THE MASS HOUSING PROGRAM

Mass Housing offers 2 excellent programs designed specifically for 1st time home buyers who meet the household income eligibility and purchase price limit criteria.  These are the Workforce Advantage Program and the First Time Homebuyer Program.  These programs offer Down Payment Assistance in the amount of $30,000 and $25,000 respectively.  You must be a 1st time homebuyer to be eligible for either program.  The purchase price limits are almost always generous enough to meet what the borrower(s) would qualify for given the income limits.  There is no asset test for either program.

THE WORKFORCE ADVANTAGE PROGRAM

• The income limits for the Workforce Advantage Program are determined by the number of persons who will occupy the property as their primary residence.  Children are included.  The limit is set using the Area Median Income (AMI) for Household Size.   For example, a single person in Quincy will have an income limit of $68,520; while a single parent with 3 children will have an income limit of $97,920.  Only the income of adults 18 years or older will be counted.  An example of the household income limits for Boston, Essex County, Norfolk County, Cape Cod and the Islands is shown in the chart below.  There are different income limits across the state depending on the city/town you are looking to buy in.  Call us for more details.
• The Workforce Advantage provides a discounted interest rate and $30,000 for Down Payment Assistance (DPA).  A $30,000 2nd mortgage will be placed on the property.  This mortgage will be a 30 year fixed rate mortgage @ 0% interest.   All payments are deferred - meaning the borrower is not required to make any payments on this 2nd mortgage for as long as they occupy the property as their primary residence.  The $30,000 must be repaid upon refinance or sale of the property.
• When a buyer puts down less than 20% of the purchase price most mortgage programs will require Private Mortgage Insurance (PMI) to be paid in addition to the monthly mortgage payment.  The Workforce Advantage provides PMI at no cost to the borrower(s).  Employment loss coverage is included as part of the PMI.  This provides borrowers with 6 months of mortgage payments in the event of job loss during the first 10 years of the mortgage.
• The minimum FICO score is 640 and the maximum debt to income ratio (DTI) is 45%.
• For a single family home or condominium unit the minimum down payment is 3%.  The DPA or gift funds can be used for the down payment.  For 2-4 unit properties the minimum down payment is 5%.   3% of the down payment OR closing costs must come from the borrower's own funds.  The DPA or gift funds can be used for any remaining balance of the 5% down payment or closing costs.
• Borrowers can also use the DPA to buy down the interest rate on the 1st mortgage. 
• A $2,500 closing cost credit is provided for eligible service members and veterans.
• You can also layer or 'stack' other DPA or Grant programs on top of the Workforce Advantage up to 105% of the property's value.
• You must be a first time homebuyer in order to qualify for this program.
• Completion of a Homebuyer Education course is required.

THE FIRST TIME HOMEBUYER PROGRAM

• The 1st Time Homebuyer Program is for borrowers who exceed the Workforce Advantage income limits.  This program provides aggressively priced rates and $25,000 for Down Payment Assistance (DPA).  A $25,000 2nd mortgage will be placed on the property.  This mortgage will be a 15 year fixed rate mortgage @ 2% interest which comes to $161/month.   Any remaining balance must be repaid upon refinance or sale of the property.   
• Borrowers can also use the DPA for closing costs or to buy down the interest rate on the 1st mortgage. 
• When a buyer puts down less than 20% of the purchase price most mortgage programs will require Private Mortgage Insurance (PMI) to be paid in addition to the monthly mortgage payment.  The 1st Time Homebuyer Program provides PMI at reduced rates to the borrower(s).  Employment loss coverage is included as part of the PMI.  This provides borrowers with 6 months of mortgage payments in the event of job loss during the first 10 years of the mortgage. 
• The income limits are determined by the person(s) who will actually be a borrower/on the deed.  An example of the income limits for Boston, Essex County, Norfolk County, Cape Cod and the Islands is shown in the chart below.  There are different income limits across the state depending on the city/town you are looking to buy in.  Call us for more details. 
• For a single family home or condominium unit the minimum down payment is 3%.  The DPA or gift funds can be used for the down payment.  
• For 2-4 unit properties the minimum down payment is 5%.   3% of the down payment OR closing costs must come from the borrower's own funds.  The DPA or gift funds can be used for any remaining balance of the 5% down payment or closing costs.
• Completion of a Homebuyer Education course is required.
• The minimum FICO score is 640 and the maximum debt to income ratio (DTI) is 45%
• A $2,500 closing cost credit is provided for eligible service members and veterans.
• You can also layer or 'stack' other DPA or Grant programs on top of the Workforce Advantage up to 105% of the property's value.
• As the name suggests, you must be a first time homebuyer in order to qualify for this program.
• Completion of a Homebuyer Education course is required.

THE FHA WORKFORCE ADVANTAGE AND FHA 1ST TIME HOMEBUYER PROGRAM

For borrowers who do not fit into either of these conventional lending programs Mass Housing does offer both programs with DPA in conjunction with the FHA program.  The same income limits apply but FHA has its' own mortgage insurance requirements that go with its' more forgiving underwriting guidelines and sometimes slightly more careful property condition requirements.

THE FANNIE MAE PREFERRED/FREDDIE MAC ADVANTAGE GATEWAY COMMUNITY PROGRAM

• For borrowers who cannot fit into either or both programs because of the income restrictions, Mass Housing will offer the $25,000 DPA to 1st time homebuyers who are buying in a "Gateway" city or town.  There are 2 programs for these homebuyers:

•        A.)  Allows up to 80% of borrower only area median income (AMI) instead of household AMI income.  PMI is provided at reduced rates.
•        B.)  Allows up to 135% of borrower only area median income (AMI) instead of household AMI income.  PMI is provided at standard rates.

