Many Massachusetts first-time buyers can afford a monthly mortgage payment, only to get priced out when private mortgage insurance is added to a small down payment.
The Massachusetts Housing Partnership ONE Mortgage counters this by combining a 3% down payment, no PMI, and an early-year interest subsidy.
Check Your Massachusetts Home Purchase Eligibility
See if you qualify, calculate the savings you need, and decide whether ONE Mortgage or MassHousing fits you better.
What Is the ONE Mortgage?
The ONE Mortgage is a statewide 30-year fixed-rate loan for low- and moderate-income first-time homebuyers, run by the Massachusetts Housing Partnership (MHP). Participating Massachusetts banks and credit unions originate the loans and keep them in their own portfolios rather than selling them off.
The program started in 1990 as the SoftSecond Loan Program and was renamed ONE Mortgage in 2013. Alongside other Massachusetts first-time buyer programs, it is built around five core features:
- Low down payment: Put down 3% on a condominium, single-family, or two-family home, or 5% on a three-family home.
- Rate discount: Get a 0.3% (30 basis point) discount on a 30-year fixed interest rate from the participating bank or credit union.
- No PMI: Pay $0 in monthly private mortgage insurance, even with 3% down.
- Early-year subsidy: Qualified lower-income buyers receive a state-funded interest rate buy-down during the first seven years of the loan.
- No appreciation cap: Keep your home's equity growth, with a portion recaptured at sale or refinance only if you used the interest subsidy.
How Skipping PMI Works
On standard conventional loans in Massachusetts or FHA loans, putting less than 20% down means paying monthly mortgage insurance until you build enough equity or refinance. That extra monthly charge reduces how much house your income can buy.
With ONE Mortgage, participating banks and credit unions hold the loans and the credit risk in their own portfolios, backed by a cash-funded loan loss reserve. Because of that setup, borrowers pay no private mortgage insurance, so every dollar of your payment goes toward principal, interest, property taxes, homeowners insurance, and any condo fee.
How the Interest Subsidy Works
Qualified lower-income borrowers, especially households earning under 80% of Area Median Income (AMI, the midpoint household income for a region), receive a state-funded interest rate buy-down that lowers monthly payments in the early years. MHP increased public funding per loan for under-80%-AMI buyers in 2022.
| Loan years | How the subsidy applies |
|---|---|
| Years 1–4 | Full monthly subsidy applies, keeping your payment at its lowest level |
| Year 5 | Subsidy begins stepping down |
| Year 6 | Subsidy steps down further |
| Year 7 | Final year of partial subsidy |
| Years 8–30 | Subsidy ends; you pay the regular fixed principal and interest payment |
MHP does not publish a flat statewide subsidy amount, so a participating lender calculates whether a subsidy applies to your loan and how much it saves each month. Plan ahead for your payment rising in years five through eight as the subsidy steps down.
What You Give Back When You Sell
There is no cap on your home's appreciation under ONE Mortgage. If you received the state-funded interest subsidy, a portion of any net gain when you sell or refinance is recaptured solely to repay the subsidy you used, so factor that repayment into any plan to sell or refinance.
Check Your Massachusetts Home Purchase Eligibility
Who Qualifies
To use a ONE Mortgage, you must meet MHP's rules on buyer status, income, countable assets, credit, occupancy, and pre-purchase education.
| Requirement | Rule |
|---|---|
| First-time buyer | Must not have owned a home at any point in the past 3 years; owning longer ago is fine |
| Household income | Must be under MHP limits, which vary by community and household size |
| Household assets | Less than $100,000 in countable household assets |
| Credit score | 640 for a condo or single-family; 660 for a two- or three-family; options exist with no credit history |
| Occupancy | Must be your primary residence; moving out requires refinancing out of ONE Mortgage |
| Homebuyer education | Approved class required before closing; landlord education or counseling required for 2–3 family |
Income Limits
Your total household income must fall under MHP's published cap for the city or town where you are buying and your household size. Limits are updated periodically, so check MHP's current chart or ask a participating lender for the exact figure in your target towns.
MHP's affordability calculator assumes total monthly housing costs take up no more than one third of gross monthly income, though underwriting exceptions may apply. You can test your monthly budget in our Home Affordability Calculator.
The $100,000 Asset Limit
Your household must have less than $100,000 in countable assets when you apply, including checking and savings accounts, stocks, and bonds. MHP does not count most retirement accounts such as 401(k) or IRA balances, college savings accounts, or funds from down payment assistance programs.
MHP's online calculator page still shows a $75,000 figure, so confirm the current limit with your participating lender. This cap is a real catch for buyers with larger non-retirement savings.
No Credit History
If you do not have a traditional credit score because you have never used credit cards or installment loans, MHP has alternative ways to qualify buyers with no credit history.
How Much Cash You Need
Your minimum down payment and how much must come from your own savings depend on the property type. The rest of the down payment can come from a family gift or an eligible down payment assistance program.
| Property | Minimum down payment | From your own savings |
|---|---|---|
| Condo, single-family, or two-family | 3% | 1.5% of the purchase price |
| Three-family | 5% | 3% of the purchase price |
In ONE+'s first year, the average purchase price was $433,725. On a home at that price, 3% down is about $13,012, and at least half of it, about $6,506, must come from your own savings while the rest can come from a gift or assistance.
