Springfield, MA First-Time Homebuyer Programs (2026)

Saving enough cash for a down payment and closing costs is often the hardest part of buying your first home in Springfield.

Springfield's down payment loan, Buy Springfield Now, and statewide MassHousing and ONE Mortgage options are the main ways to bridge that gap in Hampden County.

Check Your Massachusetts Home Purchase Eligibility

Pick the right program for your income, follow the rules for moving early, and apply in the correct order.

What Springfield Offers Right Now

The City of Springfield runs its own down payment and closing cost loan, but its dollar amount and funding status must be confirmed with the Office of Housing before you count on it.

Because Springfield is one of 29 ONE+ communities in Massachusetts, current city residents also qualify for the Massachusetts Housing Partnership's (MHP) ONE+ program, which is often the bigger benefit. Statewide MassHousing Down Payment Assistance (DPA) works in Springfield too.

Most programs cap eligibility by Area Median Income (AMI, the midpoint household income for the region), and you should confirm current figures and funding before signing a contract.

The City's Down Payment and Closing Cost Loan

The City of Springfield Office of Housing helps income-qualified first-time buyers cover their down payment and Massachusetts closing costs on a primary residence within city limits. The help is a 0% interest, deferred-payment loan disbursed at closing, not a cash grant.

How Much: Confirm Before You Count on It

The city's published materials list two different loan amounts:

• City web page (as of October 2026): Describes assistance in a range of about $10,000 to $20,000.
• Program application (updated March 17, 2026): Lists $7,500 as a 0% interest forgivable loan.

The city web page also noted that the Office of Housing would likely not have access to funds before August 7, 2026, and could not assist buyers closing before that date. Municipal housing funds are allocated each year and can run out once committed.

Before you write this money into an offer, call the Office of Housing at 413-787-6500 to confirm both the active dollar amount and whether funds are open. The office is at 1600 East Columbus Avenue, Springfield, MA 01103, and is open Monday through Friday from 8:00 a.m. to 4:30 p.m.

How Forgiveness Works

Under the March 17, 2026 application, the city's 0% deferred loan is forgiven over 10 years:

• During years 1 through 5, you make no monthly payments and pay 0% interest, with no forgiveness during the first five full years.
• Starting after the sixth full year of occupancy, one-fifth (20%) of the loan is forgiven each year.
• After year 10, the loan is 100% forgiven if you have lived in the property continuously as your principal residence.
• Selling, refinancing, transferring title, or moving out within those 10 years triggers repayment of a pro-rated portion of the balance.

On the $7,500 application amount, that works out to $1,500 forgiven each year in the final five-year stretch. If you think you may move or refinance within 10 years, plan on paying back part of the city loan at closing.

Who Qualifies

Under the March 2026 application, both you and the property must meet the city's rules:

• First-time buyer: You must be an income-qualified first-time homebuyer purchasing a primary residence inside the City of Springfield.
• Your own funds: You must contribute at least 1% of the purchase price from your own money.
• Property type: The city web page allows 1 to 4 units, while the application form lists condominiums, single-family, two-family, and three-family homes.
• Homebuyer and landlord education: You need a certificate from a HUD-certified counselor at a HUD-approved agency, plus a landlord training course if the home has two or more units.
• Loan-to-value and appraisal: Maximum loan-to-value (LTV, the loan amount compared to the home's value) follows your first mortgage, may not exceed 103%, and the appraisal must support the purchase price.
• City standing: You must be current on all City of Springfield taxes, fees, fines, and municipal liens.

Income Limits

The March 2026 application lists household income limits effective June 1, 2025, which have likely been updated; confirm the active 2026 table with the Office of Housing when you call.

Check Your Massachusetts Home Purchase Eligibility

How to Apply, in the City's Order

The City of Springfield takes your assistance application only after you are approved for a mortgage and under contract on a house. On its "Buying a Home" page, the city sets out five steps in order:

1. Take a homebuyer education class. Complete an approved pre-purchase course early so your certificate is ready before you make an offer.
2. Check Buy Springfield Now. Look over the local lenders, Realtors, real estate attorneys, home inspectors, and retailers offering buyer discounts, and ask whether your employer offers down payment help through the program.
3. Get pre-approved for a fixed-rate mortgage. Get a full pre-approval for a fixed-rate first mortgage so you know your price ceiling, and test payments ahead of time with our Home Affordability Calculator.
4. Find a house and sign a Purchase and Sale Agreement. Shop for a 1-to-4 unit home inside Springfield city limits and get an accepted offer.
5. Apply to the Office of Housing. Once your loan is approved and you are under contract, submit your online or paper application for down payment and closing cost assistance to the city.