Some examples of the Gateway city/town income limits for this program are included in the chart below.  There are more cities and towns that are considered Gateway cities/towns.   Renovations are allowed with this program.  Call us for more details.

The Mass Housing Partnership (MHP) offers an interesting Down Payment Assistance program that comes in 2 flavors;  The One Mortgage and The One+ Boston Mortgage.  These programs are exclusively for first time homebuyers* and focus on a permanent interest rate reduction that will provide the borrower(s) with an affordable monthly mortgage payment throughout the life of the loan.  The interest rate reduction is accomplished by using a State Subsidy, Down Payment Assistance programs (DPA) and any Grants the Borrower(s) may be eligible for in order to buy down the rate at the time of application.  This is commonly referred to as 'paying points'.  

Another way affordability is obtained is by capping the borrower(s) mortgage-only debt to income ratio at 33% and also capping the borrower(s) overall debt to income ratio at 38% for single family residences and condos.  Borrowers with a FICO of 640 or above who fall within these ratios will be eligible for approval.  If the borrower(s) have a mortgage-only debt to income ratio of up to 36% and have an overall debt to income ratio of up to 43%, approval can still be obtained with at least 3 compensating factors.  (i.e., higher credit scores, employment stability and savings).  These ratio limits are more restrictive than those mandated on a conventional or FHA loan which means the borrower(s) may not be able to bid as much as they would like for a property.  But the MHP does make up for some of that by providing discounted interest rates and the ability to use a State Subsidy, DPA or Grant funds to further buy down the interest rate.  These interest rate buy downs should equate to restoring some of that buying power for the borrower(s).

For 2 family properties the borrower(s) mortgage-only debt to income ratio is capped at 45% and the borrower(s) overall debt to income ratio is capped at 50%.  75% of rental income can be used to help the borrower(s) achieve these ratios and the rental income will not be used against borrowers when calculating the maximum AMI household income for program qualification purposes.  The same is true for 3 family properties.  However, the debt to income ratio is simply capped at 50%.  1 month of reserves is required for 2 family properties and 2 months of reserves is required for 3 family properties.

THE ONE MORTGAGE PROGRAM HIGHLIGHTS

• A 3% down payment is required for condominiums, single family residences and 2 unit properties.  1.5% of that 3% must come from the borrowers own funds. The remaining 1.5% can come from a Gift, DPA, or a Grant.
• A 5% down payment is required for 3 unit properties.  3% of that 5% must come from the borrowers own funds. The remaining 2% can come from a Gift, DPA, or a Grant.
• When a buyer puts down less than 20% of the purchase price most mortgage programs will require Private Mortgage Insurance (PMI) to be paid in addition to the monthly mortgage payment.  The ONE Mortgage Program provides PMI at no cost to the borrower(s). 
• The ONE Mortgage Program provides a discounted interest rate on a 30 year fixed rate mortgage.
• In order to obtain the funds necessary to buy down the interest rate, a state subsidy is made available for borrowers whose income is not in excess of 80% of the area median income (AMI) and whose mortgage payment (principal, interest, taxes, insurance and condo/HOA fees) cause them to have a debt to income ratio over 28%.  For these borrowers, up to $15,000 is available to buy down the interest rate so that their mortgage payment can be reduced in order to get them to, or closer to that 28% debt to income ratio number.  The subsidy is provided via a 2nd mortgage at 0% interest.  All payments on the 2nd mortgage are deferred and the second mortgage can be subordinated.  Borrowers purchasing a 2 family property can be eligible for the subsidy if their mortgage payment (principal, interest, taxes, insurance and condo/HOA fees) cause a debt to income ratio over 42%.  3 family properties are not eligible for the subsidy.
• Borrowers must complete a CHAPA approved first time homebuyer course prior to closing.
• Borrowers and all adults who will occupy the home must provide 3 years of tax returns with their application.  All adults who will occupy the home must be first time homebuyers whether they are applying for the mortgage loan or not.
• *Borrowers who are not first time homebuyers can still be eligible if they are a Single Parent or a Displaced Homemaker (i.e.  an individual who has owned a home with their partner or resided in a home owned by the partner and whose primary occupation was to care for the home/family).
• The total household income from all adults who will occupy the home must not exceed 100% of the area median income (AMI) as adjusted for household size.
• The total household assets cannot exceed $75,000.  Retirement accounts are excluded.

THE ONE+ BOSTON MORTGAGE PROGRAM HIGHLIGHTS

• The One + Mortgage program offers a unique rate reduction that is offered in 2 tiers:  1.)  Borrower(s) whose AMI is 80 or above can receive a 1 point reduction to their interest rate.  2.)  Borrower(s) whose AMI is below 80 can receive a 2 point reduction to their interest rate.
• Borrower(s) must be first time homebuyers.
• Borrower(s) must be a current resident of the City of Boston and be looking to purchase within the City of Boston.  An exception is made for Borrowers who are currently working in the City of Boston and are looking to purchase within the City of Boston.
• A 2nd exception is made for tenants who currently rent outside the City of Boston but who can demonstrate they were displaced from their rental in the City of Boston within the last 2 years due to high rents.
• The property must be your primary residence.
• A 3% down payment is required for condominiums, single family residences and 2 unit properties.  1.5% of that 3% must come from the borrowers own funds. The remaining 1.5% can come from a Gift, DPA, or a Grant.
• A 5% down payment is required for 3 unit properties.  3% of that 5% must come from the borrowers own funds. The remaining 2% can come from a Gift, DPA, or a Grant.
• Borrower(s) must have a 640 FICO score for 1 unit properties and a 660 FICO score for 2-3 family homes.
• When a buyer puts down less than 20% of the purchase price most mortgage programs will require Private Mortgage Insurance (PMI) to be paid in addition to the monthly mortgage payment.  The ONE+ Boston Mortgage Program provides PMI at no cost to the borrower(s). 
• The ONE+ Boston Mortgage Program provides a discounted interest rate of up to 2 points on a 30 year fixed rate mortgage.
• Borrowers must complete a CHAPA approved first time homebuyer course prior to closing.
• Borrowers and all adults who will occupy the home must provide 3 years of tax returns with their application.  All adults who will occupy the home must be first time homebuyers whether they are applying for the mortgage loan or not.
• *Borrowers who are not first time homebuyers can still be eligible if they are a Single Parent or a Displaced Homemaker (i.e.  an individual who has owned a home with their partner or resided in a home owned by the partner and whose primary occupation was to care for the home/family).
• The total household assets cannot exceed $100,000.  Retirement accounts are excluded.
• The total household income from all adults who will occupy the home must not exceed the income listed in the chart below. 