With no PMI, none of your monthly payment goes to mortgage insurance. You will still need cash or assistance for closing costs on top of the down payment.
Buying a Two- or Three-Family Home
ONE Mortgage lets you buy an owner-occupied two-family or three-family home and use rent from the other units to help cover the mortgage. Four-family homes are not eligible, so see our guide to multifamily mortgages in Massachusetts if you are shopping for a four-unit building.
You will need the higher 660 credit score, and on a three-family, the larger down payment shown above. Before closing, you must also complete an approved pre-purchase landlord course or one-on-one counseling session, and three-family buyers must do one-on-one counseling.
ONE+ and ONE+Boston
Launched in November 2024, ONE+ adds a permanent interest rate discount and up to $50,000 in down payment and closing cost assistance for eligible first-time buyers who currently live in one of 29 Massachusetts communities.
It uses the same core down payment, $100,000 asset cap, and credit score rules as the standard ONE Mortgage, and you must apply through a participating ONE+ lender.
| Group | Eligible ONE+ resident communities |
|---|---|
| A – F | Attleboro, Barnstable, Boston, Brockton, Chelsea, Chicopee, Everett, Fall River, Fitchburg, Framingham |
| H – M | Haverhill, Holyoke, Lawrence, Leominster, Lowell, Lynn, Malden, Methuen |
| N – W | New Bedford, Peabody, Pittsfield, Quincy, Randolph, Revere, Salem, Springfield, Taunton, Westfield, Worcester |
In its first year, ONE+ helped 255 homebuyers with more than $8 million in total assistance, and funding can be limited, so confirm current availability with a participating lender.
ONE+Boston
ONE+Boston combines the ONE Mortgage with City of Boston funding to offer a lowered interest rate plus closing cost and down payment assistance for eligible first-time buyers who live in or are buying in Boston. See our guide to Boston first-time buyer programs for how it fits with other city grants.
ONE Mortgage or MassHousing?
First-time buyers often weigh ONE Mortgage against a MassHousing mortgage paired with MassHousing down payment assistance.
| Feature | ONE Mortgage | MassHousing |
|---|---|---|
| Loan type | 30-year fixed held by a participating MA bank or credit union | Fixed-rate conventional or FHA loan, bought by MassHousing |
| Mortgage insurance | None | MassHousing MI on conventional (with MI Plus); FHA premiums on FHA |
| Minimum down | 3% (condo, 1–2 family); 5% (3-family) | 3% conventional 1-unit, 3.5% FHA, 5% conventional 2–4 unit |
| Homes | Condo, 1–3 family | Condo, 1–4 family |
| First-time buyer | Required (no home owned in past 3 years) | Depends on loan and DPA option |
| Asset limit | Less than $100,000 countable | None listed |
| Credit | 640 (1-unit/condo); 660 (2–3 family); no-credit options | 640 minimum, 45% max DTI |
| Extra help | 0.3% rate discount, 7-year subsidy, ONE+ up to $50,000 | Up to $30,000 in down payment assistance |
When ONE Mortgage Often Wins
- Your countable household assets are under $100,000 and your income is within MHP's limit for your town.
- You want no monthly mortgage insurance while putting 3% to 5% down.
- You qualify for the seven-year interest subsidy or currently live in one of the 29 ONE+ communities.
When MassHousing or a Standard Loan May Be Better
- Your countable savings and investments are $100,000 or more.
- You are buying a four-family property.
- Your income is above MHP's cap for your town, or you owned a home within the last three years.
Check Your Massachusetts Home Purchase Eligibility
How to Apply
ONE Mortgage is offered only through participating lenders listed on MHP's "Find a Lender" directory, which you can search by region and language spoken. MHP also runs a homebuyer help line at 1-800-752-7131 and ONEmortgage@mhp.net.
Next Wave Mortgage (which operates Make Massachusetts Your Home) is a mortgage broker that compares wholesale lenders and is not a participating ONE Mortgage lender.
You apply for ONE Mortgage directly through an MHP participating lender, while our team helps you check your eligibility with no hard credit pull, compare wholesale conventional, FHA, and VA numbers against state programs, and get pre-approved.
- Check your credit, own savings, and assets: Confirm your credit score, own-savings share, and countable assets fall within the ONE Mortgage limits above.
- Compare loan types side by side: Have our team run a quick check with no hard credit pull and compare wholesale loan options with what a participating ONE Mortgage or ONE+ lender offers in your community.
- Enroll in an approved homebuyer class early: Finish your required pre-purchase class, plus the landlord course or one-on-one counseling for a two- or three-family. MHP also offers post-purchase support after you move in.
- Get pre-qualified with a participating lender: A ONE Mortgage loan officer will verify your town's current income limit, calculate any seven-year subsidy or ONE+ assistance, and issue your pre-qualification letter.
Checking your numbers and comparing options takes a few minutes and requires no hard credit pull to start.
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