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DPA 2% 15 Year Amortized

Statewide, Massachusetts

Last verified
See what you qualify forOfficial program site →
Income limit

100% AMI

Of area median income; varies by county and household size

Repayment

Grant

Not repaid

What is DPA 2% 15 Year Amortized?

DPA 2% 15 Year Amortized is a grant for homebuyers in Statewide, Massachusetts.

  • MassHousing 15-year fully amortizing 2% second mortgage DPA up to $25,000. Lower-income tier (up to 100% AMI non-Gateway; up to 135% AMI Boston/Gateway). Pairs with MassHousing first mortgage. 640 FICO. Statewide.
  • MassHousing's DPA 2% 15-Year Amortized Second Mortgage provides up to $25,000 in down payment and closing-cost assistance for first-time homebuyers using a MassHousing first mortgage. Structured as a 15-year fully amortizing second mortgage at a fixed 2.000% interest rate (2.000% APR), with monthly principal and interest payments alongside the first mortgage. On a $25,000 DPA, the monthly P&I payment is $160.88 for 180 months. This is the LOWER-INCOME tier - household income up to 100% AMI in non-Gateway communities, up to 135% AMI in the City of Boston and 26 designated Gateway Cities. Pairs with MassHousing 30-year fixed-rate first mortgages (FHA, Conventional 97/95, HFA Advantage, VA, USDA via MassHousing correspondents). 640 minimum FICO. First-time homebuyer required. Statewide eligibility - all 351 cities and towns in Massachusetts.
  • Funding comes from State and Bond.

Do you have to pay it back?

DPA 2% 15 Year Amortized is structured as a grant, so it is not repaid.

  • Repayment is triggered by 15-year fully amortizing second mortgage at 2.000% APR. Monthly principal and interest payments due alongside first mortgage. $25,000 DPA = $160.88/month for 180 months. Balance also accelerates on sale, refinance of first, transfer of title, payoff, or non-owner-occupancy.
  • The assistance is recorded in 2nd Lien position.
  • Forgiveness and repayment terms are set by the program and can change — confirm them on the official program page before applying.

Who qualifies?

DPA 2% 15 Year Amortized is open to first-time homebuyers and buyers who will live in the home as their primary residence.

The program requires

  • First-time homebuyer — with exceptions: First-time homebuyer requirement waived in federally designated targeted census tracts and for qualifying veterans (federal MRB qualified-veteran exception under IRS Section 143(d)(2)(B)).
  • The home is occupied as a primary residence
  • On credit: 640 minimum FICO across all eligible MassHousing first-mortgage products.
  • A completed homebuyer education course, through MassHousing-approved homebuyer education providers (CHAPA-network counseling agencies, HUD-approved counselors). 8-hour pre-purchase course required prior to closing.
  • Residency: Property must be located in Massachusetts (any of 351 cities/towns) and serve as borrower's primary residence. No prior MA residency requirement.
  • Citizenship or immigration status: U.S. citizen, permanent resident, or qualifying non-permanent resident alien per first-mortgage product overlays.
  • First-time homebuyer required (no ownership of a primary residence in the past 3 years); waived in federally targeted census tracts and for qualifying veterans. Owner-occupied primary residence (1-4 units; condo project-approved). 640 minimum FICO. 45% maximum DTI (some overlays may permit 50% with compensating factors). Household income at or below 100% AMI for non-Gateway communities or 135% AMI for Boston/Gateway Cities (verify by household size and county). Must use a MassHousing-approved participating lender. Homebuyer education required (8-hour CHAPA-network pre-purchase course). DPA is paired with a MassHousing first mortgage - cannot be used standalone.

The program excludes

  • Manufactured homes
  • Households above 100% of area median income

These are the program's own published rules, not a decision about any individual — the administering agency and a lender determine who actually qualifies.

What are the income limits?

DPA 2% 15 Year Amortized limits household income to 100% of the area median income, which varies by county and household size.

  • MassHousing 2026 income limits: up to 100% AMI in non-Gateway communities (varies by county/household; e.g., $76,960 1-person Boston-Cambridge balance-of-state to $130,800 4+ person Boston/Gateway 100% tier). Borrowers in Boston + 26 designated Gateway Cities (Attleboro, Barnstable, Brockton, Chelsea, Chicopee, Everett, Fall River, Fitchburg, Framingham, Haverhill, Holyoke, Lawrence, Leominster, Lowell, Lynn, Malden, Methuen, New Bedford, Peabody, Pittsfield, Quincy, Randolph, Revere, Salem, Springfield, Taunton, Westfield, Worcester) qualify up to 135% AMI. Verify by county and household size on MassHousing income-limits page.
  • The limit applies to total household income, not only the borrower’s.
  • 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?

DPA 2% 15 Year Amortized caps the purchase price as follows: MassHousing 2026 maximum purchase price approximately $838,717 in most areas (1-unit), with higher limits in Boston/Cambridge and 2-4 unit properties. Verify on MassHousing limits page; limits adjust annually with FHFA conforming caps.

  • Eligible property types include Single-family detached, 2-4 unit owner-occupied, condominium (project-approved), townhouse, PUD. Per MassHousing first-mortgage overlays.
  • New construction is eligible.
  • Manufactured homes are not eligible.

Is there eligibility for specific groups?

DPA 2% 15 Year Amortized names veterans, active-duty service members, reservists and National Guard members, and surviving spouses among the groups it serves.

  • Being named here means the program mentions the group, not that membership alone qualifies an applicant — the rest of the eligibility rules still apply.

Where does it apply?

DPA 2% 15 Year Amortized serves buyers purchasing in Statewide, Massachusetts.

  • The program targets specific areas: Federally designated targeted census tracts (per IRS Section 143) plus Boston and 26 designated Gateway Cities qualify for higher 135% AMI income limits and (for the deferred WFA 4.0 product) higher $50,000 DPA cap. Verify by jurisdiction.

How do you apply?

Applications for DPA 2% 15 Year Amortized go through the administering agency, which publishes the current terms and the application steps on its own site.

  1. Take a homebuyer education course

    Required by the program, through MassHousing-approved homebuyer education providers (CHAPA-network counseling agencies, HUD-approved counselors). 8-hour pre-purchase course required prior to closing..

  2. Contact the administering agency to reserve funds

    Funds are reserved through Reserved through MassHousing eMasshousing lender portal at time of rate lock by MassHousing-approved participating lender. Daily rate sheet posted on lender library., and are subject to availability.

  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.

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