The Federal Home Loan BankBoston offers 3 unique Down Payment Assistance (DPA) Programs designed to assist 3 categories of borrowers.   These come in the form of Grants of up to $50,000 that can be used for down payments and closing costs.  The Grant can be combined with other DPA programs, Grants and subsidies that may be available to the borrower(s).   The Federal Home Loan BankBoston does not deal with borrowers directly.  They only provide the Down Payment Assistance Funds to the lender and oversee the approval process to make sure eligibility guidelines are met.  There is no minimum credit score or asset test to qualify for these programs.  However, there is an income limit for each program that is based on total household income of all adults who will occupy the property. 

The borrower(s) can have a mortgage-only debt to income ratio of up to 37%.  If the borrower(s) mortgage-only debt to income ratio is higher, approval can still be obtained with at least 3 compensating factors.  (i.e., higher credit scores, employment stability and savings).   This program does not look at the Borrower(s) overall debt to income ratio.  However, it can be offered as a compensating factor for example when the Borrower(s) have no other debt or very little other debt.   These ratio limits are more restrictive than those mandated on a conventional or FHA loan which means the borrower(s) may not be able to bid as much as they would like for a property.  But the FHL BankBoston programs do make up for some of that by providing more funds that can be used for a down payment (making the loan amount is lower) and by allowing up to 2 points to be paid from DPA funds in order to buy down the interest rate.   Borrowers also are allowed to combine the FHL BankBoston DPA with other DPA or Grant funds to further increase their down payment.  

A comparison chart of the 3 programs is included below.

THE EQUITY BUILDER PROGRAM HIGHLIGHTS

• Provides down payment and closing cost assistance to households with incomes at or below 80% of the Area Median Income (AMI).  
• The Grant amount for this program is $25,000.
• These are Forgivable Grants.  They are not loans.  The Borrower(s) must continue to own and occupy the property as their primary residence for 5 years and then the Grant will be forgiven.
• Borrower(s) must be a first time homebuyer.
• The Grant can be used to pay up to 2 points in order to buy down the interest rate.
• The Grant can be used to pay closing costs including prepaids and escrows.  It cannot be used to pay closing table prorations.
• The program can be used for 1-4 family homes, condominiums (both warrantable and non warrantable), townhouses, cooperative housing units and manufactured housing.
• The property must be the borrower(s) primary residence.
• Income of all adults in the household are considered for purposes of determining household income limits.
• First Time Homebuyers must complete a homebuyer education course.
• There are no asset limits.
• The Grants can be used with Non-QM loans.  (i.e. Portfolio loans)
• The Grant mortgage can be subordinated.
• The Grant mortgage can be placed in the last lien position in order to allow Borrower(s) to access other DPA programs that can be used in combination with the Grant.

THE HOUSING OUR WORKFORCE (HOW) PROGRAM HIGHLIGHTS

• Provides down payment and closing cost assistance to households with incomes above 80% and up to 120% of the Area Median Income (AMI).
• The Grant amount for this program is $25,000.
• These are Forgivable Grants.  They are not loans.  The Borrower(s) must continue to own and occupy the property as their primary residence for 5 years and then the Grant will be forgiven.
• Borrower(s) do not have to be a first time homebuyer.  However, they must sell their current primary residence.
• The Grant can be used to pay up to 2 points in order to buy down the interest rate.
• The Grant can be used to pay closing costs including prepaids and escrows.  It cannot be used to pay closing table prorations.
• The program can be used for 1-4 family homes, condominiums (both warrantable and non warrantable), townhouses, cooperative housing units and manufactured housing.
• The property must be the borrower(s) primary residence.
• Income of all adults in the household are considered for purposes of determining household income limits.
• First Time Homebuyers must complete a homebuyer education course.
• There are no asset limits.
• The Grants can be used with Non-QM loans.  (i.e. Portfolio loans)
• The Grant mortgage can be subordinated.
• The Grant mortgage can be placed in the last lien position in order to allow Borrower(s) to access other DPA programs that can be used in combination with the Grant.

