First-time buyers in Worcester often struggle to save for a down payment and closing costs, while several programs people still talk about have already closed.
Worcester's $5,000 down payment grant alongside statewide ONE Mortgage, ONE+, and MassHousing options remain open today, even if you are buying a three-decker.
Check Your Massachusetts Home Purchase Eligibility
Decide which program to try first, follow the city rules for multi-family homes, and time your application before closing.
What Worcester Offers Right Now
The city's own program is a $5,000 CDBG down payment grant, while the larger dollar amounts come from statewide programs, especially MHP's ONE+ for current Worcester residents. Several other programs buyers still hear about are closed.
| Program | Status (Oct. 2026) | What you get |
|---|---|---|
| City CDBG Down Payment Assistance | Open; confirm current terms with the city | Up to $5,000 conditional grant |
| MHP ONE+ | Available to current Worcester residents | Rate discount plus up to $50,000 (confirm with lender) |
| MHP ONE Mortgage | Available | 3% down, no PMI |
| MassHousing Workforce Advantage | Available | Up to $30,000 at 0%, deferred |
| MassHousing amortizing DPA | Available | Up to $25,000, 15-year loan |
| City repair and lead programs | After you buy; confirm funding | Up to $25,000 to $75,000 per unit |
| City ARPA Downpayment Assistance | Closed | Was up to $25,000 |
| MassDREAMS | Closed since November 30, 2022 | Was up to $35,000 or $50,000 |
| MassHousing 0% $25,000 offer | Ended after July 2, 2026 | — |
Most of these programs cap your household income as a percentage of Area Median Income (AMI), which HUD sets each year by household size for the Worcester metro area.
The City's $5,000 Down Payment Grant
Run by the city's Housing Development Division with federal HUD Community Development Block Grant funds, the Worcester CDBG Down Payment Assistance Program gives income-qualified first-time buyers up to $5,000 toward a down payment, Massachusetts closing costs, or an interest-rate buydown in Worcester.
The detailed Program Guidelines & Application document posted on the city's website is dated November 25, 2019, while the city's Housing Programs Overview presentation reflects FY2026 income limits. Confirm all current terms with the Housing Development Division (City Hall, 455 Main Street, Worcester, MA 01608; 508-799-1400) before making an offer.
How the Grant Works
- Conditional grant: The award is secured by a "silent second" mortgage and an affordable housing restriction recorded on the property, with no monthly payments.
- Gap only: It covers only the gap needed to buy, up to 50% of the lender-required down payment, eligible closing costs, or a rate buydown. For example, the grant can cover 1.5% of the purchase price while you contribute 1.5%.
- Three-year residency: You must live in the home as your primary residence for three years from acquisition, after which the grant obligation ends.
- Repayment: The grant has to be repaid if you sell, transfer, or refinance within the first three years, or if you stop living there as your primary residence.
- 45-day window: You must apply at least 45 days before closing, so your lender and agent need to build that review time into your purchase and sale agreement.
Who and What Qualifies
- Buyer: You must be a first-time homebuyer who is already pre-approved for a mortgage.
- Income: Household income must be at or below 80% AMI for the Worcester metro area (see the table below).
- Assets: Under the 2019 guidelines, households with liquid assets above $75,000 do not qualify.
- Price cap: The 2019 guidelines cap the price at 95% of the area median purchase price for single-family homes; confirm the current dollar cap with the city.
- Property: New or resale single-family homes, two-, three-, or four-family homes, townhomes, or condominiums inside the City of Worcester.
- Vacancy rule: Under the 2019 guidelines, the home must be vacant or seller-occupied for three months before your offer, and tenant-occupied homes qualify only if you are the tenant. Confirm how the city applies this now.
- Condition: The home must meet HUD habitability standards; properties needing more than $10,000 in code repairs are out unless the seller fixes them before closing.
- Lead: Homes built before 1978 must pass a visual lead-based paint inspection; see our guide to the Massachusetts lead paint law.
- Class: You must finish a HUD-certified or Massachusetts Homeownership Collaborative-accredited first-time homebuyer course before closing.
FY2026 Income Limits
To qualify for the city's CDBG grant, your household income must be at or below the FY2026 80% AMI limit for your household size:
| Household size | 80% AMI limit |
|---|---|
| 1 person | $73,750 |
| 2 people | $84,300 |
| 3 people | $94,850 |
| 4 people | $105,350 |
| 5 people | $113,800 |
| 6 people | $122,250 |
| 7 people | $130,650 |
| 8 people | $139,100 |
HUD updates income limits every year, so confirm your household's eligibility with the Housing Development Division when you apply.
