You do not need 20% down to buy a home in Greater Boston. Depending on the loan you use you can buy with as little as 3 to 3.5% down, and some buyers who qualify put nothing down at all.
Twenty percent is a target that helps you avoid mortgage insurance and strengthen an offer, but it is not a requirement, and waiting until you have it is often the most expensive decision a buyer makes. What actually drives your number is the loan program you choose, your credit, and how competitive you need your offer to be in the town you are targeting.
Who this applies to
Anyone buying a primary home in Greater Boston or on the South Shore: first-time buyers, people moving up or down, and buyers relocating into the area. Investment properties and second homes follow different and higher down payment rules, so if that is your situation the minimums below do not apply to you. Everything here assumes a home you plan to live in.
The real minimums by loan type
Your down payment floor is set by the loan program, not by your agent and not by the seller. These are the common paths for owner-occupant buyers.
| Loan type | Typical minimum down | Mortgage insurance | Who it fits |
|---|---|---|---|
| Conventional (Fannie Mae / Freddie Mac) | 3 to 5% | Private mortgage insurance if you put down under 20%, removable later | Buyers with solid credit who want the most flexibility |
| FHA | 3.5% | Mortgage insurance often for the life of the loan unless you refinance | Buyers with lower credit scores or thinner savings |
| VA | 0% | None | Eligible veterans, active duty service members, and some surviving spouses |
| USDA | 0% | Guarantee fee applies | Buyers in eligible rural areas, subject to income limits |
| ONE Mortgage (Massachusetts Housing Partnership) | 3% for a condo, single-family, or two-family, and 5% for a three-family | None | Income-eligible first-time buyers, meaning no ownership interest in the last 3 years |
| MassHousing | As low as 3% | Varies by product | Some MassHousing first mortgages do not require first-time buyer status, but the down payment assistance is first-time buyers only |
Program terms checked against the Massachusetts Housing Partnership and MassHousing program pages in August 2026. These programs change their limits and assistance amounts periodically, so confirm current terms with a participating lender before you count on a specific number.
A few things worth understanding underneath that table. Conventional loans let qualified buyers, often first-timers, start at 3%, though many buyers land at 5%. FHA is the widely used credit-friendly option at 3.5%, with the trade-off that its mortgage insurance often stays for the life of the loan unless you refinance. VA loans are one of the strongest tools available and are badly underused, so if you or your spouse served, ask about eligibility before assuming you cannot buy.
The two Massachusetts programs worth asking about by name
ONE Mortgage, offered through the Massachusetts Housing Partnership, is a 30-year fixed-rate loan with no private mortgage insurance, which lowers the monthly payment meaningfully. The minimum down payment is 3% for a condo, single-family, or two-family home, and 5% for a three-family. That distinction matters more here than it would in most markets, because so much South Shore and Greater Boston inventory is two and three family. It also carries a 0.3% interest rate discount, and qualified borrowers can get a state-funded buy-down that reduces payments in the early years.
MassHousing is the other one to ask about. Its down payment assistance now reaches up to $30,000, and the program was expanded statewide to include middle-income buyers earning up to 135% of area median income, which takes in a lot of households that assume they earn too much to qualify for anything. Read the eligibility carefully though: some MassHousing first mortgages are available without first-time buyer status, but the down payment assistance itself is limited to first-time buyers.
Both programs carry income limits and other requirements, and the exact dollars move over time. Treat them as programs to get qualified for, not as guarantees.
What changes when you put more down
More money down is not just about clearing a minimum. It changes three things at once.
Your monthly payment drops, because a larger down payment means a smaller loan, before you even factor in insurance.
Your private mortgage insurance goes away sooner. On a conventional loan, putting less than 20% down means paying private mortgage insurance until you reach roughly 20% equity, at which point you can request removal, and it cancels automatically near 22% equity by law. That is a real monthly cost, but it is the price of getting into a home years earlier, and it is not permanent.
Your offer reads differently to a seller. In a competitive town a stronger down payment can signal a more secure buyer, especially paired with a solid pre-approval. It does not need to be 20% to be credible, but it is part of the picture a listing agent weighs.
What it actually costs to wait for 20%
Here is the trade most buyers never run the numbers on. Saving from a low down payment up to a full 20% in Greater Boston can take years, and during those years two things work against you. Prices in strong South Shore and Greater Boston towns have generally kept climbing, so the 20% target itself keeps moving higher. And you are paying rent the whole time instead of building equity.
Buying earlier with mortgage insurance, then removing it later as your equity grows, often costs less over time than waiting to avoid it entirely. That will not be true for everyone, and it depends on your rate, your town, and how disciplined a saver you are. But the assumption that you must have 20% is the single most common reason capable buyers sit on the sidelines longer than they needed to.
The money you need beyond the down payment
Your down payment is not the only cash you need at the table. In Massachusetts, plan for closing costs, which for buyers typically run about 2 to 5% of the price, plus your deposits along the way.
When you go under contract here you usually put down a small good-faith deposit with the offer, then a larger deposit at the Purchase and Sale Agreement. That total is negotiated rather than fixed by rule, though it commonly lands around 3 to 5% of the price, and it is generally credited toward what you owe at closing. So it is not extra money, but you do need it liquid and ready well before closing day.
How to position yourself
Start with a real pre-approval rather than a quick online estimate, so you know which programs you qualify for and what your true minimum is. Ask your lender directly about conventional 3% options, FHA, VA if you are eligible, and the Massachusetts programs by name. Then decide how much to put down based on the monthly payment you can carry and how competitive your target town is, not on a 20% rule you inherited from someone else.
The bottom line
You need far less than most people think to buy in Greater Boston. The minimums start at 0 to 3.5% depending on the program, and Massachusetts runs loans designed specifically for buyers who have income but limited savings. 20% is a useful goal, not a gate. The better question is not how do I reach 20%, it is which program fits me, what payment can I carry, and what does it cost me to wait.
FAQ
Common questions, answered.
Can I really buy a home in Greater Boston with 3% down?
Yes. Conventional loans allow qualified buyers to put down as little as 3%, FHA allows 3.5%, and the Massachusetts ONE Mortgage program offers 3% down with no private mortgage insurance on a condo, single-family, or two-family home. A three-family under ONE Mortgage requires 5% down.
Do I have to pay private mortgage insurance forever?
No. On a conventional loan, private mortgage insurance can be removed once you reach about 20% equity, and it cancels automatically by law near 22% equity. FHA mortgage insurance is different and often stays for the life of the loan unless you refinance, which is one reason to compare loan types carefully rather than just comparing rates.
Is it smarter to wait until I have 20% down?
Usually not, though it depends on your situation. Waiting means more years of rising prices and paying rent instead of building equity, while the 20% target keeps climbing along with prices. For many buyers, buying earlier with mortgage insurance and removing it later costs less overall than waiting to avoid it.
How much total cash do I need beyond the down payment?
Plan for closing costs, which for buyers in Massachusetts typically run about 2 to 5% of the purchase price, plus your deposits. The deposit amount is negotiated rather than set by rule and often lands around 3 to 5%. It is credited toward what you owe at closing, but you need it liquid well before then.
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