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Massachusetts First-Time Home Buyer Programs 2025

Massachusetts offers some of the most generous first-time buyer programs in the country — including up to $50,000 in grants. Here is everything you need to know.

8 min read·Updated April 2025·By the USA Realtor Editorial Team

Buying your first home in Massachusetts is a major milestone — and the state has built a robust safety net to help you get there. Unlike most states, Massachusetts offers multiple stacked programs that can dramatically reduce or even eliminate your down payment.

The key programs in 2025 include MassHousing (up to $30,000), Mass DREAMS (up to $50,000 for first-generation buyers), the ONE Mortgage Program (3% down, no PMI), and the STASH matched savings program. Here is a complete breakdown of each.

2025 Program Comparison

MassHousing Down Payment Assistance

Up to $30,000
Type

Deferred loan (forgiven after 10 years)

Min Down Payment

3%

Income Limit

Varies by county (~$175K–$225K)

Who Qualifies

First-time buyers purchasing a primary residence in MA

Mass DREAMS

Up to $50,000
Type

Grant (no repayment required)

Min Down Payment

0% (grant covers down payment)

Income Limit

≤ 100% of Area Median Income

Who Qualifies

First-generation buyers (parents never owned a home)

ONE Mortgage Program

No assistance cap
Type

Below-market rate mortgage, no PMI

Min Down Payment

3%

Income Limit

Varies by county

Who Qualifies

First-time buyers who complete a homebuyer education course

STASH Program

Up to $20,000
Type

Matched savings grant

Min Down Payment

Your savings + match

Income Limit

Varies by program

Who Qualifies

First-generation buyers who save through MassHousing

MassHousing: The Most Widely Used Program

MassHousing is Massachusetts's state housing finance agency and the most commonly used first-time buyer program in the state. It offers two key benefits: a below-market interest rate mortgage and down payment assistance of up to $30,000.

The down payment assistance comes as a second mortgage that is deferred — meaning you make no monthly payments on it. After 10 years of on-time payments on your primary mortgage, the assistance is forgiven entirely.

Income and purchase price limits apply and vary significantly by county. In Suffolk County (Boston), the income limit for a 1–2 person household is approximately $225,000. In Worcester County, it drops to around $175,000. You can check current limits at MassHousing.com.

Mass DREAMS: Up to $50,000 for First-Generation Buyers

The Mass DREAMS (Down payment for Racial Equity and Attainable Massachusetts Homes) program is one of the most generous housing grants in the country. It provides up to $50,000 to first-generation buyers — meaning neither you nor your parents have ever owned a home.

Unlike MassHousing's deferred loan, Mass DREAMS money is a true grant that does not need to be repaid as long as you remain in the home for five years. For buyers who qualify, this is often the single most impactful program available.

Mass DREAMS is income-restricted to households at or below 100% of the Area Median Income for their county. It can be combined with a MassHousing mortgage for maximum benefit.

The ONE Mortgage Program: 3% Down, No PMI

The ONE Mortgage Program is designed for moderate-income first-time buyers who want a straightforward, affordable mortgage without private mortgage insurance (PMI). PMI typically adds $100–$250 per month to your mortgage payment when you put less than 20% down — the ONE program eliminates this cost.

To qualify, you must complete an approved homebuyer education course, meet income limits, and purchase a one- to three-family property as your primary residence. The 3% down payment can come from savings, gifts, or other assistance programs.

Frequently Asked Questions

What first-time home buyer programs are available in Massachusetts?

Massachusetts offers several programs including MassHousing (up to $30,000 down payment assistance), Mass DREAMS (up to $50,000 for first-generation buyers), and the ONE Mortgage Program with a 3% down payment requirement.

What is MassHousing and how does it work?

MassHousing is a Massachusetts state agency that offers affordable mortgage loans and down payment assistance of up to $30,000 for first-time home buyers who meet income and purchase price limits.

What is the income limit for MassHousing in 2025?

MassHousing income limits vary by county. In Greater Boston, limits are typically $175,000–$225,000 for a household of 1–2 people. Rural areas have lower limits. Check MassHousing.com for current limits by county.

How much down payment do I need to buy a house in Massachusetts?

With first-time buyer programs, as little as 3% down is required. The ONE Mortgage Program requires just 3% down with no PMI. FHA loans require 3.5% down. With MassHousing down payment assistance, you may cover your entire down payment.

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