Down Payment & Closing Cost Program

What is Down Payment & Closing Cost Program?

Down Payment & Closing Cost Program is a deferred second loan for homebuyers in Provincetown, Massachusetts.

• Provincetown's Down Payment & Closing Cost Program is funded by the Town's Community Preservation Act Community Housing reserve and administered by the Provincetown Housing Department. The program is intended to help year-round residents qualifying at the CPA 100% AMI or below afford the down payment and closing costs for purchase of a deed-restricted affordable Provincetown housing unit (LIP unit or equivalent). The loan is fully forgiven after 10 years of continuous primary occupancy.
• Up to $30,000 per eligible buyer toward down payment and closing costs for the purchase of an eligible deed-restricted affordable unit in Provincetown. Funded by the Town's Community Preservation Act (CPA) Community Housing reserve. Structured as a 0% interest deferred-payment loan.
• only repayable if the property is sold or transferred within 10 years of closing.
• Funding comes from Local Government and CPA.

Do you have to pay it back?

Down Payment & Closing Cost Program is deferred, so no payments are due until the home is sold, refinanced, or the first mortgage is paid off.

• Repayment is triggered by 0% interest deferred-payment loan and repayable in full only if property is sold or transferred within 10 years of closing. After 10 years, no repayment due.
• The assistance is recorded in 2 position.
• Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

Down Payment & Closing Cost Program is open to buyers who will live in the home as their primary residence.

What are the income limits?

Down Payment & Closing Cost Program limits household income to 100% of the area median income, which varies by county and household size.

• Household income at or below CPA 100% AMI Barnstable Town MSA: ~$87,010 1-person to ~$144,188 8-person (FY26).
• The limit applies to total household income, not only the borrower’s.
• The program lists a maximum household size of 8.
• Area median income figures are published by HUD and updated annually, so check the current table for the county before relying on a number.

What kind of home can it be used for?

Down Payment & Closing Cost Program caps the purchase price as follows: Determined by the Town's deed-restricted affordable price for the unit being purchased.

• Eligible property types include Single-family detached, Townhouse, and Condominium.
• New construction is eligible.
• Manufactured homes are not eligible.

Where does it apply?

Down Payment & Closing Cost Program serves buyers purchasing in Provincetown, Massachusetts.

How do you apply?

Applications for Down Payment & Closing Cost Program go through the administering agency, which publishes the current terms and the application steps on its own site.

1. 1

   Take a homebuyer education course

   Required by the program, through HUD-approved homebuyer counseling (Housing Assistance Corporation Cape Cod; HAC); 8-hour pre-purchase certificate required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Application accepted via Provincetown Housing Office; awards subject to CPA appropriation availability., and are subject to availability.

3. 3

   Work with a lender who handles the program

   Hey Prescott is not a lender and does not accept applications; this page describes the program so a buyer can take it to a lender or housing counselor.