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First Time Home Buyer Down Payment Assistance Program

Gloucester, Massachusetts

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See what you qualify forOfficial program site →
Assistance

50%

Of the purchase price, as the program sets it

Income limit

80% AMI

Of area median income; varies by county and household size

Repayment

Deferred

No payments until the home is sold or refinanced

What is First Time Home Buyer Down Payment Assistance Program?

First Time Home Buyer Down Payment Assistance Program is a deferred second loan for homebuyers in Gloucester, Massachusetts.

  • The City of Gloucester First Time Home Buyer Down Payment Assistance Program offers a 0% interest deferred second mortgage of up to $15,000, equal to 50% of the required down payment, to income-qualified first-time buyers purchasing a home within the City of Gloucester. Funded with HUD HOME / CDBG / Community Preservation Act funds via the City's Community Development Department, the program is administered by the Grants Division and pairs with MassHousing, MHP ONE Mortgage, FHA, VA, USDA, and conventional first mortgages. The deferred loan is repaid only when the home is sold, refinanced with cash-out, rented, or no longer the buyer's primary residence.
  • Up to $15,000 in down payment and/or closing cost assistance, equal to 50% of the required down payment, structured as a 0% interest deferred loan. No monthly payments. Loan repaid in full only at sale, transfer, refinance with cash-out, rental, or when home is no longer the borrower's principal residence.
  • Funding comes from HOME, CDBG, CPA, and Local Government.

How much assistance does it provide?

First Time Home Buyer Down Payment Assistance Program provides assistance worth 50% of the purchase price, as set by the program.

  • Buyer contribution: Buyer must contribute the remaining 50% of down payment from own funds or other sources.
  • The program can be combined with other assistance, subject to the rules of each.
  • Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

First Time Home Buyer Down Payment Assistance 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 Due in full at sale, transfer of title, refinance with cash-out, rental of property, or when property is no longer the borrower's principal residence.
  • 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?

First Time Home Buyer Down Payment Assistance Program 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 buyer required (no homeownership in past 3 years); displaced-homemaker and divorced single-parent exceptions per MA standard.
  • The home is occupied as a primary residence
  • On credit: 660 minimum for conforming/conventional; 680 for FHA per City underwriting guidelines
  • A completed homebuyer education course, through CHAPA-certified or HUD-approved homebuyer education required prior to closing; North Shore Community Action Program and other regional CHAPA partners commonly used.
  • Residency: Property must be located in the City of Gloucester and used as the borrower's principal residence.
  • Citizenship or immigration status: U.S. citizen or eligible non-citizen per first-mortgage product and HUD HOME rules
  • Must be a first-time homebuyer (no ownership in past 3 years). Property must be located in the City of Gloucester and used as principal residence. Award covers up to 50% of required down payment plus closing costs. Minimum 6 weeks from signed P&S agreement is required to process the award. Application is submitted online via the Neighborly portal. Buyer must complete a CHAPA-approved homebuyer education class. Loan is 0% interest, deferred, and repayable on sale, refinance with cash-out, rental, or loss of owner-occupancy. Income limits at 80% of HUD AMI for the Boston-Cambridge-Newton MSA: 1-person ~$82,950 to 8-person ~$156,400. Max FICO 660-680 per Massachusetts municipal underwriting standards (matches MassHousing partner thresholds).

The program excludes

  • Manufactured homes
  • Households above 80% 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?

First Time Home Buyer Down Payment Assistance Program limits household income to 80% of the area median income, which varies by county and household size.

  • Household income at or below 80% HUD AMI for the Boston-Cambridge-Newton MA-NH HMFA: 1-person $82,950 to 8-person $156,400 (FY2025 limits, current as of April 2026).
  • 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?

First Time Home Buyer Down Payment Assistance Program caps the purchase price as follows: No fixed dollar cap published; subject to first-mortgage and appraisal underwriting and HUD HOME 95% median-value rule.

  • Eligible property types include Single-family detached, Condominium, and 2-4 unit owner-occupied.
  • New construction is eligible.
  • Manufactured homes are not eligible.

Where does it apply?

First Time Home Buyer Down Payment Assistance Program serves buyers purchasing in Gloucester, Massachusetts.

How do you apply?

Applications for First Time Home Buyer Down Payment Assistance Program 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 CHAPA-certified or HUD-approved homebuyer education required prior to closing; North Shore Community Action Program and other regional CHAPA partners commonly used..

  2. Contact the administering agency to reserve funds

    Funds are reserved through First-come, first-served via Gloucester's Neighborly online portal once buyer has signed P&S; minimum 6-week processing window., 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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