First-Time Home Buyer Programs in Massachusetts: What’s Available in 2026
Massachusetts has more first-time home buyer assistance programs than most states — but they’re also more complicated to navigate. Income limits, purchase price caps, lender requirements, and counseling prerequisites vary by program, and the programs that get the most attention (often down payment assistance) aren’t always the most valuable for a given buyer’s situation.
This guide covers the primary programs available to first-time buyers on the North Shore in 2026, including who qualifies, what the benefit actually is, and what the process looks like in practice.
What Counts as a “First-Time Home Buyer” in Massachusetts
Most Massachusetts programs define a first-time home buyer as someone who has not owned a principal residence in the past three years. This means buyers who previously owned but haven’t for three or more years can qualify — an important point that many people don’t realize.
Some programs also have exceptions for certain target areas (census tracts where homeownership is encouraged), veterans, and buyers who lost a home in divorce. If you owned a home more than three years ago and are buying again, you may still qualify for first-time buyer programs.
MassHousing Loan Programs
MassHousing is the Massachusetts Housing Finance Agency — a quasi-public agency that issues below-market mortgage financing to qualifying buyers. MassHousing does not lend directly; it works through participating lenders (banks, credit unions, mortgage companies) who originate MassHousing-backed loans.
MassHousing Mortgage
The core MassHousing loan program offers 30-year fixed-rate mortgages with slightly below-market interest rates for qualifying buyers. Key features:
Income limits apply based on household size and the county where you’re buying. For Essex County (which covers the entire North Shore), limits range from roughly $130,000 to $175,000+ depending on household size — these are updated periodically so confirm current limits with a MassHousing-participating lender.
Purchase price limits also apply and are set by county. In Essex County, the limit for existing homes is typically in the $700,000–$800,000 range (subject to annual adjustment), which covers most of the North Shore market except the higher end of Beverly, Marblehead, and Swampscott.
Minimum down payment is 3% for first-time buyers with credit scores of 640+. MassHousing does not require private mortgage insurance (PMI) the way conventional loans do — instead, they use their own MI Plus insurance, which they subsidize, resulting in lower monthly costs than conventional loans at the same down payment level.
Credit score minimum: 640 for most programs.
MassHousing with Down Payment Assistance
MassHousing offers a down payment assistance (DPA) loan of up to 5% of the purchase price (up to $30,000 in most areas) as a second mortgage. Key terms:
The DPA loan is a 15-year fixed-rate loan at the same rate as the primary mortgage. It is not forgivable or a grant — it’s a loan that requires repayment. However, buyers can often finance most of the down payment and closing costs using the combination of the primary MassHousing loan and the DPA, dramatically reducing how much cash they need at closing.
Many buyers on the North Shore who think they can’t afford a home because of the down payment are surprised to learn that a MassHousing combination can get them into a $500,000 home with as little as $15,000–$25,000 out of pocket (down payment plus closing costs, after the DPA).
The ONE Mortgage Program
The ONE Mortgage program (previously called SoftSecond) is often cited as one of the most favorable mortgage products ever designed for first-time buyers. It’s offered through participating lenders in partnership with MassHousing and the Massachusetts Affordable Housing Alliance (MAHA).
Key features of ONE Mortgage:
Down payment: 3% minimum, entirely from the buyer (not gifted). The 3% requirement cannot be a gift — it must come from the buyer’s own savings.
No PMI ever. ONE Mortgage does not require private mortgage insurance at any down payment level. At 3% down on a $500,000 home, this saves roughly $200–$400 per month compared to a conventional loan with PMI.
Below-market interest rate. ONE Mortgage interest rates are subsidized below market rates, making monthly payments lower than comparable conventional financing.
Income limits are specific to the county and household size. Essex County limits are updated annually — in recent years they’ve typically been around $115,000–$150,000 for households of 1-2, higher for larger households.
Purchase price limits in Essex County are similar to MassHousing limits, generally covering the core of the North Shore market.
HUD-approved housing counseling is required. All ONE Mortgage borrowers must complete a HUD-approved first-time homebuyer education course — typically an 8-hour in-person or online class offered through MAHA or local housing agencies. This is not burdensome but must be completed before closing.
Housing Counseling: Required and Valuable
Most Massachusetts first-time buyer programs require completion of a HUD-approved homebuyer education course. The Massachusetts Affordable Housing Alliance (MAHA) offers courses online and in-person. Other approved providers include local community development organizations.
Beyond the requirement, the courses are genuinely useful: they cover credit, budgeting, the Massachusetts closing process, what to expect from inspections, and how to avoid predatory lending. Buyers who complete them — even those who don’t end up using a program that requires them — consistently report feeling more confident through the transaction.
Massachusetts Down Payment Assistance: Additional Options
Beyond MassHousing’s own DPA program, several additional sources of down payment and closing cost assistance are available to North Shore buyers:
MassDREAMS (Dream Realized with Equity from Additional Massachusetts Support)
MassDREAMS is a grant program (not a loan — no repayment required) for qualifying first-time buyers who were economically impacted by COVID-19. Grants up to $50,000 are available for buyers who meet income and purchase price limits and demonstrate pandemic-related financial hardship. Availability is limited; check with MassHousing or a participating lender for current status.
