Massachusetts has some of the most generous first-time buyer programs in the country. The problem: most buyers never use them. Either they don't know they exist, their lender doesn't offer them, or they assume they don't qualify without ever checking.
This guide covers the four programs that matter most for Massachusetts first-time buyers in 2026 — what they offer, who qualifies, and how they stack up against each other.
"First-time buyer" in Massachusetts means you haven't owned a primary residence in the past 3 years — not that you've never owned anything. If you owned a home 4+ years ago, you likely qualify for these programs.
The Programs
MassHousing Mortgage
MassHousing is a quasi-public agency that has financed over $27 billion in Massachusetts home loans since 1966. Their mortgage product offers below-market fixed rates, down payment assistance, and a unique "MI Plus" feature that pays your mortgage for up to 6 months if you lose your job.
MassHousing's DPA program provides up to $30,000 — or up to 5% of the purchase price — in down payment assistance. The assistance is a second mortgage at a low fixed rate, not a gift. You pay it back over time, but the rate is structured to keep total monthly payments manageable.
ONE Mortgage
ONE Mortgage is administered by MHP (Massachusetts Housing Partnership) in partnership with participating lenders. It's arguably the best first-time buyer loan in Massachusetts for qualifying buyers — below-market rates with no private mortgage insurance required at all.
The income limit is the binding constraint. At 80% AMI, most buyers in Greater Boston need to earn under roughly $90,000–$100,000 (varies by household size and county). Outside of Boston, limits are lower. ONE Mortgage is designed specifically for moderate-income buyers — not high earners who happen to be buying their first home.
For buyers who qualify, the combination of no PMI and below-market rates makes ONE Mortgage the lowest total-cost product in the Massachusetts market for first-time buyers.
FHA + Down Payment Assistance
Standard FHA loans (3.5% down, 580+ credit score) can be layered with Massachusetts DPA grants from programs like MassDREAMS, which provided up to $50,000 in forgivable assistance to buyers in specific communities hit hardest during COVID. MassDREAMS funding varies by availability — check current status with a participating lender.
This combination works best for buyers with credit scores in the 580–639 range who don't meet ONE Mortgage or MassHousing's score requirements. The MIP cost is real, but forgivable DPA can offset the out-of-pocket cost entirely.
USDA (for Eligible Towns)
If the home is in a USDA-eligible Massachusetts town, first-time buyers get $0 down with guarantee fees significantly lower than FHA MIP. No PMI equivalent. Income limits apply. See the full eligibility breakdown: Every USDA-eligible town in Massachusetts →
How to Choose
Run through this in order:
- Check ONE Mortgage first. No PMI and below-market rates make it the best deal in Massachusetts if you're under the income limit.
- If income is too high for ONE, look at MassHousing. Higher income limits, DPA available, and the job-loss protection is genuinely useful.
- If the property is in a USDA-eligible town, run a USDA comparison. $0 down beats 3% down for buyers who want to preserve cash.
- FHA + DPA fills in for buyers with lower credit scores or who need the most flexible underwriting.
Most buyers end up comparing 2–3 options with real numbers before deciding. The difference in monthly payment between ONE Mortgage and FHA on the same home can be $200–$400/month — worth the comparison.
Find out which programs you actually qualify for.
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