A Guide To First-Time Home Buyers Programs In MA

Are you a fan of successful professional sports teams? Do you like a myriad of exceptional seafood restaurants to choose from? Does the hustle and bustle of a vibrant city appeal to you? If the answer is yes to any or all of these questions, Massachusetts might be an ideal place for you to live, especially if you’re considering purchasing your first home.

Those new to home buying and thinking of moving to The Bay State may be able to get some assistance in the form of programs offered through MassHousing. Here, we’ll cover some of the basics of buying a house in Massachusetts, with a specific focus on programs for first-time home buyers in MA.

Purchasing A House In Massachusetts

Purchasing a home anywhere can seem like a daunting experience for first-time home buyers. This can be especially true in places where home prices are on the high side. The New England state can be pretty expensive, as there are many desirable places to buy a house in Massachusetts.

For example, the median home price in Boston is $769,824 and in Cambridge it’s $1,100,857, according to our September 2022 Housing Market reports. Those may not be exactly bargains for first-time home buyers, who typically have smaller budgets compared to repeat buyers.

Don’t let the higher prices scare you away, though. There are a number of programs that can help with costs. 

Massachusetts First-Time Home Buyer Programs

MassHousing and Massachusetts Housing Partnership (MHP) programs that assist first-time home buyers include education classes, mortgage assistance programs and loans. Let’s take a deeper look at each of these programs so you can decide if any of them are right for you.

MassHousing Home Buyer Education

MassHousing helps walk you through the first-time home buying process to take all the guesswork out of your journey. This includes understanding how much house you can afford, how your credit and other factors affect your ability to buy a home, and how to complete the process as efficiently as possible. A group of real estate industry experts and agencies provide invaluable information that will save you time and money.

MassHousing Home Loans

Part of your Massachusetts home buying education includes learning about the various MassHousing mortgage programs you can take advantage of through an approved lender. These loans feature down payment assistance, competitive rates, attractive terms, and even come with insurance that protects you in case you suffer a loss of income. This means you can save money in the beginning and over the course of the loan while at the same time getting some peace of mind that you will be covered if bad fortune strikes.

MassHousing Down Payment Assistance

Saving for a down payment on a home can be a barrier for many home buyers, especially when it’s their first house. MassHousing offers $30,000 in down payment assistance for qualifying buyers no matter where you’re buying your first home in Massachusetts. In addition, they offer up to $50,000 in some select locations. To qualify, you must earn less than $179,955 per year and be purchasing a single-family home, condominium or 2 – 4-person family property in Massachusetts that will serve as your primary residence.

MassHousing Closing Credit For Veterans And Service Members

In addition to these programs, those serving in the National Guard or Reserves, active-duty military, veterans and Gold Star Families may be able to get up to $2,500 in closing cost credit.

Massachusetts Housing Partnership ONE Mortgage

Offered by the MHP, ONE Mortgage is a loan option for low- to moderate-income, first-time home buyers. The 30-year fixed mortgage has a minimum down payment requirement of 3% and no private mortgage insurance (PMI) is required. Those in need may also receive extra financial assistance. To qualify for this loan, you’ll need a credit score of at least 640 and live in the property as your primary residence. Your income must also fall below the program limits.

Additional Loan Types For First-Time Home Buyers In MA

FHA Home Loans

Another option to consider when buying your first home, no matter the location, is an FHA loan. These loans are backed by the Federal Housing Administration (FHA), a part of the U.S. Department of Housing and Urban Development (HUD). 

The goal of FHA loans is to make purchasing a house for low- to moderate-income home buyers more affordable. This is achieved by offering credit score, income and down payment requirements that may be less restrictive than conventional loans.

For example, the down payment requirement for FHA loans is only 3.5% and borrowers can have a credit score as low as 500, in some cases – though some lenders, like our sister company Rocket Mortgage®, require a 580 credit score. FHA loans aren’t exclusive to borrowers in Massachusetts, but they can certainly help you buy a home there.

VA Home Loans

Active service members, veterans, and eligible surviving spouses may qualify for VA loan programs. Backed by the U.S. Department of Veterans Affairs (VA), these loans offer favorable terms and require no down payment.

Key benefits of a VA loan include no requirement for private mortgage insurance (PMI), limited closing costs and low interest rates compared to most other loans.

USDA Home Loans

Depending on where you’re looking to purchase a home, USDA loans might be a good option to consider as well. Backed by the U.S. Department of Agriculture (USDA), these loans are geared toward making homeownership more affordable for qualifying borrowers purchasing property in designated rural areas of the country.

They offer low interest rates, no down payment, and backing from the federal government – just to name a few of the benefits. However, they are a bit restrictive when it comes to which borrowers can qualify.

If your income is 80% or less than the median income per household in the area you’re looking for a home, you may qualify. USDA loans are also restrictive to very specific areas of the country.

The Bottom Line

From big city living to serene properties on the water, buying your first home in Massachusetts can be a great decision no matter what your specific tastes are. If the areas you like seem a bit out of budget, consider some of the loans and borrower assistance programs outlined here. Ready to get moving? Start the approval process with Rocket Mortgage today!