THE LIFT UP HOMEOWNERSHIP (LUH) MORTGAGE PROGRAM HIGHLIGHTS

• This is a Special Purpose Program that provides down payment and closing cost assistance to people of color in households with incomes at or below 120% of the Area Median Income (AMI).
• Only one borrower/person on the mortgage must identify as a person of color.  This must be certified by the person of color.  The loan officer/lender cannot complete this part of the application form.
• The Grant amount for this program is $50,000.
• These are Forgivable Grants.  They are not loans.  The Borrower(s) must continue to own and occupy the property as their primary residence for 5 years and then the Grant will be forgiven.
• Borrower(s) must be a first time homebuyer.
• The DPA can be used to pay up to 2 points in order to buy down the interest rate.
• The Grant can be used to pay closing costs including prepaids and escrows.  It cannot be used to pay closing table prorations.
• The program can be used for 1-4 family homes, condominiums (both warrantable and non warrantable), townhouses, cooperative housing units and manufactured housing.
• The property must be the borrower(s) primary residence.
• Income of all adults in the household are considered for purposes of determining household income limits.
• First Time Homebuyers must complete a homebuyer education course.
• There are no asset limits.
• The Grants can be used with Non-QM loans.  (i.e. Portfolio loans)
• The Grant mortgage can be subordinated.
• The Grant mortgage can be placed in the last lien position in order to allow Borrower(s) to access other DPA programs that can be used in combination with the Grant.

FHA requires a 3.5% down payment for 1 unit properties and a 5% down payment for 2 unit properties.  Many borrowers are unable to save up for the down payment, plus closing costs and have a safety cushion in their savings account when all is said and done.  The Chenoa Fund offers 2 Down Payment Assistance programs for borrowers who are seeking to purchase their home via an FHA loan.  These programs are generally referred to as the DPA Edge Forgivable and the DPA Repayable Second.  Both programs provide the full 3.5% or 5% down payment required by FHA.  There are no income eligibility criteria for the Repayable or Forgivable programs.  However, borrowers who have an income that is less than 135% of the Area Media Income (AMI) for the area they are buying in will receive the most favorable rates.   Borrowers will generally find that the closing costs on the Forgivable Second program are approximately 1%-2% more than on the Repayable Second program.  However, the monthly mortgage payment will be lower when using the Forgivable Second program.   An example scenario using a purchase of a $500,000 single family residence is included below.

THE DPA EDGE FORGIVABLE PROGRAM

• With this program the borrowers are given the full 3.5% or 5% down payment required by FHA via a 2nd mortgage in the amount of the down payment provided.  This 2nd mortgage has an interest rate of 0% and is amortized over 30 years.  All payments are deferred so that no payment is required.   
• The 2nd mortgage on the 3.5% DPA is forgiven and released from the property after 36 consecutive months of on time payments.   A payment is considered on time provided it is made within 30 days of its' due date.  If a late payment is made during this 36 month period then the 36 month clock will start over again.  If the borrower then makes 36 consecutive months of on time payments the 2nd mortgage is forgiven and released from the property.  The borrowers will have the full 30 years to meet this requirement.   NOTE:  The 2nd mortgage on a 5% DPA is forgiven and released from the property after 120 consecutive months of on time payments.
• If the borrowers refinance or sell the house before reaching 36/120 months of on time payments then they will have to pay back the DPA amount in full.
• The minimum FICO score is 600.
• You can also layer or 'stack' Seller concessions/credits and other DPA or Grant programs on top of the DPA Edge Forgivable Program.
• You do not need to be a first time homebuyer in order to qualify for this program.
• The property must be the borrowers primary residence.
• Conforming and High Balance loan limits are allowed.
• 1-2 unit attached, detached homes, condominiums, PUD, townhouses, modular and manufactured homes are allowed.
• Completion of a Homebuyer Education course is not required with a mid FICO score of 640 or above.

THE DPA REPAYABLE SECOND PROGRAM

• With this program the borrowers are given the full 3.5% or 5% down payment required by FHA via a 2nd mortgage in the amount of the down payment provided.  As of April 2, 2025 this 2nd mortgage has an interest rate that matches the 1st mortgage plus 1% and is amortized over 10 years.
• The minimum FICO score is 600.
• You can also layer or 'stack' Seller concessions/credits and other DPA or Grant programs on top of the DPA Repayable Second Program.
• You do not need to be a first time homebuyer in order to qualify for this program.
• The property must be the borrowers primary residence.
• Conforming and High Balance loan limits are allowed.
• 1-2 unit attached, detached homes, condominiums, PUD, townhouses, modular and manufactured homes are allowed.
• Completion of a Homebuyer Education course is not required with a mid FICO score of 640 or above.

A HYPOTHETICAL BORROWER COMPARISON BETWEEN THE CHENOA REPAYABLE AND THE CHENOA FORGIVABLE PROGRAM

 Purchase Price:  $500,000

Down Payment:  $17,500

Single Family Residence
 

 In this scenario the qualified borrower has a 700 FICO score and their income is below the 135% AMI threshold.  They are purchasing a $500,000 single family residence with 3.5% down ($17,500).  The Chenoa Fund is providing the full down payment via either a repayable or forgivable 2nd mortgage in the amount of $17,500.  FHA requires monthly mortgage insurance in addition to its' Up Front One Time Mortgage Insurance Premium of 1.75%.  The One Time Mortgage Insurance Premium will be included as part of the 1st mortgage loan.

THE CHENOA FORGIVABLE PROGRAM

Down Payment via DPA:  $17,500
Mortgage Amount:  $490,943 (This includes the 1.75% Mortgage Insurance Premium required by FHA)
1st Mortgage Payment: $3,560.00 (Paying app. 1 point)  
2nd Mortgage Payment: $0 
Mortgage Insurance: $221.15
Est. Property Taxes (Monthly @ $3,300 Annual):  $275.00
Est. Insurance: (Monthly @ $2,100 Annual): $175.00
_______________________________
TOTAL:  $4,231.15

THE CHENOA REPAYABLE PROGRAM

Down Payment via DPA:  $17,500
Mortgage Amount:  $490,943 (This includes the 1.75% Mortgage Insurance Premium required by FHA)
1st Mortgage Payment: $3,517.00 (Paying app. 0 points and receiving a credit to closing costs of $1,522.)  
2nd Mortgage Payment: $219.00 
Mortgage Insurance: $221.15
Est. Property Taxes (Monthly @ $3,300 Annual):  $275.00
Est. Insurance: (Monthly @ $2,100 Annual): $175.00
_______________________________
TOTAL:  $4,407.15

 Pros/Cons:  Closing costs are $6,250 less using the Chenoa Repayable/The monthly payment is $176 higher.  

