DPA 3% 15 Year Amortized

What is DPA 3% 15 Year Amortized?

DPA 3% 15 Year Amortized is a grant for homebuyers in Statewide, Massachusetts.

• MassHousing 15-year fully amortizing 3% second mortgage DPA up to $25,000. Higher-income tier ($129,870 - $220,725, up to 135% AMI Boston/Gateway). Pairs with MassHousing first mortgage. 640 FICO. Statewide.
• MassHousing's DPA 3% 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 3.000% interest rate (3.000% APR), with monthly principal and interest payments alongside the first mortgage. On a $25,000 DPA, the monthly P&I payment is $172.62 for 180 months. This is the HIGHER-INCOME tier - household income approximately $129,870 - $220,725 (100-135% AMI larger households / Boston-Gateway high-cost tier). 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 3% 15 Year Amortized is structured as a grant, so it is not repaid.

• Repayment is triggered by 15-year fully amortizing second mortgage at 3.000% APR. Monthly principal and interest payments due alongside first mortgage. $25,000 DPA = $172.62/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 3% 15 Year Amortized is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

DPA 3% 15 Year Amortized limits household income to 135% of the area median income, which varies by county and household size.

• MassHousing 2026 higher-income tier: $129,870 (lower bound) to $220,725 (upper bound at 135% AMI 4+ person Boston/Gateway high-cost). Verify by household size and county on MassHousing income-limits page. Borrowers in Boston + 26 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.
• 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 3% 15 Year Amortized caps the purchase price as follows: MassHousing 2026 maximum purchase price approximately $838,717 in most areas (1-unit), higher in Boston/Cambridge and 2-4 unit. Verify on MassHousing limits page.

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

Is there eligibility for specific groups?

DPA 3% 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 3% 15 Year Amortized serves buyers purchasing in Statewide, Massachusetts.

• The program targets specific areas: Federally targeted census tracts plus Boston and 26 Gateway Cities qualify for higher 135% AMI income limits.

How do you apply?

Applications for DPA 3% 15 Year Amortized 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 MassHousing-approved homebuyer education providers (CHAPA-network counseling agencies, HUD-approved counselors). 8-hour pre-purchase course required..

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through Reserved through MassHousing eMasshousing lender portal at rate lock., 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.