MassHousing Down Payment Assistance in Massachusetts (2026)

Many Massachusetts renters can afford a monthly mortgage payment, yet saving cash for the down payment and closing costs keeps them on the sidelines.

MassHousing offers three second mortgages of $25,000 or $30,000, each governed by its own 2026 income limits and repayment terms.

Check Your Massachusetts Home Purchase Eligibility

Once you see what these loans add to your monthly payment, you can decide if MassHousing beats other low-down-payment options.

How MassHousing Down Payment Assistance Works

MassHousing down payment assistance (DPA) is a statewide second mortgage, not a cash grant, that gives eligible first-time homebuyers in Massachusetts a fixed $25,000 or $30,000 toward a primary residence. It has been offered in every city and town in the state since June 2, 2025, when paired with an eligible MassHousing first mortgage.

Depending on your income, the assistance is either a 0% deferred loan with no monthly payment or a 15-year amortizing loan (paid down each month with principal and interest) at 2% or 3%.

MassHousing does not take applications directly from homebuyers. You apply through one of more than 80 participating banks, credit unions, or mortgage companies, and that lender determines which option you qualify for.

Which Option Fits Your Income

Your household income and your first mortgage determine which of the three second mortgages you get.

Workforce Advantage ($30,000 at 0% Deferred)

Workforce Advantage is for first-time buyers whose total household income falls under MassHousing's limit for their specific community and household size. You get $30,000 at 0% interest with no monthly payments, and on the conventional Workforce Advantage 4.0 loan MassHousing pays the single-premium mortgage insurance directly.

Taking this $30,000 DPA is required whenever you use a Workforce Advantage 4.0 conventional or FHA loan.

2% Amortizing ($25,000 Up to 80% AMI)

First-time buyers above the Workforce Advantage cap (or using a standard HFA or First-Time Homebuyer FHA loan) who earn up to 80% of their county's Area Median Income (AMI) get the 2% loan. This tier uses a single countywide cap that does not change with household size.

3% Amortizing ($25,000 Above 80% to 135% AMI)

Buyers earning above 80% and up to 135% of their county's AMI get the same $25,000 15-year loan at a 3% fixed rate. Because the 135% AMI ceiling reaches $209,250 in Essex, Middlesex, Norfolk, Plymouth, and Suffolk counties (and $220,320 in Nantucket), this option stays open to many two-income households.

What Happened to the 0% $25,000 Option?

MassHousing offered a temporary Expanded 0% deferred $25,000 DPA in spring 2026 for buyers up to 135% AMI, then stopped taking locks after July 2, 2026 due to high demand.

The 2% and 3% amortizing $25,000 loans returned on July 6, 2026, while Workforce Advantage's $30,000 0% loan was never affected, and no return date has been announced.

Older online claims about "$50,000 forgivable" grants refer to the 2022 MassDREAMS program, not MassHousing DPA.

What It Adds to Your Monthly Payment

On a starter home, $25,000 or $30,000 often covers your entire minimum down payment with money to spare. MassHousing conventional loans allow a 3% down payment (97% loan-to-value, or LTV) on a one-unit home, while FHA loans in Massachusetts require 3.5% down (96.5% LTV).

Here is how the numbers look on a $400,000 single-family home or condo:

• Conventional 3% minimum down payment: $12,000.
• FHA 3.5% minimum down payment: $14,000.
• MassHousing DPA ($25,000 or $30,000): Covers the full $12,000 or $14,000 down payment and leaves $11,000 to $18,000 above the minimum.

A participating lender can help you apply any leftover DPA funds toward Massachusetts closing costs or a larger down payment within MassHousing's 105% combined loan-to-value (CLTV) limit, which measures all mortgages divided by the home's value.

The $25,000 amortizing loans add $160.88 a month at 2% or $172.62 a month at 3% for 180 months, while Workforce Advantage adds $0. That payment counts toward MassHousing's 45% debt-to-income cap, and you can test it in our Home Affordability Calculator.

The Catch: Repayment Rules

Because MassHousing DPA is a second mortgage, three repayment rules apply to every tier:

• Due on sale, refinance, or payoff: Any remaining balance on the $30,000 or $25,000 loan is due in full when you sell, refinance, or pay off the first mortgage.
• No subordination when you refinance: MassHousing will not subordinate its DPA second mortgage behind a new first mortgage, so you cannot leave the DPA loan in place during a refinance.
• Never forgiven: None of the three options is forgiven over time.

If interest rates fall a few years after you buy and you want to refinance, you will need enough home equity or cash to pay off the remaining DPA balance at closing.