THE SAME SCENARIO WITH NO DOWN PAYMENT ASSISTANCE

Down Payment via Borrowers Own Funds or Gift Funds:  $17,500 

Mortgage Amount:  $490,943 (This includes the 1.75% Mortgage Insurance Premium required by FHA)
1st Mortgage Payment: $2,943.00
2nd Mortgage Payment: $0 
Mortgage Insurance: $221.15
Est. Property Taxes (Monthly @ $3,300 Annual):  $275.00
Est. Insurance: (Monthly @ $2,100 Annual): $175.00
_______________________________
TOTAL:  $3,614.15

• The above is based on rates and program guidelines as of April 2, 2025.  Rates, terms and guidelines are subject to change without notice.

 NACA (The Neighborhood Assistance Corporation Of America) offers a unique program to assist prospective homebuyers reach their goal of owning a home.  Although they do not offer Down Payment Assistance (DPA), their loan program does not require any down payment and they will let you use other DPA programs in conjunction with their program.    There are no income limits with this program.  However, if your income exceeds the area media income (AMI) where your new home is located then you will be eligible to become a "Non Priority Member".  Non Priority Members can only use this program to purchase in certain designated 'Priority Areas'.  Non Priority Members still receive favorable interest rates and can purchase their home with no money down.  If your income is below the AMI then you can be eligible to become a "Priority Member".  Priority Members can purchase anywhere and will have access to lower interest rates.

To determine the AMI you can enter the zip code and property address using the NACA lookup tool.   

Some examples of AMI in Massachusetts counties are provided in the chart below.

THE NACA PROCESS

• The NACA application process is a bit different than the traditional mortgage application process.  It starts with becoming a NACA member.  The Membership Fee is only $35/year.  You also must agree to volunteer/participate in at least 5 NACA events a year.  In addition, you must volunteer/participate in at least 1 NACA event prior to being qualified and one event prior to closing.
• NACA believes in Homebuyer education, mentoring and training and so your application process will begin with a Homeownership Workshop.  Information on homeownership and details regarding the NACA program will be provided at this initial workshop.  The workshop can be done at a local NACA office or scheduled virtually.
• You will then meet with a NACA housing counselor.  At this meeting you and the counselor will go over your monthly debts and income to determine whether you would qualify for a mortgage and what amount you would be able to borrow.  If it is determined that you will not qualify or will not qualify to buy in the price range you are hoping for, your housing counselor will propose a strategy to get you qualified.  The housing counselor will stay in touch with you to assist you and monitor your progress. 
• When you are finally qualified by the housing counselor and become a NACA qualified member you will then attend a NACA Home Purchase Workshop where you will go even further into learning about the home buying process.  You will also be assigned a NACA approved realtor to help you find a home that meets your budget.
• Remember, your NACA qualification will only be good for 6 months.  If you don't purchase a home within this time frame then you will have to start all over again.
• Whether you are using NACA or any other program, having a letter that states you are qualified to purchase the home at the price you are offering is crucial in this market.  As soon as you find a house you want to make an offer on contact your housing counselor and request a Qualification Letter.  They will get this to you promptly.
• If your Offer is accepted NACA will schedule a home and pest inspection.  Any material defects found during these inspections will have to be repaired prior to final approval.
• You should also be meeting with your lender/loan officer at this time to confirm your continued eligibility and finalize your application.  Currently, NACA only uses Bank of America as a lender.
• You do not have to be a first time homebuyer to participate in the program.

THE NACA PROGRAM

• As stated above, the NACA Program has income parameters that will determine whether you are eligible to become a 'Priority' or 'Non Priority' member.  These income limits are based on the income of all borrowers and co-borrowers.  The median income used is the median income of the area where your new home will be located.  You will be required to produce Tax Returns, W-2's, bank statements and paystubs to verify your income.  NOTE:  Because the income limits vary by property location, you may be a 'Priority Member' in one location and a 'Non Priority Member' in another location.
• There is no minimum credit score needed in order to qualify for the NACA program.  Instead, NACA will look at you most recent 12 month history to confirm you have been paying your rent and other monthly debt obligations on time.
• The mortgage loan amount cannot exceed the Fannie Mae/Freddie Mac conforming loan limits for the county where your new home will be located.
• Debt To Income Ratio (DTI):  Your new mortgage payment, including property taxes, homeowner's insurance and HOA or Condominium fees cannot exceed 31% of your gross monthly income.  Your new mortgage payment plus your other monthly debt obligations (i.e. credit card, car payments) cannot exceed 43% of your gross monthly income.  
• Payment Shock:  You will be required to have 3-6 months of reserves in your personal savings/checking account(s) to cover any payment shock.  Payment Shock is defined as any amount by which your new mortgage payment will exceed your current rent.  For example:  if your current rent is $1,700/month and your new mortgage payment will be $2,100/month you will be required to have $1,200-$2,400 in reserves in your personal checking/savings account(s).  The reserves must remain in your personal account(s) through closing.
• The property must be the borrower's primary residence.
• At the time of closing the home must be the only home for all household members.  (Defined as 21 years or older and living in the house.)
• 1-4 unit attached, detached homes, condominiums, PUD, townhouses, modular and manufactured homes are allowed.
• No fees or closing costs are charged to the borrowers.
• No down payment is required.
• Mortgage Insurance (PMI) is not required.
• Housing Choice Voucher or Section 8 Voucher recipients can combine their vouchers with NACA program benefits.
• Renovations can be done with the Purchase/Renovation program where the purchase price and cost of renovations is combined into one loan.
• Seller Credits and Grants can be used to buy down the interest rate.

