National First-Time Homebuyer Loans
- FHA Loans – FHA home loans are very popular with first-time homebuyers cause they require a 580 credit score with just a 3.5% down payment. Debt-to-income ratios up to 50% are allowed making them perfect for low-income borrowers.
- Conventional Loans – Conventional loans require a 620 credit score and a 5% to 20% down payment. If you put 20% or more down, mortgage insurance will not be required.
- USDA Loans – USDA mortgage loans are for low-to-median income borrowers buying a home located in a USDA-eligible rural area. They provide 100% financing with a 620 or higher credit score. Mortgage insurance is required but the rate is the lowest of any type of mortgage program available.
- VA Loans – Veterans of the U.S. military may be eligible for a VA home loan. No down payment or mortgage insurance is required and veterans with a 580 to 620 credit score are eligible.
- HomeReady and Home Possible Loans – Freddie Mac and Fannie Mae created the HomeReady and Home Possible loan programs for low-income first-time homebuyers whose income does not exceed 100% of the area median income requiring just a 3% down payment and a 620 credit score.
Offered by Massachusetts Housing Partnership (MHP) and designed specifically for low- and moderate-income first-time homebuyers, the ONE Mortgage offers consumers the comfort of knowing their mortgage is financially sustainable.
- Discounted 30-year fixed interest rate. No points are charged to the homebuyer.
- Low Down Payment – A minimum of 3% of the purchase price for a single-family property, condominium or two-family property. If purchasing a three-family property, the minimum down payment requirement is 5% of the purchase price.
- No Private Mortgage Insurance (PMI)
- Interest Subsidy – Income eligible buyers may also qualify for subsidized payment in the initial years of ownership.
- Long-term Affordability – This unique blend of discounted, fixed-rate private financing and state support lowers a homebuyer’s monthly mortgage payment by about twenty percent.
- Asset Building – There is no limit on appreciation with the ONE Mortgage Program.
To qualify for the ONE Mortgage, borrowers must:
- Meet income and asset limit guidelines
- Meet a minimum downpayment requirement (3% for condo, single-family, or two-family property)
- Be a first-time homebuyer
- Meet credit and underwriting requirements
- Property must be your primary residence through the term of the loan
- Complete a homebuyer education course
Mass Housing Loan
More than 50,000 families have used a simple, straightforward MassHousing loan to buy their first home.
With a loan from MassHousing, you’ll get
- Affordable interest rates, fixed for the life of the loan
- Mortgage payment protection, which helps pay your loan in case you lose your job
- No hidden fees or other surprises
- Low-and no-downpayment options
- Flexible underwriting and income limits mean more families qualify
- Loans serviced by MassHousing. If you have a question or concern, you’ll know who to call
To qualify for a MassHousing Loan, borrowers must
- Meet income guidelines
- Purchase a condominium, single-family, 2, 3, or 4-family property
- Have good credit
- Complete a homebuyer education course, if you are a first-time homebuyer or purchasing a multi-family property
A MassHousing Mortgage with Rehabilitation can help you purchase and rehabilitate a property, or refinance and rehabilitate your current home.
How to Apply
To obtain a MassHousing Mortgage with Rehabilitation, borrowers must meet income limits, which vary by city or town.
Up to 75% of the ”as completed” appraised value of the property can be financed toward renovation costs.
Available on 1-to-4-family properties
A MassHousing Mortgage with Rehabilitation features low-and no-down-payment requirements. Down payment and closing cost assistance can be used in partnership with this program.
- The minimum rehabilitation amount is $10,000 for all property types.
- Rehabilitation costs include the amount required to pay for the repairs, as well as other allowable expenses:
- Inspection fees
- Title update fees
- Required contingency reserve equal to 10% of the total rehabilitation cost.
MassHousing has expanded its Down Payment Assistance Program to empower first-time homebuyers in Massachusetts!
- Increased Assistance: MassHousing now provides down payment assistance for up to 5% of the purchase price or $15,000, whichever is less
- More Property Types: Single-family homes, condominiums, and 2-, 3- or 4-family properties are now eligible
- Higher Income Limits: First-time homebuyers in Boston and the Commonwealth’s 26 Gateway Cities* can earn up to 135% of the area median income (AMI); first-time buyers can earn up to 100% of AMI in the remainder of the Commonwealth. View income limits.
- Down payment assistance is a 15-year, fixed-rate loan at 2%
(Example: $15,000 down payment assistance loan = 180 payments of $96.53; 2.011% APR)
- Repayment of the down payment assistance is also due upon sale or refinance of the property prior to the end of the 15-year term
*The Gateway Cities are Attleboro, Barnstable, Brockton, Chelsea, Chicopee, Everett, Fall River, Fitchburg, Haverhill, Holyoke, Lawrence, Leominster, Lowell, Lynn, Malden, Methuen, New Bedford, Peabody, Pittsfield, Quincy, Revere, Salem, Springfield, Taunton, Westfield, and Worcester
Operation Welcome Home provides affordable mortgage financing as well as closing cost and down payment assistance to help members of the Reserves and National Guard, active-duty military, Veterans, and Gold Star Families achieve the dream of homeownership.
All Operation Welcome Home loans feature
- Affordable interest rates, fixed for the life of the loan
- Flexible underwriting and income limits
- Loan servicing by MassHousing. If you have a question, you’ll know who to call!
$2,500 Closing Cost Credit
Operation Welcome Home borrowers can now take advantage of a closing cost credit for up to $2,500. Mortgage closing costs are an often overlooked expense. This credit is in addition to MassHousing’s Down Payment Assistance Program.
Operation Welcome Home borrowers can qualify for a down payment assistance loan for up to 5% of the purchase price or $15,000, whichever is less. Learn more about Down Payment Assistance from MassHousing!
Not all MassHousing Mortgages require MI. Loans insured by MassHousing feature
- Mortgage Payment Protection with MI Plus: unique coverage that helps pay your mortgage if you lose your job! Regardless of which MI option you choose, all loans insured by MassHousing feature MI Plus, unique borrower protection that helps pay your mortgage if you lose your job.
- Discounted MI premiums for eligible borrowers
- Monthly and single MI premiums are available
Regardless of which MI option you choose, all loans insured by MassHousing feature MI Plus, unique borrower protection that helps pay your mortgage if you lose your job. MI Plus
- Covers principal and interest payments for up to six months (up to $2,000/month)
- Comes at no added cost on loans insured by MassHousing
- May be used for any six months during the first 10 years of the loan.
Owning a home is a big part of the American Dream. Here are some resources that can help you buy, maintain and keep your home.
Buying a Home
Owning and Maintaining Your Home
Other Massachusetts Resources