Massachusetts first-time buyers have two state-backed options

Massachusetts first-time homebuyers have two major state-supported paths. MassHousing can provide as much as $30,000 for the initial purchase expense. The assistance is a second loan with 0% interest and postponed payments. The balance becomes due after a sale, refinancing or payoff of the primary mortgage. Eligible properties statewide include condominiums, one-family houses and owner-occupied buildings with 2- to 4 units.

MHP’s ONE Mortgage takes a different approach. Buyers may put down 3%, avoid PMI and receive a fixed interest rate. A state-funded rate subsidy is available when household income does not exceed 100% of the area median. Both programs are obtained from participating private lenders. For MassHousing, that lender also selects the assistance option and determines the amount. Approved organizations provide required buyer education, including MAHA’s Homeownership University. Income ceilings and minimum credit standards can affect eligibility, so the available program depends on the applicant, location and purchase.