MassHousing Mortgage + DPA
What This Looks Like for a $350,000 Home in Massachusetts
How Massachusetts's First-Time Homebuyer Programs Work
MassHousing offers MassHousing Mortgage + DPA to qualifying first-time buyers in Massachusetts. Most Massachusetts buyers pair this with an FHA, VA, USDA, or Conventional 97 loan, using the DPA to cover the down payment, closing costs, or both. The DPA is structured as second mortgage (up to $50k).
Eligibility requirements
Most Massachusetts HFA programs require: (1) you haven't owned a primary residence in the last 3 years, (2) household income under ~$167,000 (county-dependent), (3) minimum FICO score of 640-680, (4) the home is your primary residence, (5) you complete a HUD-approved homebuyer education course (typically online, ~6-8 hours).
How to apply for MassHousing Mortgage + DPA
You don't apply directly through MassHousing — you apply through one of their participating lenders. The agency lists approved lenders on their website. Get pre-approved with at least 2-3 of them: rates and fees vary, even within the same DPA program.
Combining Massachusetts DPA with federal loans
Pair MassHousing Mortgage + DPA with FHA (3.5% down, 580+ FICO) for the easiest qualifying. Veterans should use VA loans (0% down) — DPA still helps with closing costs. Rural buyers should check USDA (0% down). Buyers with 3-5% down and good credit can use Conventional 97 or HFA Preferred for lower mortgage insurance.
Other Massachusetts buyer benefits
Beyond DPA, ask your lender about: Mortgage Credit Certificates (MCC) for federal tax credits up to $2,000/year, employer-assisted housing programs (some Massachusetts employers offer additional grants), and city/county DPA stacking (cities like the largest metros in Massachusetts often add their own programs on top of state DPA).