If you are buying your first home in Greater Boston, you do not have to come up with 20 percent down. Massachusetts has real first-time buyer programs that lower the down payment, cut or remove mortgage insurance, and in some cases hand you money toward the down payment. Knowing which one fits can save you thousands.
Here is the short version. The two you hear about most are MassHousing and the ONE Mortgage program from MHP. MassHousing offers down payment assistance and competitive loans. ONE Mortgage offers a low down payment with no private mortgage insurance. Both have income limits and both require a homebuyer education class. Program dollar amounts and limits update over time, so confirm the current terms with a participating lender.
Who this applies to
First-time buyers, generally defined as someone who has not owned a home in the last three years, who meet the income limits for the program and the area. These programs are widely used across Greater Boston and the South Shore.
MassHousing
MassHousing is a state agency that offers mortgages for first-time and repeat buyers, plus down payment assistance for eligible first-time buyers. The down payment assistance has been offered up to $30,000 in recent rounds, structured as a second loan with favorable or deferred terms depending on the current program. Income eligibility reaches relatively high, up to around 135 percent of area median income, which varies by region, so many Greater Boston households qualify. A homebuyer education course is required. Because the exact assistance amount and structure change with each program round, confirm today's offer with a MassHousing-approved lender.
ONE Mortgage (from MHP)
ONE Mortgage is a program from the Massachusetts Housing Partnership. It is a 30-year fixed-rate loan with as little as 3 percent down, no private mortgage insurance, and a publicly subsidized structure for eligible low- and moderate-income buyers. No PMI is a real monthly savings compared with many low-down-payment loans. Income and purchase-price limits vary by community and household size, and a homebuyer education class is required.
Program comparison
| Feature | MassHousing | ONE Mortgage (MHP) |
|---|---|---|
| Down payment | Low, with possible assistance | As little as 3 percent |
| Down payment help | Yes, up to a set amount in recent rounds | Not a grant, but low down and no PMI |
| Private mortgage insurance | Varies by loan | None |
| Income limits | Up to about 135 percent of area median, varies | Varies by community and household size |
| Education class | Required | Required |
How to position yourself
Take the homebuyer education class early, since both programs require it and it helps you shop with confidence. Get pre-approved with a lender who offers these programs so you know exactly which one you qualify for and what your real numbers look like. And do not assume you earn too much, since the income limits, especially for MassHousing, are higher than many buyers expect.
The bottom line
You likely have more first-time buyer options in Massachusetts than you think. MassHousing can lower your down payment and sometimes help fund it. ONE Mortgage offers 3 percent down with no PMI. Confirm the current terms with a participating lender, since the numbers update.
FAQ
Common questions, answered.
Who counts as a first-time buyer?
Generally, someone who has not owned a home in the past three years and meets the program's income limits.
Do I really not need 20 percent down?
Correct. These programs allow much less, and 20 percent is not required for most buyers.
What is PMI and why does no PMI matter?
Private mortgage insurance is an extra monthly cost on many low-down-payment loans. ONE Mortgage has none, which lowers your payment.
Are the income limits low?
Not as low as people assume. MassHousing eligibility reaches up to around 135 percent of area median income, which varies by region, so many Greater Boston households qualify.
