MassHousing Down Payment Assistance

What is MassHousing Down Payment Assistance?

MassHousing Down Payment Assistance is a repayable second loan for homebuyers in Massachusetts.

• MassHousing offers down payment assistance of up to $30,000 statewide in Massachusetts. Assistance is structured as a second mortgage with terms based on borrower income: 0% deferred loan for incomes below 60% AMI; 2% amortizing loan for incomes 60-80% AMI; 3% amortizing loan for incomes 80-135% AMI (in Boston and Gateway Cities). Must be used with a MassHousing first mortgage.
• Up to $30,000 in down payment and closing cost assistance statewide in MA.
• tiered by income: 0% deferred loan below 60% AMI, 2% fixed for 60-80% AMI, 3% fixed for 80-135% AMI (Boston/Gateway Cities).
• 15-year second mortgage.
• must be paired with a MassHousing first mortgage.
• available in every city and town in Massachusetts.
• Funding comes from State.

How much assistance does it provide?

MassHousing Down Payment Assistance offers up to $50,000 in assistance.

• Amounts are the program's published maximums, not an offer — the administering agency determines any individual award.

Do you have to pay it back?

MassHousing Down Payment Assistance is a repayable second loan and is repaid under the terms set by the administering agency.

• Repayment is triggered by Sale and Refinance.
• 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?

MassHousing Down Payment Assistance is open to first-time homebuyers and buyers who will live in the home as their primary residence.

What are the income limits?

MassHousing Down Payment Assistance limits household income to 100% of the area median income, which varies by county and household size.

• 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?

MassHousing Down Payment Assistance caps the purchase price at $653,700.

• Eligible property types include Single Family, Condo, Townhouse, and 2-4 Unit.

Where does it apply?

MassHousing Down Payment Assistance serves buyers purchasing anywhere in Massachusetts.

How do you apply?

Applications for MassHousing Down Payment Assistance 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 before funds are reserved.

2. 2

   Contact the administering agency to reserve funds

   Funds are reserved through First-Come-First-Served, 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.