First-time home buyer programs in Massachusetts: assistance, loans and real costs
Massachusetts’s ONE Mortgage is one of the few state programs that eliminates PMI outright for first-time buyers, which on a $640,000 median home can be worth more than a cash grant over the first several years. Everything else on this page — the agency programs, the tax credit, the closing costs — sits on top of that fact.
| State housing agency | MassHousing and the Massachusetts Housing Partnership |
|---|---|
| Median home price (approx.) | $640,000 — statewide order of magnitude; metros differ |
| 3.5% / 5% / 20% down | $22,400 / $32,000 / $128,000 on the median |
| Property tax (effective) | about 1.14% — roughly $7,296 a year on the median |
| Mortgage credit certificate | Not consistently offered — ask a lender |
| Transfer tax | Massachusetts charges deed excise stamps of $4.56 per $1,000 (0.456%; higher in Barnstable County and on Nantucket and Martha’s Vineyard, which add land bank fees), paid by the seller. |
State programs for first-time buyers in Massachusetts
MassHousing offers first mortgages with MassHousing Down Payment Assistance, and the Massachusetts Housing Partnership’s ONE Mortgage provides a discounted-rate, low-down-payment loan with no PMI for first-time buyers. Boston and several Gateway Cities add their own programs, and homebuyer education through CHAPA-certified agencies is required.
The down payment help, and how it must be repaid
MassHousing DPA provides up to 10% of the price, capped at a fixed dollar amount (larger in Boston and the Gateway Cities than elsewhere), as a 15-year second mortgage at a low fixed rate; ONE Mortgage substitutes a publicly funded interest subsidy and no PMI for cash assistance.
A second-lien assistance loan has consequences at refinance — it usually must be repaid or subordinated — and a forgivable one repaid early loses its forgiveness. Plan the holding period accordingly. See how down payment assistance programs work.
The MCC: a federal tax credit for the life of the loan
Massachusetts does not operate a Mortgage Credit Certificate program; ask a MassHousing or ONE Mortgage lender about other subsidies.
Who qualifies: income, price and credit limits
MassHousing income limits vary by community (higher in Boston and its suburbs) and purchase price limits apply; ONE Mortgage caps income at 100% of area median. Minimum credit scores start around 640 and first-time buyer status is required for ONE Mortgage.
What closing costs look like in Massachusetts
Massachusetts charges deed excise stamps of $4.56 per $1,000 (0.456%; higher in Barnstable County and on Nantucket and Martha’s Vineyard, which add land bank fees), paid by the seller.
Massachusetts buyers face attorney and title fees, lender fees and prepaids — roughly 2% to 3% of the price — while the deed excise falls on the seller; a buyer’s attorney is customary. For the line-by-line, see closing costs explained and seller concessions limits.
Example: $640,000 home, three ways to finance it
On a home at Massachusetts’s rough median of $640,000, here is what the three standard first-time structures look like at an illustrative 6.5% rate — principal and interest only, before homeowners insurance and any mortgage insurance. The tax column uses the state’s approximate effective rate of 1.14% (about $7,296 a year on this price). Neither number is an offer; both are the right order of magnitude for a budget.
| Structure | Down payment | Loan amount | P&I at 6.5% (30 yr) | Property tax / mo (est.) |
|---|---|---|---|---|
| FHA, 3.5% down | $22,400 | $617,600 | $3,904 | $608 |
| Conventional, 5% down | $32,000 | $608,000 | $3,843 | $608 |
| Conventional, 20% down (no PMI) | $128,000 | $512,000 | $3,236 | $608 |
Illustrative rate and approximate state figures — not an offer or a quote. Full payment tables cover $150,000 to $800,000 at 5% to 8%; the affordability guide explains how lenders size the loan.
Frequently asked questions
Does Massachusetts have down payment assistance for first-time buyers?
MassHousing DPA provides up to 10% of the price, capped at a fixed dollar amount (larger in Boston and the Gateway Cities than elsewhere), as a 15-year second mortgage at a low fixed rate; ONE Mortgage substitutes a publicly funded interest subsidy and no PMI for cash assistance. The agency publishes the current limits and amounts; a lender approved for the program will know them.
Is there a first-time home buyer tax credit in Massachusetts?
Massachusetts does not operate a Mortgage Credit Certificate program; ask a MassHousing or ONE Mortgage lender about other subsidies. A Mortgage Credit Certificate is a federal income tax credit, claimed each year on your return, not cash at closing.
What are typical closing costs when buying a house in Massachusetts?
Massachusetts buyers face attorney and title fees, lender fees and prepaids — roughly 2% to 3% of the price — while the deed excise falls on the seller; a buyer’s attorney is customary. Massachusetts charges deed excise stamps of $4.56 per $1,000 (0.456%; higher in Barnstable County and on Nantucket and Martha’s Vineyard, which add land bank fees), paid by the seller.
Related guides
- Earnest money explained: how much, who holds it, and how you lose it
- Appraisal gap: what happens when the home appraises below your offer
- Down payment assistance programs: how they work and how to find yours
- How much house can I afford? The math lenders actually use
More on Massachusetts: hard money rules in Massachusetts · foreclosure in Massachusetts.