In addition to the programs outlined above many cities and towns across Massachusetts offer Down Payment Assistance Programs for buyers looking to purchase in their community.  Many of these programs can be used in combination with other programs.  Below is a list of the programs we have been able to find for you.  This is not an exhaustive list and many of these programs are first come/first serve until the funds run out for the fiscal year.  As always, let us know how we can help you.

NORTH SUBURBAN CONSORTIUM (Arlington, Chelsea, Malden, Everett, Medford, Melrose, Revere, Winthrop)

• Provides down payment and closing cost assistance up to $10,000 for a non-subsidized property and up to $5,000 for an NSC HOME subsidized property.
• All payments are deferred and the interest rate is 0%.  The loan is forgiven after 5 years.  In years 1-5 the loan is forgiven at 20%/year.
• Borrower(s) must be a first time homebuyer OR you are a displaced homemaker or single parent who has only owned a home with a former spouse while married.
• Borrower(s) must have a minimum FICO score of 620.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
• Borrower(s) household income must not exceed 80% of the AMI.
• Total liquid assets cannot exceed $75,000.
•  www.cityofmalden.org/867/HOME-Program 

THE SOUTH SHORE HOME CONSORTIUM (QUINCY, WEYMOUTH, BRAINTREE, & HOLBROOK)

• Maximum Amount of Downpayment Assistance Available:  
• Braintree Lesser of 6% of purchase price or $20,000  
• Holbrook Lesser of 6% of purchase price or $17,500  
• Quincy Lesser of 9% of purchase price or $20,000  
• Weymouth Lesser of 9% of purchase price or $20,000 
• All payments are deferred, and the interest rate is 0%.  For DPA up to $15,000, the loan is forgiven after 5 years.  For DPA of $15,001 - $20,000, the loan is forgiven after 10 years.   If you do not occupy the property as your primary residence for the 5 or 10 year period then the DPA must be repaid upon sale or refinance.  The DPA mortgage can be subordinated to allow for a refinance.
• Borrower(s) must be a first time homebuyer OR you are a displaced homemaker or single parent who has only owned a home with a former spouse while married.
• Borrower(s) purchasing in Weymouth must provide 1.5% of their own funds as a down payment.
• Borrower(s) purchasing in Quincy, Braintree and Holbrook must provide 3% of their own funds as a down payment.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
• Borrower(s) household income must not exceed 80% of the AMI.
• Total liquid assets cannot exceed $75,000.  (Retirement accounts and personal property are not included.)
• Planning & Community Development 

THE CITY OF ANDOVER

• Provides down payment and closing cost assistance up to $30,000 maximum.
• All payments are deferred and the interest rate is 0%.  The loan is forgiven after 10 years.  In years 6-10 the loan is forgiven at 20%/year.
• Borrower(s) must be a first time homebuyer.
• Borrower(s) must provide 1.5% of their own funds as a down payment.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
• Borrower(s) income must not exceed 100% of the AMI.
• Total liquid assets cannot exceed $75,000.  ($375,000 for those over age 55.)
•  brhousing.org/down-payment-assistance

TOWN OF BELCHERTOWN

• Provides down payment and closing cost assistance of up to $5,000.
• All payments are deferred and the interest rate is 0%.  The loan is forgiven after 5 years.
• Borrower(s) must be a first time homebuyer.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
• Borrower(s) household income must not exceed 100% of the AMI.
• www.wayfinders.org  

THE BROCKTON REDEVELOPMENT AUTHORITY

• Provides down payment and closing cost assistance up to 3.5% of the purchase price or $12,000 maximum.
• An additional 25% of the amount provided by the BRA is available up to a maximum of an additional $3,000
• All payments are deferred at 0% interest and the amount provided is repaid upon sale or refinance.
• Borrower(s) must be a first time homebuyer.
• Borrower(s) must provide 1.5% of their own funds as a down payment and 2.5% of their own funds for multifamily properties.
• The property must be the borrower(s) primary residence.
• Income of all adults in the household are considered for purposes of determining household income limits.
• Borrower(s) must complete a homebuyer education course.
•  www.brocktonredevelopmentauthority.com/ 

THE CITY OF CAMBRIDGE

• Provides down payment and closing cost assistance up to $10,000 maximum.
• All payments are deferred and the loan is forgivable at 20%/year for 5 years provided the property remains as the Borrower(s) only residence.
• Borrower(s) must be a first time homebuyer.
• Borrower(s) must complete a homebuyer education course.
• Borrower(s) must be unable to purchase the home without assistance.
• Borrower(s) must meet household size income limits.
• Downpayment Assistance Flyer, May 2024 - Cambridge, Massachusetts 

THE CITY OF CHICOPEE

• Provides down payment and closing cost assistance up to 5% of the purchase price up to a $15,000 maximum.
• All payments are deferred and the loan is forgivable after 5-10 years provided the property remains as the Borrower(s) primary residence.
• Borrower(s) must be a first time homebuyer.
• Borrower(s) must provide 3% of their own funds as a down payment.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
• Borrower(s) must meet household size income limits.
• Total liquid assets cannot exceed $25,000.
• Borrower(s) should have 2 months of mortgage payments in reserve post closing.
• First-Time-Homebuyer-Assistance-Application-English-Version 