Check Your Massachusetts Home Purchase Eligibility
Statewide Programs That Work in Worcester
Statewide programs from the Massachusetts Housing Partnership (MHP) and MassHousing offer much larger dollar amounts and higher income caps than the city grant, and MassHousing says its Down Payment Assistance can be combined with many local first-time buyer programs.
You apply for these through participating lenders, and you can see how they compare across the state in our guide to Massachusetts first-time homebuyer grants and programs.
ONE+ for Current Worcester Residents
Worcester is one of the 29 Massachusetts communities whose current residents qualify for MHP's ONE+ program, which MHP describes as building on ONE+Boston and MassDREAMS. ONE+ adds a permanent interest-rate discount plus down payment and closing cost help on top of the standard ONE Mortgage.
MHP's webpage does not list a fixed dollar amount, while program partner the Boston Foundation announced ONE+ as offering up to $50,000 in down payment and closing cost assistance. Confirm current ONE+ amounts and income tiers directly with a participating ONE+ lender.
MHP ONE Mortgage
The ONE Mortgage Program in Massachusetts is a 30-year fixed-rate conventional first mortgage for low- and moderate-income first-time buyers. It charges no private mortgage insurance (PMI), using a publicly funded loan loss reserve instead, which cuts a major monthly cost when you put less than 20% down.
- Down payment: At least 3% down on a condo, single-family, or two-family home (at least 1.5% from your own funds), and 5% down on a three-family (at least 3% from your own funds).
- Pricing: Lenders cannot charge discount points and must price the loan below a market benchmark.
- Interest subsidy: Buyers at or below 80% AMI on a condo, single-family, or two-family home can get a subsidy that 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: Minimum representative score of 640 for a single-family or condo, or 660 for a two- or three-family home; nontraditional credit is allowed for borrowers without enough credit history.
Under the November 2024 ONE Mortgage guidelines, household assets cannot exceed $100,000, excluding retirement accounts, government-approved college savings plans, municipal buy-downs, and qualifying community or employer down payment assistance. An older line on MHP's online calculator page still says $75,000, so confirm how assets are counted with a participating lender.
MHP's 2026 household income limits for Worcester and most of Worcester County (updated May 2026) set both the 80% AMI interest-subsidy threshold, which matches the city grant's FY2026 limits, and the 100% AMI cap for ONE Mortgage:
| Household size | 80% AMI (interest subsidy) | 100% AMI (ONE Mortgage limit) |
|---|---|---|
| 1 person | $73,750 | $92,200 |
| 2 people | $84,300 | $105,400 |
| 3 people | $94,850 | $118,550 |
| 4 people | $105,350 | $131,700 |
| 5 people | $113,800 | $142,250 |
| 6 people | $122,250 | $152,800 |
| 7 people | $130,650 | $163,350 |
| 8 people | $139,100 | $173,850 |
Income limits change each year, so confirm your household's numbers with a participating lender.
MassHousing Down Payment Assistance
Available statewide since June 2025, MassHousing Down Payment Assistance pairs with a MassHousing first mortgage through one of more than 80 approved lenders.
You must be an income-eligible first-time buyer (no ownership interest in a principal residence in the three years before closing), have at least a 640 credit score on the paired first mortgage, and complete an approved homebuyer class.
- Workforce Advantage DPA: Up to $30,000 as a 0% interest, deferred second mortgage with no monthly payments, due only when you sell, refinance, or pay off the first mortgage.
- Standard amortizing DPA: Up to $25,000 as a 15-year fixed-rate loan with monthly payments for buyers up to 135% AMI, with a lower rate tier at or below 80% AMI.
For loans locked on or after June 15, 2026, Workforce Advantage income limits in Worcester are $55,320 for 1 person, $63,240 for 2 people, $71,160 for 3 people, and $79,020 for 4 people.
For the amortizing loan in Worcester County (effective June 15, 2026), the 80% AMI cap is $101,760 and the 135% AMI cap is $171,720. You can test how either option affects your payment in our Home Affordability Calculator.
Check Your Massachusetts Home Purchase Eligibility
Closed Programs You May Still Hear About
Three programs that still come up in older posts and social threads are closed as of October 2026:
- City ARPA Downpayment Assistance (was up to $25,000): The city's official ARPA webpage now lists Downpayment Assistance under "Closed Programs."
