Overview
Massachusetts is one of the country's priciest markets, with a typical home value around $655,000 statewide and single-family homes in Greater Boston now topping $1 million. For first-time buyers, the challenge isn't subtle: even a strong income struggles against the down payment math here. That's why state-backed help matters so much. MassHousing, the state's affordable-housing bank, pairs below-market mortgages with substantial down payment assistance, and the Massachusetts Housing Partnership's ONE Mortgage offers a low-down, no-PMI path, together they can be the difference between renting indefinitely and owning.
MassHousing's Down Payment Assistance is a second mortgage of up to $30,000 for first-time buyers, and crucially it carries no monthly payment when structured as a 0% deferred loan, you repay the balance only when you sell, refinance, or pay off your first mortgage. The structure scales with income: buyers at or below 60% of area median income can access up to $30,000 at 0% deferred, while those up to 80% AMI can take up to $25,000 as a 2% loan amortized over 15 years. MassHousing also ran a limited-time enhancement offering $25,000 at 0% interest for loans locked between April 27 and July 31, 2026.
State Programs
MassHousing Down Payment Assistance (DPA)
Second mortgage: 0% deferred (no monthly payment) or 2% amortizing over 15 yearsONE Mortgage
State-subsidized 30-year fixed first mortgage, 3% down, no PMIONE+ Boston
ONE Mortgage plus down payment/closing-cost assistance and interest-rate buydownsCity of Boston First-Time Homebuyer Program
Down payment assistance (second mortgage)Federal Programs Available in Massachusetts
These nationwide programs can be combined with Massachusetts state assistance for maximum benefit.
FHA Loan Program
Low down payment mortgageVA Home Loan
Zero down payment mortgageUSDA Rural Development Loan
Zero down payment mortgageTips for First-Time Buyers in Massachusetts
The other pillar is the ONE Mortgage, a state-subsidized 30-year fixed loan requiring as little as 3% down with no private mortgage insurance, a structure that saves low- and moderate-income buyers hundreds a month versus a conventional loan. In Boston, the ONE+ Boston program layers up to $50,000 in down payment and closing-cost assistance and interest-rate buydowns on top of the ONE Mortgage for income-eligible city residents (income limits run roughly $114,250 for a single buyer up to about $171,400 for a four-person household). You complete an approved homebuyer education course and pair the assistance with the subsidized first mortgage.
Massachusetts keeps income tax simple with a flat 5% rate, but there's an important wrinkle: a 4% surtax applies to taxable income above $1,107,750 (the 2026 inflation-adjusted threshold), making the top combined rate 9% on income over that line. To be clear, the surtax is 4%, not 9%, only earnings above roughly $1.1 million get the extra 4%, so virtually all first-time buyers pay the flat 5%. Property taxes average about 1.14% effective, so a $655,000 home runs roughly $7,500 a year, though rates vary widely by town. Many cities, including Boston, offer a residential exemption that meaningfully lowers the bill on owner-occupied homes.
Local programs are a real strength here. Beyond ONE+ Boston (up to $50,000), the City of Boston's First-Time Homebuyer Program offers 3% of the purchase price up to $50,000 for households under 100% AMI, and many Gateway Cities run their own assistance, so ask a participating lender what's available where you're buying. Military buyers near Hanscom Air Force Base or the Natick Soldier Systems Center can combine these with a VA loan. To start, take a state-approved homebuyer education class (required for these programs), connect with a HUD-approved housing counselor, and work with a MassHousing- or ONE Mortgage-participating lender to lock in your assistance tier.
Frequently Asked Questions
For educational purposes only -- not financial or tax advice. Program details, eligibility requirements, and benefit amounts are subject to change. Verify all information directly with the administering agency before applying. Last verified: June 15, 2026.