THE CITY OF EVERETT

• Provides down payment and closing cost assistance up to $20,000 maximum.
• Available to residents with incomes between 60% and 100% of the Area Median Income (AMI).
• All payments are deferred and the loan is forgivable at 20%/year for 5 years provided the property remains as the Borrower(s) only residence.
• Borrower(s) must be a first time homebuyer.
• The property must be the borrower(s) primary residence.
• Total liquid assets cannot exceed $75,000.
•  www.cityofeverett.com/city-hall/departments/planning-development/everett-first-time-homebuyers-resources/ 

THE CITY OF FALL RIVER

• Provides down payment and closing cost assistance up to $40,000 maximum @ 1% interest.
• The homebuyer assistance portion of the DPA is deferred for as long as the Borrower(s) remain in compliance with program requirements.
• Subject to borrower income limits.
• Minimum credit score of 650.
• The loan is forgivable after 5 years for DPA up to $15,000 and after 10 years for DPA of $15,001 - $40,000 provided the property remains as the Borrower(s) primary residence.
• Borrower(s) must be a first time homebuyer.
• Borrower(s) must provide 1.5% of their own funds as a down payment.
• Borrower(s) must have post-closing cash of at least $3,000 but cannot have more than $25,000 in liquid assets.
• Borrower(s) debt to income ratio cannot exceed 45%.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
•   www.fallriverma.gov/departments/community_development_agency/programs/index.php 

THE CITY OF GLOUCESTER

• Provides down payment and closing cost assistance up to $15,000 maximum.
• Available to residents with household incomes at or below 80% of the Area Median Income (AMI).
• All payments are deferred and the interest rate is 0%.
• Borrower(s) must be a first time homebuyer.
• The property must be the borrower(s) primary residence.
•   www.gloucester-ma.gov/498/First-Time-Homebuyers 

THE CITY OF GREAT BARRINGTON

• Provides down payment and closing cost assistance up to 10% of the purchase price up to a $25,000 maximum.
• All payments are deferred at 0% interest and the amount provided is repaid upon sale or refinance.
• Borrower(s) do not have to be a first time homebuyer.
• First Time Homebuyers must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
•    www.gbhousing.org/downpayment-assistance 

TOWN OF HAVERHILL

• Provides down payment and closing cost assistance up to $15,000 for designated street locations in Haverhill.
• 1-4 family properties are eligible.
• All payments are deferred and the interest rate is 0%.  The loan is forgiven after 5 years.  In years 1-5 the loan is forgiven at 20%/year.
• Borrower(s) must be a first time homebuyer OR you are a displaced homemaker or single parent who has only owned a home with a former spouse while married.
• Borrower(s) must provide 1.5% of their own funds as a down payment.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
• Borrower(s) household income must not exceed the allowable AMI.
• Total liquid assets cannot exceed $25,000 after closing.
•   www.cityofhaverhill.com/departments/first_time_homebuyer_downpayment_assistance_program/index.php  

THE CITY OF HOLYOKE

• Provides down payment and closing cost assistance up to $4,999 maximum.
• All payments are deferred and the loan is forgivable after 5 years provided the property remains as the Borrower(s) primary residence.
• Borrower(s) must be a first time homebuyer.
• Borrower(s) must provide 1.5% of their own funds as a down payment.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
•    www.holyokehousing.org/programs/home-ownership/downpayment-and-closing-cost-assistance 

THE CITY OF LAWRENCE

• Provides down payment and closing cost assistance up to $25,000 maximum.
• All payments are deferred and the interest rate is 0%.
• Borrower(s) must be a first time homebuyer.
• Borrower(s) must provide 1.5% of their own funds as a down payment.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
• Total liquid assets cannot exceed $25,000.
• www.cityoflawrence.com/351/Programs-for-Homeowners-First-Time-Home- 

TOWN OF LEVERETT

• Provides down payment and closing cost assistance of up to 5% of the purchase price.
• All payments are deferred and the interest rate is 0%.
• Borrower(s) must be a first time homebuyer.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
• A $50,000 Buy Down program is also available for affordable housing deed restricted properties.
• Leverett Affordable Housing Programs – HRA 

THE CITY OF LOWELL (MERRIMACK VALLEY)

• Provides down payment and closing cost assistance up to $11,800 maximum.
• All payments are deferred and the interest rate is 0%.
• Borrower(s) must be a first time homebuyer.
• Borrower(s) must provide 1.5% of their own funds as a down payment.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
• Borrower(s) must meet household size income limits.
• www.mvhp.org/down-payment-assistance-programs/city-of-lowell-home-program

THE CITY OF LYNN

• Provides down payment and closing cost assistance up to $10,000.
• Borrower(s) must be a first time homebuyer.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
•  Home Ownership - Lynn Housing Authority 
• 
  

THE CITY OF NEW BEDFORD

• Provides down payment and closing cost assistance up to $10,000 maximum.
• All payments are deferred and the interest rate is 0%.  The loan is forgiven after 10 years.
• Borrower(s) must be a first time homebuyer.
• Borrower(s) must provide 1.5% of their own funds as a down payment on 1-2 family properties and 3% on 3 family properties.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
• Borrower(s) must meet household size income limits.
•  www.newbedford-ma.gov/housing-community-development 