- MassDREAMS (was up to $50,000 at or below 100% AMI, $35,000 up to 135% AMI): MassHousing suspended this 2022 grant for 29 communities, including Worcester, on November 30, 2022 when funds ran out.
- MassHousing temporary 0% $25,000 offer (spring 2026): Rate locks ended after July 2, 2026; the 15-year amortizing $25,000 loan returned July 6, 2026, and the $30,000 Workforce Advantage 0% deferred option stayed open.
Buying a Worcester Three-Decker
Every active program covered here allows multi-unit homes you live in, though ONE Mortgage and ONE+ stop at three units while MassHousing and the city grant go up to four.
Living in one unit and renting the others lets you build equity while tenants help cover the mortgage; see our guide to multifamily mortgages in Massachusetts for how rental income helps you qualify.
| Program | Max units | Down payment and credit | Extra rules |
|---|---|---|---|
| ONE Mortgage and ONE+ | 3 | 3% down on a two-family (1.5% own funds), 5% on a three-family (3% own); 660 credit; no interest subsidy on a three-family | Landlord course or counseling before closing; post-purchase class within a year |
| MassHousing mortgage and DPA | 4 | 640 credit; down payment varies by units and loan | Landlord counseling for 2–4 units on Workforce Advantage; primary residence |
| City CDBG grant | 4 | Up to $5,000, up to half the required down payment | Vacant or seller-occupied 3 months before the offer (2019 guidelines; confirm) |
Many Worcester three-deckers are sold with tenants in place, so the three-month vacancy rule can rule out the city's $5,000 grant unless the city applies it differently today. With ONE Mortgage or MassHousing, you must live in one unit as your primary residence, so ask your lender early how existing leases are handled.
Which Homebuyer Class to Take, and When
Every program here requires a pre-purchase first-time homebuyer class before closing, and because the city grant has a 45-day application window, sign up while you are getting pre-approved.
- Where to find classes: The Citizens' Housing and Planning Association (CHAPA) certifies education agencies across Massachusetts; find approved courses at chapa.org or MyMassHome.
- City standard: Worcester's CDBG guidelines require a course that is HUD-certified or Massachusetts Homeownership Collaborative-accredited.
- Landlord counseling: Buying a 2–4 unit home with ONE Mortgage, ONE+, or MassHousing Workforce Advantage also requires a landlord class or counseling before closing.
- After closing: Borrowers using ONE Mortgage or ONE+ also agree to take a post-purchase class within one year of closing.
City Help After You Buy
The city's FY2026 Housing Programs Overview lists four repair and hazard programs for income-eligible owner-occupants after purchase; confirm current funding and open status with the Housing Development Division.
- Worcester Housing Now: Up to $25,000 per unit for 1–4 unit owner-occupied homes, aimed at triple-deckers and multifamily properties, with a 5-year restriction.
- Worcester Lead Abatement Program: Up to $75,000 per unit to abate lead hazards in pre-1978 homes where a child under age six lives, for owners below 80% AMI, with a 5-year deed restriction.
- Healthy Homes Program: Up to $30,000 per unit to fix health and safety hazards such as mold, radon, asbestos, and missing CO or smoke detectors for households below 80% AMI.
- CDBG Elder Home Repair: Up to $25,000 per unit for homeowners age 62 and older in 1–4 unit owner-occupied homes at or below 80% AMI, with a 5-year owner-occupancy restriction.
Which Path Fits You
Your income, current address, and property type point to which program to ask a lender about first:
- Current Worcester resident at or under 100% AMI: Ask a participating lender to run ONE+ first for the permanent rate discount and down payment help.
- Household income at or under 80% AMI: See if the property fits the city's $5,000 CDBG grant rules, and ask about the ONE Mortgage interest subsidy if you are buying a one- or two-unit home or condo.
- Income under the Workforce Advantage limits: Check MassHousing's $30,000 0% deferred loan, which adds no monthly payment.
- Above 80% up to 135% AMI, or living outside Worcester: Look at MassHousing's $25,000 15-year amortizing loan, which adds a monthly payment and is due when you sell, refinance, or pay off the first mortgage.
You apply for MassHousing, ONE Mortgage, and city programs through participating lenders or the City of Worcester Housing Development Division, so confirm current 2026 income limits and terms directly with them.
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