Is there down payment assistance available for first-time home buyers in Massachusetts in 2026?

Yes. MassHousing is currently offering up to $25,000 in interest-free down payment assistance to first-time buyers in Massachusetts who lock in their mortgage between April 27 and July 31, 2026. To qualify, household income must be at or below 135% of area median income, which in eastern Massachusetts including Greater Boston is $205,335. The City of Boston has a separate grant program offering up to $50,000 for eligible buyers purchasing within city limits.

By John Hollis | May 28, 2026

Buying your first home in Greater Boston in 2026 is not easy. Entry-level homes in MetroWest, the North Shore, and the South Shore are starting above $700,000. The income required to qualify for a starter home has nearly doubled in four years, jumping from around $98,000 in 2021 to over $162,000 today. Mortgage rates are sitting in the mid-to-high 6% range. None of that is news to anyone who's been trying to buy.

What most people don't know is that there's meaningful help available right now, and the window to access it closes on July 31.

If you're a first-time buyer in Massachusetts and you've been sitting on the sidelines waiting for prices to come down or rates to drop, this post is worth your time.

What MassHousing Is Offering Right Now

In late April 2026, Governor Healey expanded eligibility for MassHousing's down payment assistance program and made a limited-time offer available: up to $25,000 in interest-free assistance for first-time buyers who lock in their mortgage between April 27 and July 31, 2026.

That's not a typo. Zero interest. Deferred repayment. The money doesn't accumulate interest while you're paying down your mortgage.

Here's who qualifies:

• You must be a first-time buyer, meaning you haven't owned a primary residence in the past three years
• Your household income must be at or below 135% of area median income
• In eastern Massachusetts, including the entire Greater Boston region, that income limit is $205,335
• In Worcester County the limit is $165,645
• You must work with a MassHousing-approved lender to access the program

The assistance can be used to cover your down payment, closing costs, prepaid mortgage insurance, or to buy down your interest rate. That flexibility matters. In a market where closing costs alone can run $15,000 to $30,000, having $25,000 available to direct where it's most useful gives you real options.

MassHousing also has a standard down payment assistance program with up to $30,000 available outside this limited-time offer, so if you miss the July 31 window, assistance doesn't disappear entirely. But the interest-free terms are specific to this current promotion.

If You're Buying in the City of Boston

Boston buyers have access to a separate city-funded grant program that runs on top of state programs.

The City of Boston's First-Time Homebuyer Program offers:

• 3% of the purchase price, up to $50,000, for buyers with household income at or below 100% of area median income
• 2% of the purchase price, up to $35,000, for buyers with income between 101% and 135% of AMI

On a $750,000 condo in South Boston or Jamaica Plain, that could mean $22,500 toward your down payment and closing costs, funded entirely by the city. For Boston Housing Authority tenants, an enhanced program offering up to $75,000 in assistance is available through late 2026.

The City of Boston program is separate from MassHousing, with its own application and eligibility requirements. Whether the two can be combined depends on which specific programs you're using and which lender you're working with. Your MassHousing-approved lender can map out what's stackable for your situation.

Other Programs Worth Knowing About

MassHousing also runs the ONE Mortgage Program, which offers below-market interest rates for first-time buyers who meet income and purchase price limits. In a market where a half-point difference in rate translates to hundreds of dollars per month, this one is worth checking even if you don't need down payment help.

The Federal Home Loan Bank of Boston provides additional forgivable grants through participating lenders. These are less well-known but available, and a good lender will know whether you qualify.

Massachusetts is one of the more active states when it comes to buyer assistance programs, partly because the affordability crisis here is acute. The programs exist. Most buyers just never hear about them until after they've already been grinding through the process alone.

How This Changes Your Numbers in Greater Boston

Let's put some concrete numbers to this.

Say you're buying a single-family home in Framingham at $775,000, which is right in line with what MetroWest is selling for in spring 2026. A conventional loan with a 5% down payment requires $38,750 out of pocket before you've paid a dollar in closing costs. Add in attorney fees, title insurance, lender fees, and prepaid escrows, and you're looking at $55,000 to $65,000 needed at the closing table.

With $25,000 in MassHousing interest-free assistance, that same transaction requires roughly $30,000 to $40,000 out of pocket. Still not nothing, but for buyers who have been saving and are close but not quite there, this is the difference between buying this year and waiting another two or three.

In the current market, that delay has a real cost. Home values in MetroWest were up more than 10% year over year through early 2026. Waiting 18 months for the same house often means paying $75,000 more for it.

The math on acting now is more favorable than most buyers realize, and this assistance program makes the entry point meaningfully lower.

One thing I hear regularly from first-time buyers: will using down payment assistance hurt my offer? The short answer is no, if it's handled correctly. MassHousing DPA attaches to a conventional mortgage. It doesn't add government-loan conditions that sellers dislike. Your offer looks like a standard financed offer. The key is working with an agent who understands how to present it cleanly, and with a lender who's done this before. If you've been trying to compete in the Greater Boston market and struggling, this tool doesn't weaken your position. In fact, it can free up reserves that make your offer stronger in other ways.

There are common mistakes buyers make during this process that can complicate access to these programs. The biggest one: making major financial moves (new credit accounts, large cash deposits, changing jobs) between pre-approval and closing. DPA lenders are underwriting you carefully. Keep your financial profile stable from the moment you apply.

Frequently Asked Questions

How much down payment assistance is available for Massachusetts first-time buyers in 2026?

MassHousing is currently offering up to $25,000 in interest-free down payment assistance to eligible first-time buyers who lock in their mortgage between April 27 and July 31, 2026. Separately, the City of Boston offers grants of up to $50,000 for buyers purchasing within city limits who earn at or below 100% of area median income.

What are the income limits for the MassHousing down payment assistance program?

Household income must be at or below 135% of area median income. In eastern Massachusetts, including Greater Boston, that limit is $205,335. In Worcester County the limit is $165,645. These limits apply to the total household income, not individual earners.

Does using down payment assistance make my offer less competitive in Greater Boston?

Not necessarily. MassHousing DPA is attached to a conventional mortgage, not a government loan with extra seller conditions. Your offer still looks like a financed offer with standard contingencies. The key is working with an agent who understands how to structure the offer so the assistance is invisible to the seller's side of the equation.

Can I use Massachusetts down payment assistance and the City of Boston grant at the same time?

Some programs can be combined and some cannot. MassHousing assistance can sometimes be layered with other state or local programs, but the terms depend on which lender and which specific programs are involved. Your MassHousing-approved lender can tell you exactly which combinations are permitted for your situation.

What counts as a first-time home buyer in Massachusetts for these programs?

For most Massachusetts programs, a first-time buyer is someone who has not owned a primary residence in the past three years. This means people who previously owned and sold, or who owned a home that was foreclosed, can qualify if enough time has passed.

The July 31 deadline on the interest-free assistance is real. If you're a first-time buyer in Massachusetts who has been doing the math and coming up short, now is the time to take a hard look at what these programs actually mean for your numbers.

If you're working through this for your own situation, we're happy to talk it through. We can connect you with MassHousing-approved lenders who know these programs, and we know how to structure offers that work in this market. Reach out to John Hollis Group at 617-431-1826 or visit johnhollisgroup.com.

About John Hollis

John Hollis is a Senior Real Estate Advisor and founder of John Hollis Group at Amo Realty, serving buyers and sellers across Greater Boston and surrounding Massachusetts for over 20 years. His team brings market insight, precise preparation, and strong advocacy to every transaction, from Boston to the North Shore, South Shore, MetroWest, and Southeastern Massachusetts.