THE CITY OF NEWBURYPORT

• Provides down payment and closing cost assistance up to $20,000 maximum.
• Available to residents with incomes up to 100% of the Area Median Income (AMI) for non-deed restricted homes and up to 80% of the AMI for deed restricted homes.
• All payments are deferred and the loan is forgivable at 20%/year for 5 years provided the property remains as the Borrower(s) primary residence.
• Borrower(s) must be a first time homebuyer OR you are a displaced homemaker or single parent who has only owned a home with a former spouse while married.
• Borrower(s) must provide 1.5% of their own funds as a down payment.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
•   www.cityofnewburyport.com/affordable-housing-trust/pages/home-port

THE CITY OF NEWTON

• Provides down payment and closing cost assistance for affordable housing deed restricted properties.  These programs are available as affordable housing units become available for sale.
• Borrower(s) must be a first time homebuyer.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
•   Current Affordable Housing Opportunities | City of Newton, MA 

THE CITY OF NORTHAMPTON

• Provides down payment and closing cost assistance up to $50,000.
• Borrower(s) must be a first time homebuyer.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
• Borrower(s) must meet the following household size income limits: 
• 1 person – $83,300
• 2 people – $95,200
• 3 people – $107,700
• 4 people – $119,000
• 5 people – $128,520
• 6 people – $138,040
• Valley Community Development Corporation | Northampton Housing Subsidy 

THE TOWN OF PLYMOUTH

• Provides down payment and closing cost assistance up to 50% of the required down payment up to a $15,000 maximum.
• All payments are deferred and the interest rate is 0%.
• Borrower(s) must be a first time homebuyer.
• Borrower(s) must provide 1.5% of their own funds as a down payment.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
• Down Payment Assistance Program | Plymouth, MA 

TOWN OF PROVINCETOWN

• Provides down payment and closing cost assistance OF 10% of the purchase price up to $30,000.
• All payments are deferred and the interest rate is 0%.  The loan is forgiven after 10 years.
• Borrower(s) must be a first time homebuyer.
• Borrower(s) must provide 1.5% of their own funds as a down payment.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
• Borrower(s) household income must not exceed 100% of the AMI.
• Total liquid assets cannot exceed $75,000.
•  http://www.provincetown-ma.gov/350/Housing-Programs 

THE CITY OF SALEM

• Provides down payment and closing cost assistance of $6,500 and up to $7,500 maximum.
• All payments are deferred at 0% interest and the amount provided is repaid upon sale or refinance.
• Borrower(s) must be a first time homebuyer.
• Borrower(s) must complete a homebuyer education course in order to receive the extra $1,000.
• The property must be the borrower(s) primary residence.
•   www.salemma.gov/planning-and-community-development/pages/housing-programs

CITY OF SOMERVILLE

• Provides down payment and closing cost assistance as follows:
• Closing Cost 80 Program:   Closing cost assistance up to $5,000 as a 0% interest, five-year forgivable loan.
• Down Payment Assistance 80 Program:  Down payment assistance up to 15% of the purchase price as a 0% interest, deferred payment loan.
• Closing Cost/Down Payment Assistance 110 Program: We’ll provide up to $5,000 in down payment assistance or closing costs as a 0% interest, five-year forgivable loan.
• Borrower(s) must be a first time homebuyer.
• Borrower(s) must provide 3% of their own funds as a down payment.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
• Borrower(s) household income must not exceed the allowable AMI.
• Income Eligibility:  Applicants must have incomes at or below 80% of Area Median income for the 80% AMI Closing Cost Program.  Applicants must have incomes at or below 110% of Area Median Income for the 110% AMI Closing Cost Program.  
• Microsoft Word - Program Guidelines 9.23.24 
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THE CITY OF SPRINGFIELD

• Provides down payment and closing cost assistance up to $4,000 maximum.
• All payments are deferred and the loan is forgivable at 20%/year for 5 years provided the property remains as the Borrower(s) primary residence.
• Borrower(s) must be a first time homebuyer.
• Borrower(s) must provide 1% of their own funds as a down payment.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
•   www.springfield-ma.gov/housing/home-buyer 

THE CITY OF TAUNTON

• Provides down payment and closing cost assistance up to 25% of the purchase price with a $25,000 maximum.
• All payments are deferred and the loan is forgivable after 5 years for DPA up to $15,000 and after 10 years for DPA of $15,001 - $25,000 provided the property remains as the Borrower(s) primary residence.
• Borrower(s) does not need to be a first time homebuyer.
• Borrower(s) must provide 2% of their own funds as a down payment.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
•    www.taunton-ma.gov/199/Housing-Programs 

TOWN OF WELLFLEET

• Provides down payment and closing cost assistance of $20,000 -$50,000 based on the down payment and closing costs as verified by your lender's commitment letter.
• 1-4 family properties are eligible.
• All payments are deferred and the interest rate is 0%.  The amount provided is repaid upon sale or refinance. Subordinations are possible to allow for the refinance without repayment.
• Borrower(s) must be a first time homebuyer.
• Borrower(s) must provide 1.5% of their own funds as a down payment.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
• Borrower(s) household income must not exceed 100% of the AMI.
• Total liquid assets cannot exceed $75,000.
• www.wellfleethousing.org/home-ownership

TOWN OF WEST SPRINGFIELD

• Provides down payment and closing cost assistance of up to $5,000.
• All payments are deferred and the interest rate is 0%.  The loan is forgiven after 5 years.
• Borrower(s) must be a first time homebuyer.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
• Borrower(s) household income must not exceed 100% of the AMI.
• www.wayfinders.org  

CITY OF WORCESTER

• Provides down payment and closing cost assistance of up to $25,000.
• Borrower(s) must be a first time homebuyer.
• Borrower(s) must complete a homebuyer education course.
• The property must be the borrower(s) primary residence.
•  For more information visit Worcester Community Housing Resources at www.wchr.org or call 508-799-0322.