Fortunately, Massachusetts has programs that specifically support homebuyers. Among the most popular is down payment assistance, which reduces the amount of money you need to pay out of pocket for a down payment on your home. Today in the United States, down payment assistance helps many first-time homebuyers get their foot in the door, so to speak. As Michael Stegman of Duke University, observes, \u201cSaving for a down payment remains one of the biggest barriers to obtaining a home mortgage<\/a>,\u201d and in many cases, down payment assistance has become \u201cthe first rung on the homeownership ladder.\u201d<\/p>\n When it comes to buying a home, a little research goes a long way. As Shal Shahani<\/a>, of the Shahani Group told us, \u201cThe more preparation you do before your search, the better it will be.\u201d<\/p>\n We researched down payment assistance programs throughout Massachusetts and collected the results here to help you understand how to use these programs.<\/p>\n As we mentioned, Massachusetts is a highly desirable state. As of January 2022, the median listing price in the state was $665,000<\/a>.<\/p>\n To give you some context, in January 2022, the median listing price in the United States was $375,000<\/a>. That means the listing price of a home in Massachusetts is almost twice as high as the national average.<\/p>\n Any buyer should know their average costs, but it’s also important to remember that Massachusetts is a diverse state. It stretches from the Atlantic Ocean to upstate New York, and depending on where you want to buy, housing prices vary drastically.<\/p>\n Prices are typically highest in eastern Massachusetts, specifically in the Boston metro area. Both Boston and Cambridge host strong, stable housing markets, and you\u2019ll pay top dollar to live in either city. In February 2022, for example, the median home price in Cambridge was $970,000<\/a>.<\/p>\n Beyond the cities themselves, the Boston suburbs are also a popular location. Homes in the town of Newton, for example, regularly sold for $1.3 million<\/a> in February 2022.<\/p>\n Buyers should be aware that the Boston suburbs also have the highest property taxes in the state. Make sure to research your desired location\u2019s taxes before you begin to look at homes.<\/p>\n As you continue west through Massachusetts, prices typically become more modest. Central Massachusetts specifically hosts a number of college towns, which combine more affordable prices with the pleasures of a small community. In the town of Northampton \u2014 home to Smith College \u2014 you\u2019ll be looking at median home prices closer to $355,000 as of February 2022<\/a>.<\/p>\n Rural areas of Massachusetts are often the most affordable. In Oxford, for example, the median home price was around $350,000<\/a> in February 2022.<\/p>\n At the same time, buyers should be thoughtful about this state\u2019s rural housing market. Massachusetts is a popular place for second homes, and some locations \u2013 like Lenox \u2013 are rural, but still fairly expensive.<\/p>\n The minimum down payment for a conventional loan is 3%, but Massachusetts buyers typically offer more than that. As throughout the country, a 20% down payment will help you avoid mortgage insurance on your loan, and the more you can pay upfront, the more likely you are to get the home you want.<\/p>\n Let\u2019s put that in numbers. If you want to buy an average house in Massachusetts at $548,000 using a conventional loan, then you\u2019d need to save at least $16,440 (3% of the total price). If you wanted to hit the 20% threshold, you\u2019d need to save up $109,600 by the time you put up an offer.<\/p>\n Both public and private down payment assistance programs are available in Massachusetts. Several programs are run through the state government, but they are not the only options.<\/p>\n For example, some employers \u2014 especially universities \u2014 offer their employees down payment assistance to buy a home. So make sure you research all options when you begin the homebuying process.<\/p>\n Some down payment assistance programs provide grants. This is money that, provided you meet certain requirements, you do not need to repay. Alternatively, you may receive a low or non-interest loan, which likely will need to be repaid, though some are forgivable if certain conditions are met. The specific conditions of any down payment assistance will depend on the program.<\/p>\n When buying a home, everyone thinks about the down payment. But as Kevin Vitali<\/a>, who has 14 years of experience selling Massachusetts real estate, explained, \u201cMany first-time buyers don\u2019t account for their closing costs.\u201d<\/p>\n It’s important to remember closing costs when you purchase your first home. These include all expenses you\u2019ll need to pay as soon as you close the deal on your new home, not just the down payment.<\/p>\n Closing costs in Massachusetts can vary depending on your loan provider, but they will typically land between 1.5% and 4% of your total loan amount. So, if you buy a house in Massachusetts for $500,000, that amounts to between $7,500 and $20,000.