What government programs are currently available for buying a home?
That’s a great request! The resources available in Massachusetts are robust and often have generous terms.
Here are the major government-backed programs available for buying a home in Massachusetts, focusing on state and local resources first, followed by federal options.
🍎 Massachusetts-Specific Homebuyer Programs
The primary entities offering assistance are MassHousing (the state’s housing finance agency) and the Massachusetts Housing Partnership (MHP).
- MassHousing Mortgage Programs & Down Payment Assistance (DPA)
MassHousing offers affordable, fixed-rate loans that are essential for accessing their DPA options.
- MassHousing Mortgage: A 30-year fixed-rate mortgage with competitive rates. A unique feature is MI Plus, a free mortgage insurance benefit that helps pay your mortgage (up to $\$2,000$ per month) for up to six months if you lose your job.
- MassHousing DPA: This assistance must be paired with a MassHousing Mortgage. The amount varies based on income:
- Up to $\$30,000$: For borrowers with household incomes below $60\%$ of the Area Median Income (AMI). This is typically a $0\%$ interest deferred loan (no monthly payments).
- Up to $\$25,000$: For borrowers with household incomes between $60\%$ and $135\%$ of AMI, structured as a low-interest second mortgage.
- Operation Welcome Home: A specialized loan program providing affordable financing and DPA for eligible veterans, active-duty military, National Guard, and Gold Star Families.
- MHP’s ONE Mortgage Program
This is the state’s most affordable first-mortgage program for low- and moderate-income first-time homebuyers.
- Key Features:
- A competitive, fixed-rate 30-year loan.
- Low Down Payment: As little as $3\%$ down (for a single or two-family home).
- No Private Mortgage Insurance (PMI): This can save you hundreds of dollars monthly.
- Can be combined with local down payment assistance programs.
- Local City Programs (Example: Boston)
If you are buying in a major city, check for hyper-local programs. For example, the City of Boston offers:
- ONE+Boston Homebuyer Program: Offers significantly discounted fixed interest rates, which are even lower than the already reduced MHP ONE Mortgage rates, combined with enhanced DPA.
- First-Time Homebuyer Program (Grant): Provides a down payment grant of up to $$50,000 for first-time buyers purchasing in the City of Boston, depending on income.
🇺🇸 Major Federal Home Loan Programs
These programs are available nationwide and can be used in Massachusetts, often in conjunction with state DPA programs.
| Program | Managed By | Best For | Key Benefits |
| FHA Loans | Federal Housing Administration (HUD) | First-time buyers, or those with lower credit scores. | Lower minimum down payment (as low as $3.5\%$) and more flexible credit requirements. |
| VA Loans | Department of Veterans Affairs (VA) | Eligible veterans, active-duty service members, and surviving spouses. | Zero down payment and typically no Private Mortgage Insurance (PMI). |
| USDA Loans | U.S. Department of Agriculture | Buyers in eligible rural or suburban areas with low-to-moderate incomes (check eligibility by address). | Zero down payment for qualifying borrowers. |
| Conventional Loans (Fannie Mae/Freddie Mac) | Private Lenders (backed by government-sponsored entities) | Buyers with good credit and stable income. | Standard loans that can require as little as $3\%$ down payment for first-time buyers. |
Next Steps
- Homebuyer Education: Nearly all state and local Massachusetts programs require completing an approved Homebuyer Education Course as a first step.
- Contact a Participating Lender: You cannot apply directly to MassHousing or MHP. You must contact a MassHousing or MHP ONE Mortgage participating lender. They are trained to know all the available state and federal programs.
💡 Finding a participating lender is crucial, as they are the only ones who can originate the state-specific loans like the MassHousing and ONE Mortgage programs.
Here is a summary of how to find and choose a participating lender in Massachusetts:
🏦 How to Find MassHousing and MHP Participating Lenders
Both MassHousing and the Massachusetts Housing Partnership (MHP) ONE Mortgage program work through a network of approved private lenders (banks, credit unions, and mortgage companies).
The best approach is to visit their official websites for the most current and comprehensive lists:
- For MassHousing Mortgages and DPA:
- MassHousing partners with over 80 lenders across the state.
- You can search on their official site, where they often list their top-producing lenders who are highly experienced with their programs. These lists typically include banks like Eastern Bank, Salem Five Mortgage, Guild Mortgage, and numerous credit unions.
- For MHP ONE Mortgage and ONE+ Programs:
- MHP partners with over 40 lenders.
- Their website also provides a “Find a Lender” tool where you can often search by region or view the contact information for individual loan officers who specialize in the ONE Mortgage family of products.
🔍 Key Lenders to Look For
Many major local and national lenders are approved for both programs. When you call, always ask to speak with a loan officer who is experienced with MassHousing and the ONE Mortgage programs.
Here are a few examples of financial institutions listed as active partners for these programs:
- Banks/Mortgage Companies:
- Eastern Bank
- Rockland Trust Company
- Salem Five Mortgage
- Guild Mortgage
- Total Mortgage Services
- Fairway Independent Mortgage Corp.
- Local/Community Banks & Credit Unions:
- Cambridge Savings Bank
- Dedham Savings
- Metro Credit Union
- Needham Bank
✅ Next Steps
I highly recommend you contact at least three different participating lenders. This allows you to:
- Compare Interest Rates: Rates can vary between different partner lenders.
- Find the Best Fit: Look for a loan officer who is responsive and clearly explains the program requirements, as these loans have specific guidelines.
- Get Pre-Approved: The lender will determine your eligibility for the state and federal programs (like FHA, VA, or Conventional) and provide you with a pre-approval letter, which is essential for shopping for a home.
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