Who Qualifies

To use MassHousing DPA, both you and the property have to pass MassHousing's baseline rules for the paired first mortgage.

Borrower Requirements

• First-time homebuyer: No ownership interest in a principal residence in the past three years for any borrower, no other real property at closing, and no non-occupying co-borrowers.
• Credit score: At least 640 across all DPA-paired loans (up to 700 on some loan, property, and LTV combinations, so confirm your scenario with a participating lender).
• Debt-to-income (DTI) ratio: Maximum 45% of gross monthly income going toward total monthly debts, including any $160.88 or $172.62 DPA payment.
• Occupancy and reserves: You must occupy the home as your primary residence, and a lender may require post-closing reserves such as two months of mortgage payments.
• Homebuyer education: Required before closing for all buyers, and Workforce Advantage buyers must use a MassHousing-approved counseling agency.

Property Rules

• Eligible homes: Single-family houses, condominiums, and 2-, 3-, or 4-family properties in Massachusetts.
• Borrower contribution: No minimum contribution from your own funds on 1-unit conventional loans, and a 3% minimum buyer contribution on 2- to 4-unit conventional loans.
• Multi-family rules: Buying 2 to 4 units requires landlord counseling from a MassHousing-approved agency, and 75% of projected rents count toward compliance income on conventional loans.
• Property condition: Since July 1, 2026, homes rated C5 or C6 must be repaired to at least C4 (using MassHousing's rehabilitation feature where eligible).

Check Your Massachusetts Home Purchase Eligibility

2026 Income Limits

MassHousing uses two different income tables depending on the DPA tier, with current limits effective for rate locks on or after June 15, 2026. Because limits change yearly, confirm your town's figure with a participating lender.

County AMI limits for the $25,000 2% and 3% loans do not change with household size. Workforce Advantage limits for the $30,000 0% loan vary by city or town and household size, and count the income of everyone who will live in the home.

County Income Limits for $25,000 Amortizing DPA (2% and 3%)

Sample Workforce Advantage Limits for $30,000 0% Deferred DPA

The full Workforce Advantage schedule runs up to 8-person households—for example, an 8-person household limit is $135,780 in the Boston and Cambridge area, $104,340 in Worcester, $104,160 in Springfield, and $144,240 in Nantucket.

Pairing It With a MassHousing First Mortgage

You cannot add MassHousing DPA to a standard bank loan; it must be paired with a MassHousing first mortgage. Every MassHousing first mortgage is a fixed-rate conventional or FHA loan with no loan-level price adjustments and no purchase price caps since June 2, 2025, though standard 2026 conforming and FHA loan limits still apply.

See our MassHousing mortgage guide for details on each loan, mortgage insurance, MI Plus job-loss protection, and the $2,500 military closing cost credit.

How It Compares With Other Options

Before locking a MassHousing loan, compare it with three other common paths for Massachusetts first-time buyers:

• ONE Mortgage Program in Massachusetts: A 30-year fixed loan with 3% down (5% on a three-family), no private mortgage insurance, and an early-year interest subsidy for eligible lower-income buyers.
• Standard conventional (3% down) or FHA loans in Massachusetts: Often the better fit if your income is above 135% AMI, your credit score is under 640, or you need a non-occupant co-borrower.
• Local grants and Equity Builder: MassHousing DPA can be layered with the Federal Home Loan Bank of Boston's Equity Builder Program and many local programs in our Massachusetts first-time homebuyer grants guide.

How to Apply

1. Check your eligibility and budget: Review your 640+ credit score, 45% max DTI, and 2026 income tier; our team at Make Massachusetts Your Home helps buyers check eligibility with no hard credit pull and get pre-approved in 1 to 3 business days.
2. Apply through a participating lender: Submit your application to one of MassHousing's more than 80 approved lenders, which verifies your income compliance and locks both loans.
3. Finish homebuyer education early: Complete an approved homebuyer class (and landlord counseling for 2 to 4 units) so your certificate is ready before closing.
4. Close and pay MassHousing: After closing, MassHousing purchases the loan and you make your monthly payments directly to MassHousing.

Is MassHousing DPA Worth It?

If your household income falls within the Workforce Advantage limits for your community, the $30,000 0% deferred loan with no monthly payment is the best option MassHousing offers, especially on the conventional version where MassHousing pays the mortgage insurance.

For buyers up to 135% AMI using the $25,000 2% or 3% loans, the assistance is worth it when cash to close is what stops you from buying. Because it adds $160.88 or $172.62 a month and must be paid off if you sell or refinance, compare the total cost against a standard low-down-payment loan before making an offer.

Check Your Massachusetts Home Purchase Eligibility