Federal Home Loan Bank of Boston AHP (Affordable Housing Program)
Member banks of the Federal Home Loan Bank of Boston can access affordable housing grants for qualifying first-time buyers. These are distributed through participating banks — ask your mortgage lender whether they have access to AHP funds, as availability varies and grants are allocated competitively.
Local Municipality Programs
Several Essex County municipalities have their own first-time buyer assistance programs, often funded through Community Preservation Act funds or CDBG grants. Beverly, Salem, and Peabody have had programs in the past; availability and funding levels change year to year. Contact each city’s Community Development office for current program status.
Conventional First-Time Buyer Programs
Even buyers who don’t qualify for state programs have options that are more favorable than standard conventional financing:
Fannie Mae HomeReady and Freddie Mac Home Possible both allow 3% down with reduced PMI costs for buyers at or below 80% of area median income. For Essex County, that income limit is in the $75,000–$85,000 range for a 1-2 person household — lower than the state programs, but an option for some buyers.
FHA loans allow 3.5% down with a 580+ credit score. FHA mortgage insurance is generally more expensive than MassHousing MI Plus, but FHA has no income limits and higher purchase price limits ($685,000 in Essex County as of 2026). For buyers who exceed MassHousing income limits, FHA may be the best path.
VA loans for eligible veterans and active service members offer 0% down with no PMI. VA loans are among the most powerful mortgage products available and are underutilized — if you or your spouse has military service, ask a lender about your VA eligibility before considering any other program.
How to Access These Programs on the North Shore
The path to any Massachusetts first-time buyer program runs through a participating lender, not through the state agency directly. The steps:
1. Confirm your eligibility — income, purchase price target, whether you meet the first-time buyer definition, credit score.
2. Complete a HUD-approved homebuyer education course if required (ONE Mortgage and some other programs mandate this before closing).
3. Get pre-approved through a MassHousing-participating lender. Many North Shore lenders participate — Daniel can refer you to lenders he’s worked with who are experienced with these programs. The pre-approval process in Massachusetts is the same regardless of the program, but the lender needs to know you’re interested in MassHousing or ONE Mortgage from the start.
4. Begin your home search. Daniel Meegan works with first-time buyers across the North Shore — Beverly, Salem, Swampscott, Peabody, Lynn, and surrounding communities — and has specific experience helping buyers who are using state financing programs navigate the market, including explaining seller perceptions and how to structure competitive offers.
First-Time Buyer Programs and Competitive Markets
One concern first-time buyers sometimes raise: does using a state program hurt my offer in a competitive market?
In most cases, no. MassHousing and ONE Mortgage are conventional-like programs and don’t change closing timelines or add unusual contingencies. A pre-approval for a MassHousing loan looks essentially the same to a seller as any other conventional pre-approval. Some listing agents may be unfamiliar with the programs — your agent should be prepared to explain them if needed.
Where financing type can matter is in highly competitive multiple-offer situations where sellers prefer cash or conventional-only offers. Daniel can advise on how to position your offer given current market conditions and the specific property.
Frequently Asked Questions: Massachusetts First-Time Home Buyer Programs
Do I have to be a first-time buyer to use MassHousing?
Most MassHousing programs require first-time buyer status (no primary residence ownership in the past 3 years), but there are exceptions for buyers in “target areas” — certain census tracts where homeownership programs are prioritized — and in some cases for veterans. Ask a participating lender about your specific situation.
What income limit applies for MassHousing in Essex County?
Income limits for Essex County vary by household size and are updated annually. In recent years they’ve ranged from approximately $130,000 for a 1-2 person household to $175,000+ for larger households. These are gross household income limits. Current limits should be confirmed with a participating MassHousing lender since they change annually.
Is the MassHousing down payment assistance a grant or a loan?
The MassHousing down payment assistance is a second mortgage loan — not a grant. It must be repaid over 15 years at the same interest rate as the primary mortgage. It is not forgivable. However, it dramatically reduces the cash needed at closing, making homeownership achievable for buyers who have income to support a mortgage but limited savings.
What is the ONE Mortgage program and who qualifies?
ONE Mortgage is a state-subsidized mortgage program offering below-market rates with no PMI ever for qualifying first-time buyers in Massachusetts. Eligibility requires income below Essex County limits (approximately $115,000–$150,000 for most household sizes), a purchase price within county limits, a minimum 3% down payment from the buyer’s own savings (not gifts), and completion of a HUD-approved homebuyer education course.
Can I use a first-time buyer program to buy a home in Beverly, Salem, or Swampscott?
Yes, if you meet income and purchase price limits for Essex County. Most MassHousing and ONE Mortgage purchase price limits cover the majority of the Beverly, Salem, Peabody, Lynn, and Danvers markets. Swampscott and Marblehead at higher price points may be above program limits for some properties. Your participating lender can confirm whether a specific property and price point qualifies.
How do I find a MassHousing-participating lender on the North Shore?
MassHousing publishes a directory of participating lenders on their website. Many North Shore banks and credit unions participate. Daniel Meegan can also refer buyers to lenders he’s worked with who have specific experience with MassHousing and ONE Mortgage financing on the North Shore.
More Massachusetts Buyer Resources
These guides cover related aspects of buying a home in Massachusetts:
- Steps to Buying a Home in Massachusetts — Complete step-by-step guide from pre-approval through closing
- Massachusetts Homestead Exemption — How to protect up to $500,000 of your home equity after closing
- Massachusetts Closing Costs Guide — What to budget for on the buyer side