MA Housing Agency's Expanded First-Time Homebuyer Program Could Be A Salve Amid Record-High Market

MASSACHUSETTS — First-time homebuyers in Massachusetts are staring down a market that's never been more expensive. State officials, recognizing the problem, have extended a relative olive branch to help make the process of getting into a home slightly more reasonable.

MassHousing announced today the expansion of the agency's Down Payment Assistance (DPA) mortgage program. MassHousing’s expanded DPA program now offers up to $25,000 in down payment assistance to all income-eligible first-time homebuyers when purchasing a first home in any city or town in Massachusetts.

The move means that MassHousing now offers the largest statewide homebuyer assistance program in Massachusetts for moderate- and middle-income homebuyers, officials said.

"Down payment assistance is a vital tool for empowering first-time homebuyers and advancing MassHousing’s commitment to expanding access to homeownership," said MassHousing CEO Chrystal Kornegay. "By growing our leading down payment assistance program to reach more middle-income homebuyers statewide, we will grow consumer buying power and help ensure that homeownership remains accessible to working families across Massachusetts."

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MassHousing down payment assistance financing of up to $25,000 was previously available statewide to new homebuyers earning under 80 percent of the area median income, while new middle-income homebuyers earning more than 80 percent of the area median income could access down payment assistance only when buying a new home in a Gateway City, Boston and Randolph.

The agency’s new, expanded down payment assistance program retains DPA access for moderate-income homebuyers while removing geographic restrictions for middle-income residents. These changes create the largest statewide DPA platform in Massachusetts serving low-, moderate- and middle-income homebuyers.

In eastern Massachusetts, including Essex, Middlesex, Norfolk, Plymouth and Suffolk Counties, MassHousing's statewide DPA is now available to first-time homebuyers earning up to $205,335. Income limits are $165,645 in Worcester County, $160,650 in Hampshire County and $129,870 in Hampden County.

MassHousing DPA is only available to qualified first-time homebuyers utilizing a MassHousing first mortgage to purchase a home.

Over the past five years, MassHousing has provided nearly $3 billion in first-mortgage financing to roughly 9,800 low-, moderate- and middle-income Massachusetts households. MassHousing has also provided over $122 million in down payment assistance to 6,300 new first-time homebuyers during that time, officials said.