Are There Grants for Massachusetts First-Time Homebuyers? Are There Grants for Massachusetts First-Time Homebuyers?
Over the past few years, a lot of grant and downpayment assistance money has become available to first-time homebuyers to help combat rising interest rates and housing prices.
In the blog below, we've summarized some of the more common programs available to Massachusetts first-time homebuyers -- some of which are on the city level, some available to homebuyers across the Commonwealth, and some available at the federal level. It's important to note that some of these programs and grants are stackable, meaning multiple can be used toward the same loan.
The income limits are often based on household income (number of household members and total income they generate), and in most cases grant funds can cover down payment and closing costs which can help reduce the amount of money mortgage clients owe at the time of closing. Let's dive in!
Quicklinks:
- City of Boston First-Time Homebuyer Program
- MassDREAMS Grant and MassHousing Down Payment Assistance
- Federal Home Loan Bank of Boston Equity Builder Program
- Federal Home Loan Bank of Boston Housing Our Workforce Program
- Massachusetts Affordable Housing Alliance STASH Program
- My Mass Home Workforce Advantage Program
- One+Boston
- FHLB Grant Programs (EBP & HOW)
City of Boston First-Time Homebuyer Program
The City of Boston First-Time Homebuyer Program provides income-eligible homebuyers with a grant that can be used toward their down payment.
For qualified households, the grant amount is five percent of the purchase price (maximum of $50,000 for with those with income less than 100 percent of AMI, maximum of $35,000 for those with income between 101 and 135 percent of AMI), plus closing costs if applicable.
To qualify for this program you'll need to buying a one-to-three family residential property or condominium in Boston that will serve as your primary residence. You'll also need to meet the following requirements:
- Be a first-time homebuyer (you haven't owned a property in the past three years)
- Graduate from the City of Boston's Homebuying 101 class
- Get a first mortgage pre-approval from one of Boston's participating mortgage lenders like Leader Bank (mortgage loan must adhere to the Fannie Mae general loan limits)
- Have a household income less than 135 percent of AMI
- Have assets less than $75,000
Visit the City of Boston's website to learn more about how to apply for this program.
MassDREAMS Grant and MassHousing Down Payment Assistance
While this popular program is not currently accepting new applications as it has committed all available funds, it is expected to return in April 2024 with similar stipulations to last year's program. Eligible homebuyers receive a grant of up to $50,000 to be used toward 5% of their home's purchase price, closing costs, and pre-payments.
MassDREAMS is made possible by federal funding from the American Rescue Plan Act of 2021, which provides assistance to states to mitigate the economic effects of the pandemic and is available to homebuyers who meet the program's eligibility criteria and currently live in one of the 29 communities that were disproportionately impacted by the COVID-19 pandemic including Attleboro, Barnstable, Boston, Brockton, Chelsea, Chicopee, Everett, Fall River, Fitchburg, Framingham, Haverhill, Holyoke, Lawrence, Leominster, Lowell, Lynn, Malden, Methuen, New Bedford, Peabody, Pittsfield, Quincy, Randolph, Revere, Salem, Springfield, Taunton, Westfield and Worcester.
The good news is that MassHousing continues to offer down payment assistance of up to $50,000 for eligible homebuyers in 29 select communities, and up to $30,000 in every city and town in Massachusetts. Visit MassHousing's website to learn more about whether you might be eligible for this assistance.
Federal Home Loan Bank of Boston Equity Builder Program
The Federal Home Loan Bank of Boston Equity Builder Program offers grants to help first-time buyers earning up to 80% of the area median income with down-payment, closing cost, and home rehabilitation assistance, and homebuyer education and counseling. Eligible applicants can receive grants of up to $29,000 with a minimum borrower contribution of $500. Visit the FHLBank of Boston's website for more details on the program.
Federal Home Loan Bank of Boston Housing Our Workforce Program
The Federal Home Loan Bank of Boston Housing Our Workforce (HOW) Program provides down-payment and closing cost assistance to homebuyers earning more than 80% and up to 120% of the area median income. Through HOW, grants are made to eligible borrowers when they close on mortgages with participating member financial institutions. Eligible borrowers can receive grants of up to 10% of the purchase price of a home up to $25,000 with a minimum borrower contribution of 3% of purchase price. Visit the FHLBank of Boston's website for more details on the program.
Massachusetts Affordable Housing Alliance STASH Program
The Massachusetts Affordable Housing Alliance (MAHA) STASH Program is a first in the nation matched savings program for first-generation first-time homebuyers in Massachusetts. This program focuses on financial literacy topics that are essential to the homebuying journey. STASH First-Gen Home equips graduates with confidence, knowledge, and resources to make informed choices about buying their first home. A cohort of participants is led through 8 seminar topics ranging from SMART goal setting for homeownership, establishing good saving habits, building a budget, managing credit, consumer rights, estate planning and more; all of which are essential to preparing for the home buying process and sustaining homeownership.
To qualify for the STASH Program you must:
- Be a first-generation first-time homebuyer
- Be a graduate of MAHA's (or another CHAPA approved) first-time homebuyer class
- Earn 100% of area median income and below for each household (”household” income limit cannot exceed 100% AMI based on household size and county in which you currently live)
- Earn a minimum household income of $45,000 per year
- Must be mortgage ready, meaning:
- A minimum credit score of 640 and less than two adverse issues on credit report
- Savings minimum of $3,000 with the capacity to save an additional $2,000 within 6 months, or savings of $5,000
For more information on the program's qualifications, visit the Massachusetts Affordable Housing Alliance website.
My Mass Home Workforce Advantage Program
The My Mass Home Workforce Advantage Program offers eligible first-time homebuyers down payment assistance of up to $50,000 and other benefits to help increase buying power for working families. The Workforce Advantage Program is available to first-time homebuyers who:
- Earn up to 80% of the Area Median Income (AMI) with income certification required by MassHousing for total household income
- Purchase a single-family home, condominium, or two-family property in Massachusetts
For more details on the Workforce Advantage Program and qualification details, visit the My Mass Home website.
One+Boston
One+Boston combines City of Boston funds with the affordable features of ONE Mortgage to increase the buying power for income-eligible, first-time Boston homebuyers purchasing a home within Boston.
ONE+Boston benefits include:
- Heavily discounted, fixed, 30-year interest rates
- Enhanced down-payment assistance through the City of Boston
- No private mortgage insurance required
- Additional financial assistance for eligible buyers
For more details on the ONE+Boston program qualifications, visit the ONE+Boston website.
FHLB Grant Programs (EBP & HOW)
For the second year, Leader Bank has been approved by the Federal Home Loan Bank of Boston (FHLB) to offer both the Equity Builder Program Grant and the Housing Our Workforce Grant to our clients!
The Equity Builder Program (EBP) & Housing Our Workforce (HOW) offer grants to help New England, first-time, primary residence buyers with down-payment, closing cost assistance, and homebuyer education counseling. Using compliance income calculations, EBP is available to households earning up to 80% of the area median income and HOW up to 120%. Both EBP and HOW are Grants (not loans) that are fully forgivable as long as they are kept for 5 years.
Clients are able to layer and pair these programs with other (non-FHLB) grants and down payment assistance programs. There is no monthly payment, they can be subordinated, and are not lien sensitive.
Visit the Federal Home Loan Bank of Boston (FHLB) website to learn more - https://www.fhlbboston.com/fhlbank-boston#/
If you have any questions about whether you qualify for any of these programs, don't hesitate to reach out to one of Leader Bank's expert Loan Officers for help! We also have a library of educational resources available to help first-time homebuyers navigate the homebuying process from pre-approval to closing.
