- MHP: ONE Mortgage
- Mass.gov: ONE Mortgage Program
- City of Boston: First-Time Homebuyer Program
- City of Chelsea: First Time Homebuyer Down Payment Assistance
- City of Everett: First-Time Homebuyer Program (2025 revised)
- City of Revere: Downpayment Assistance eligibility expanded
Information checked November 2026. Laws, rates and program limits change; confirm details with your attorney, lender or tax advisor.