<\/p>\n Common closing costs may include an underwriting fee, title insurance, flood determination, and more. The specific costs vary depending on your selected location. You should review these costs with your agent in advance; they\u2019ll be outlined on your Loan Estimate<\/a>, which you should receive from each lender. This way, you know you have it all covered.<\/p>\n Fortunately, some down payment assistance programs include support for closing costs. For example, the City of Worcester Down Payment Assistance Program<\/a> provides up to $5,000 to qualified residents for both a down payment and any closing costs. The City of Springfield also provides a forgivable, zero-interest loan<\/a> up to $4,000 that can be put toward a down payment or closing costs.<\/p>\n Make sure to research your specific program to make sure you make the best use of any money that is available to you.<\/p>\n Qualifications for down payment assistance will depend on the specific program you choose. We\u2019ve outlined\u00a0 the requirements for some of Massachusetts\u2019 most popular down payment assistance programs. Generally, here\u2019s what you can expect:<\/p>\n Below, we\u2019ve collected a list of down payment assistance programs available in Massachusetts. This list is not all-inclusive, but it will give you a good idea of what support you can expect as a first-time homebuyer.<\/p>\n The ONE Mortgage<\/a> is a 30-year fixed-rate loan for low-income and middle-income first-time homebuyers. Through this program, you can purchase anything from a condominium to a three-family unit, including a single-family house.<\/p>\n Requirements:<\/p>\n MassHousing offers a fixed-rate mortgage for first-time homebuyers<\/a>. Your desired home must be a condominium or a single-family to a four-family home.<\/p>\n This program includes MI Plus, which may cover the mortgage payment in the event of a job loss. MI Plus covers payments for as long as six months, up to $2,000 per month.<\/p>\n Requirements:<\/p>\n For first-time homebuyers, MassHousing\u2019s Workforce Advantage 2.0 program provides up to $25,000 in down payment assistance. You receive a fixed-rate MassHousing Mortgage and a down payment assistance loan with zero-percent interest. The payments on the loan are deferred until you sell or transfer ownership of the home, or until you pay off or refinance the first mortgage.<\/p>\n Requirements:<\/p>\n MassHousing offers down payment assistance<\/a> of up to $15,000 or 5% of the home\u2019s purchase price, whichever is less (note that Boston and Gateway cities buyers may qualify for up to $25,000). This program offers a 15-year loan with a 2% interest rate.<\/p>\n Requirements:<\/p>\n Income limits vary depending on where you want to purchase. If you want to buy in Boston or designated \u2018Gateway City,\u2019 then you can have a higher income and still receive assistance.<\/p>\n MassHousing\u2019s Operation Welcome Home<\/a> program offers a fixed-rate mortgage to military members and veterans. In addition to the mortgage, the program offers a closing cost credit up to $2,500, which can be combined with MassHousing down payment assistance.<\/p>\n Applicants to this program must be a member of the National Guard or Reserves, active-duty military, veterans, or Gold Star family members and meet income limit requirements.<\/p>\n This MassHousing loan<\/a> allows you to finance a house and renovation costs in one mortgage. The program is nearly the same as the MassHousing Mortgage, but with support for renovations. In order to qualify, you must have minimum rehabilitation costs of $10,000<\/a>. A home inspector or contractor can likely help you ballpark renovation costs.<\/p>\n![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2022\/03\/down-payment-assistance-in-massachusetts-2-666x381.png\")
<\/a>How much do you need to buy a house in Massachusetts?<\/h2>\n
The typical Massachusetts down payment<\/h2>\n
![\"Two](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2022\/03\/down-payment-assistance-in-massachusetts-3-666x381.png\")
<\/a>Types of down payment assistance available in Massachusetts<\/h2>\n
What about closing costs?<\/h3>\n
How do you qualify for down payment assistance?<\/h2>\n
Typical qualifications for down payment assistance in Massachusetts:<\/h3>\n
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![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2022\/03\/down-payment-assistance-in-massachusetts-4-666x381.png\")
<\/a>What down payment assistance program is right for you?<\/h2>\n
Massachusetts Housing Partnership ONE Mortgage<\/h3>\n
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MassHousing Mortgage<\/h3>\n
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MassHousing Workforce Advantage 2.0<\/h3>\n
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MassHousing Down Payment Assistance Program<\/h3>\n
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MassHousing Operation Welcome Home<\/h3>\n
MassHousing Purchase and Rehabilitation Loan<\/h3>\n