Where to Take the Class

The City of Springfield lists five HUD-approved housing counseling agencies that offer the required homebuyer course for local buyers:

• Cambridge Credit Counseling (also offers a Landlord Workshop)
• Holyoke Housing Authority
• Springfield Partners for Community Action
• Valley Community Development
• Way Finders (also offers a Landlord Workshop)

The Citizens' Housing and Planning Association (CHAPA) also certifies first-time homebuyer classes across Massachusetts, with schedules posted through CHAPA and MyMassHome.

Other City Programs: Buy Springfield Now, Lotteries and Lead Paint Help

Beyond the standard down payment loan, three other local programs can cut your buying or repair costs inside city limits.

Buy Springfield Now

Buy Springfield Now is a public, nonprofit, and private partnership built to promote homeownership in the city. Participating local lenders, Realtors, attorneys, home inspectors, and retailers offer discounts to Springfield buyers.

Participating Springfield employers also provide down payment and closing cost benefits to their own employees, so ask your human resources department if your employer is a partner.

Affordable Home Lotteries

The Springfield Office of Housing periodically sells newly built or renovated homes at below-market prices through public lotteries. A late-2026 lottery in the Liberty Heights neighborhood shows how these sales work:

• The home: A renovated two-family house at 24–26 Los Angeles Street, developed by Way Finders and priced at $310,000.
• Who can apply: Households up to 100% AMI ($92,000 for one person to $131,500 for four, up to $173,600 for eight), with a $100,000 asset limit.
• The catch: The second unit must be rented to a household earning at or below 80% AMI.
• Deadline: Applications are due by 4:30 p.m. on Friday, December 4, 2026, for a December 14, 2026 drawing.
• Pre-approval: You must attach a full mortgage pre-approval, as a simple pre-qualification letter is not accepted.

The city has also asked developers to build three-bedroom single-family homes on five vacant lots for first-time buyers earning at or below 80% AMI, so check the Office of Housing homepage for new lottery notices.

Lead Paint Hazard Reduction Program

After you buy, the city's HUD-funded Lead Paint Hazard Reduction Program helps owner-occupants under 80% AMI address lead hazards in 1-to-4 unit homes built before 1978 where a child under age 6 or a pregnant resident lives.

Call the Office of Housing at 413-787-6500 for details, and review our guide to the Massachusetts Lead Paint Law before buying a pre-1978 home or becoming a landlord.

Statewide Programs You Can Use in Springfield

Statewide Massachusetts first-time homebuyer grants and programs often provide more money and allow higher incomes in Hampden County than the city's standalone loan, and MassHousing notes that its DPA can be combined with many local first-time buyer programs.

You apply for ONE Mortgage, ONE+, and MassHousing loans through lenders approved by those agencies. Next Wave Mortgage is not a participating MassHousing, ONE Mortgage, or city program lender, but our team can check your eligibility, compare wholesale options such as FHA loans in Massachusetts and conventional mortgages, and get you pre-approved.

ONE+ for Current Springfield Residents

Springfield is one of 29 Massachusetts communities—along with nearby Chicopee, Holyoke, and Westfield—whose current residents qualify for MHP's enhanced ONE+ program. ONE+ adds a permanent interest-rate discount and down payment and closing cost assistance to the no-PMI ONE Mortgage, using the same income, asset, and credit rules.

ONE+ offers up to $50,000 in down payment and closing cost assistance according to program partner the Boston Foundation. MHP's public page prints no fixed dollar figure because a participating ONE+ lender calculates your exact amount, so confirm your number directly with the lender.

If you have heard neighbors mention the 2022 MassDREAMS grant—which offered up to $35,000 or $50,000 in the same 29 communities—MassHousing suspended MassDREAMS on November 30, 2022 when its funding ran out, and MHP describes ONE+ as building on it.

MHP ONE Mortgage

Administered by MHP (1-800-752-7131), the ONE Mortgage Program in Massachusetts is a 30-year fixed-rate first mortgage for low- and moderate-income first-time buyers:

• Down payment: Put 3% down on a condo, single-family, or two-family home (at least 1.5% from your own funds), or 5% down on a three-family (at least 3% your own).
• No PMI: You pay no monthly private mortgage insurance (PMI); a publicly funded loan loss reserve backs the lender instead.
• Rate and points: Participating lenders price the 30-year fixed rate below a market benchmark and cannot charge discount points.
• Interest subsidy at or under 80% AMI: On 1- to 2-unit homes and condos, a subsidy keeps payments level in years 1 through 4 and phases out in years 5 through 8. Three-families and buyers putting more than 20% down are excluded.
• Credit score: You need at least a 640 score for a single-family home or condo and 660 for a two- or three-family property, though nontraditional credit is allowed.
• First-time and education rules: No home owned in the past three years (with limited exceptions like displaced homemakers). Requires a pre-purchase class, a landlord course for 2 to 3 units, and a post-purchase class within a year.

Household assets cannot exceed $100,000 under MHP's November 2024 guidelines, though an older line on MHP's calculator page still says $75,000, so confirm with a participating lender. Retirement accounts, approved college savings plans, and qualifying municipal or employer down payment help do not count toward the cap.

Here are MHP's 2026 household income limits (updated May 2026) for Springfield and Hampden County, which you should confirm with a participating lender when you apply:

MassHousing Down Payment Assistance

MassHousing Down Payment Assistance is available statewide, including Springfield, when paired with a MassHousing first mortgage through one of its more than 80 approved lenders. It covers single-family homes, condos, and 2- to 4-family primary residences for first-time buyers (no ownership in the past three years) with at least a 640 credit score and completed homebuyer education:

• Workforce Advantage DPA (up to $30,000): A 0% interest, deferred second mortgage with no monthly payments, repaid only when you sell, refinance, or pay off the first mortgage.
• Standard Amortizing DPA (up to $25,000): A 15-year fixed-rate second mortgage with monthly payments, with one rate tier up to 80% AMI and a slightly higher tier up to 135% AMI.

Workforce Advantage DPA requires a Workforce Advantage first mortgage and landlord counseling for 2 to 4 units. For loans locked on or after June 15, 2026, its Hampden County income limits vary by household size:

For the $25,000 amortizing loan, the Hampden County income cap is $77,360 for the 80% AMI tier and $130,545 for the 135% AMI tier regardless of household size.

A temporary 0% $25,000 offer from spring 2026 ended in early July 2026 due to high demand.

Check Your Massachusetts Home Purchase Eligibility

Which Path Fits You

Four quick questions narrow down which program to run first:

• Live in Springfield, Chicopee, Holyoke, or Westfield and earn at or under 100% AMI: Ask a participating lender to run ONE+ first, since it pairs no PMI and a permanent rate discount with up to $50,000 in help.
• Income above 100% AMI: Once your income passes the ONE Mortgage and city caps, MassHousing's 135% AMI tier (up to $130,545 in Hampden County) still offers the $25,000 amortizing second mortgage.
• May move or refinance within 5 to 10 years: The city loan is not forgiven at all in the first five years, and a MassHousing second mortgage is due in full when you sell or refinance.
• Credit under 640, or city funding timing does not fit your contract: Compare standard FHA loans in Massachusetts and conventional options so you do not lose a house waiting on a program window.

Example: Cash to Buy a $310,000 Two-Family

Take the $310,000 price on the city's Los Angeles Street two-family lottery as a benchmark:

• On a ONE Mortgage, the 3% minimum down payment is $9,300.
• At least $4,650 of that (1.5% of the price) must come from your own savings, and a two-family requires a 660 credit score and a landlord course.
• The City of Springfield loan requires at least $3,100 (1% of the price) from your own funds.

Next Steps for Springfield Buyers

Start by scheduling your pre-purchase homebuyer class, calling the Springfield Office of Housing at 413-787-6500 to confirm current funding and loan caps, and checking what you qualify for before you tour houses.

An eligibility check or pre-approval with our team takes no hard credit pull, and pre-approval typically takes 1 to 3 business days once your documents are in. We can review your income and credit, compare wholesale mortgage options side by side, or set up a free 15-minute call with a loan officer to map out your budget.

Check Your Massachusetts Home Purchase Eligibility